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Philippines
Monday, February 17, 2025
27.3 C
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Monday, February 17, 2025

Gov’t requires P100b to achieve full electrification,boost economy

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The government will require P100 billion to achieve 100-percent electrification nationwide, which can be offset by the anticipated additional economic contribution of P314 billion or 1.8 percent of the gross domestic product.

Energy Undersecretary Rowena Guevara said during the Microgrid Systems Provider (MGSP) Investment Forum on Jan. 28, 2025 at the Sheraton Manila Bay that total electrification rate is around 92 to 93 percent, with Mindanao lagging behind at 70 percent.

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She said the focus is to harness the potential of microgrids and sustainable energy solutions to power unserved and underserved communities, accelerate economic growth and safeguard our environment.

“DOE recognizes that the path toward achieving 100-percent rural electrification is fraught with challenges, particularly those concerning investment risks. It is no secret that financing projects in these areas come with its own set of uncertainties, may it be geographical, technical, or financial,” Guevara said.

Guevara encouraged investments in microgrid solutions to electrify over 200 underserved and unserved areas in the Philippines.

“Investing in microgrid solutions isn’t just an investment in energy infrastructure. It’s an investment in economic resilience, environmental sustainability and social impact. As MGSP expands, we are creating robust investment and opportunities aligned with our future energy trends,” she said.

Guevara emphasized the significant advantages of microgrid solutions, including reliable and resilient energy supply, economic development, job creation, environmental sustainability and improved access to education and healthcare in underserved communities.

“The are over 200 areas that need microgrid system developers. These underserved and unserved households represent communities that have long been left behind in our nation’s energy development journey, yet hold so much potential for economic growth if given access to electricity,” said Guevara.

A 2010-2018 study, utilizing data from the Philippine Statistical Authority, Department of Health and the DOE, revealed a strong correlation between household electrification and economic growth.

The study showed that increasing household electricity access from 0 to 8 hours could boost income and expenditure by 17 percent; from 8 to 16 hours, by 33 percent; and from 16 to 24 hours, by 50 percent.

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