MANILA — The Department of Energy (DOE) has announced that an estimated PHP72 billion will be required to achieve the government's target of total household electrification in the Philippines by 2028.
According to Philippines News Agency, who spoke at the 16th Media Seminar organized by the United States Embassy in the Philippines, over two million households currently lack electricity. The total electrification program, managed by the National Electrification Administration, electric cooperatives, and the National Power Corporation, aims to ensure that by 2028 the entire nation is electrified, a directive from the President. Guevara explained that this initiative is expected to significantly boost the country's economy.
The DOE, in collaboration with the Philippine Statistics Authority, conducted a study estimating the total economic impact of achieving total electrification at PHP315 billion, approximately 1.8 percent of the nation's GDP. Guevara highlighted the direct correlation between increased electricity access and household economic improvement, noting substantial increases in household income and expenditure as electricity availability extends from 8 hours to 24 hours a day.
As of the end of March this year, the Philippines' total household electrification level was at 93.12 percent. Guevara shared that these findings were recently presented to the Department of Finance (DOF) and the National Economic and Development Authority (NEDA), which recognized the significant economic benefits of total electrification and expressed support for the investment.
Guevara further mentioned the possibility of securing a portion of the needed funds through loans from international financial institutions like the Asian Development Bank (ADB) or the World Bank, while also noting that the government has an annual budget allocation of PHP3 to PHP5 billion for the electrification program.