Powering Mindanao’s future: Why electricity is key to sustaining growth

Mindanao has long been recognized for its potential as an economic engine, yet its progress remains intertwined with one crucial factor: electricity. From frequent power outages to financial stress among electric cooperatives (ECs), the challenge of reliable electrification continues to shape the region’s development.

At the recent Mindanao Business Conference in Tagum City, business leaders and stakeholders highlighted the need for dependable utilities to support rising industries. With the island growing faster than the national average, the question of how to sustain that growth has put power distributors, particularly ECs, at the center of the conversation.

Meralco Senior Vice President and Chief External and Government Affairs Officer Atty. Arnel D. Casanova underscored the weight of reliable electricity on business continuity.

“Why does this matter for business? Because as members of the Chamber, you know that power, both its cost and its reliability directly affects your operations. If you run a manufacturing plant, a food processing facility, or even cold storage, an outage doesn’t just flicker the lights. It stops production. It destroys value,” Casanova said.

He emphasized that without strong distribution systems, the region’s momentum could slow down. “Mindanao is already growing faster than the national average. But if power is not made reliable, that growth will be stunted.”

Drawing from the case of Batangas, Casanova pointed out how industries flourished where electricity was stable. The province recorded a 14.1 percent compound annual growth rate in energy sales in areas with reliable distribution.

“The logic is straightforward: land and labor may be affordable, but investors will not come if power is unreliable. Conversely, when distribution is strong, industries move in, investments follow, jobs are created, and local economies flourish,” he said.

Casanova also called for greater collaboration with ECs, noting that partnerships and shared expertise could help replicate success in Mindanao.

“The numbers speak for themselves. Mindanao is already growing. With stronger utilities, it can grow like Batangas,” he said.

“Together, MERALCO, the electric cooperatives, and the business community, we can ensure that Mindanao achieves its full potential. By strengthening its distribution backbone, we can build a stronger Mindanao and, in the process, a stronger Philippines.”

As Mindanao looks ahead, the path toward a stronger economy may very well depend on its ability to keep the lights on.