Why Camiguin Urgently Needs Reliable Power

September 19, 2025
Balitang Mindanao
Energy Efficiency
0

Despite being one of the country’s smallest provinces in size and population, Camiguin packs many of nature’s best offerings—from hot and cold springs to waterfalls, coral reefs, and shifting white sandbars. Known as the “Island Born of Fire,” its volcanic origins created not only dramatic landscapes but also unique biodiversity, while its rich culture is reflected in old church ruins and colorful traditions like the Lanzones Festival.

Economic growth

In 2023, Camiguin posted the fastest economic growth in Northern Mindanao, expanding by 11% the previous year. The province’s economy climbed to ₱12.33 billion, driven largely by gains in transport, agriculture, and construction.

Camiguin welcomed nearly 289,000 tourists in 2024, up 37.6% the year before. Governor Xavier Jesus Romualdo credited the surge to the Isle Visit Camiguin system, a data-driven platform that tracks visitor flows and demographics. By leveraging smart tourism, the province has boosted the arrivals of mostly domestic travelers and strengthened its economic momentum.

The island’s strong performance helped lift Northern Mindanao’s economy beyond the national average growth in the same year. The region’s output climbed past the trillion-peso mark to ₱1.04 trillion, representing 4.7% of the country’s total economic production.

With Camiguin’s growth pushing peak electricity demand close to 5 megawatts (MW), pressure on the island’s power supply has long been a concern. The community has been grappling with rising costs, unpaid debts, financial losses, and management issues tied to the Camiguin Electric Cooperative Inc. (CAMELCO), the island’s sole power distributor.

(Also read: How Reliable Power Fuels Mindanao’s Rising Economy)

CAMELCO challenges

Over the years, CAMELCO has faced a series of financial, operational, and regulatory challenges that have drawn public attention and affected the island’s power reliability. Operating under a 50-year franchise set to expire in 2033, the cooperative now supplies electricity to more than 25,000 consumers across Camiguin’s five municipalities.

Overcontracting & rising power rates

In 2018, then Representative Xavier Jesus Romualdo highlighted issues including alleged overcontracting, unpaid financial obligations, and the resulting high electricity rates. He noted that the island’s peak demand was just four megawatts per day, yet CAMELCO had entered into agreements with multiple independent power producers, securing a total capacity of 10.73 MW, far exceeding actual needs.

The oversupply meant that the island’s nearly 20,000 member-consumers would shoulder the cost of unused power. At the time, residential rates in Camiguin reached ₱16 per kilowatt-hour (kWh), the highest in the country. CAMELCO also drew additional power from the Power Sector Assets and Liabilities Management Corp. (PSALM), adding to concerns about financial sustainability and the cooperative’s long-term management practices.

Financial mismanagement

In 2019, CAMELCO faced mounting scrutiny over nearly ₱426 million in accumulated losses. CAMELCO Finance Manager Joanne Lapeciros cited long-standing mismanagement, high executive perks, and unpaid obligations to suppliers and government agencies as key factors.

Debts included ₱76.5 million owed to power producers in 2017 and ₱47 million the following year. Local officials, including then Mambajao Mayor Jurdin Jesus Romualdo, labelled the situation “gross mismanagement” and questioned how CAMELCO received an “AAA” rating from the National Electrification Administration (NEA) despite its financial and operational problems.

Regulatory actions

In September 2021, the Energy Regulatory Commission (ERC) ordered CAMELCO to stop collecting additional charges for its reinvestment fund for sustainable capital expenditures (RFSC). The directive came after the utility failed to comply with requirements to provide updated reports on how much it had collected under the ERC-approved scheme.

The RFSC was intended to cover debt payments tied to expansion, rehabilitation, and upgrades of electric systems under approved capital expenditure (capex) plans. However, CAMELCO had not submitted a third-party audit of the extra fees it was charging, nor had it provided updates or justifications for its capex projects and RFSC collections as required by regulators.

Unreliable service

In March 2022, the provincial government convened the Camiguin Energy Summit to tackle mounting concerns over the island’s unreliable power supply. Findings revealed that frequent outages were often caused by vegetation, while CAMELCO lacked clear protocols for outages and load dropping in line with National Grid Corporation of the Philippines (NGCP) standards.

The Department of Energy (DOE) urged CAMELCO to strengthen preventive maintenance, adopt a load dropping protocol, and craft an improved Distribution Development Plan with system upgrades and capital investments. DOE officials also recommended pursuing ISO certification, centralizing IT systems, and enhancing capacity building to improve efficiency and reliability beyond its current limited focus on meter reading, billing, and collection.

However, a quick look at CAMELCO’s official Facebook page still shows recurring outage reports, including one that lasted seven hours on September 15. Frustration from consumers is evident in the comments. Tongatok Cliff Resort Camiguin wrote: “As I hear, it was again a tree falling on the line. When is it enough?” while Frank Wolf asked: “longer than 3 hours blackout and still no reason found for it?”

Latest figures show that CAMELCO customers faced an average of 32.01 power interruptions in a year—the SAIFI (System Average Interruption Frequency Index), which simply measures how often outages occur. The same report shows an average outage duration of 1,103.3 minutes per year—that’s the SAIDI (System Average Interruption Duration Index), which tells us how long, in total, the average customer was without power.

(Also read: Mindanao’s Energy Dilemma: Bridging Surplus to Sustainable Growth)

Stabilizing Camiguin’s power

Amid rising demand and persistent power woes, Camiguin is exploring solutions to secure a stable and reliable electricity supply for its growing economy and communities.

Grid link

Last May 2025, NEA partnered with Spanish engineering firm Osprel SL to study linking Camiguin to the Mindanao power grid through a submarine cable. The Madrid-based consultancy will conduct technical, environmental, and meteorological assessments to determine the feasibility of securing a stable energy supply for the island.

NEA Administrator Antonio Almeda called the project a critical step toward “lasting and sustainable progress,” while the DOE noted that the proposed 69-kilovolt (kV) submarine cable—replacing the island’s aging 13.2 kV line—could reduce voltage fluctuations, cut system losses, and lower electricity costs for consumers.

Enabling local renewables

The DOE said the project would also support the integration of future clean energy projects, including the planned 100-MW Owakan wind farm. Officials added that this aligns with the Philippines’ decarbonization goals, with funding for the feasibility study provided by Spain through its FIELM Studies Grant Facility.

The 100-MW Owakan Wind Power Project in Mahinog, Camiguin, is an onshore development spearheaded by Freya Renewables Inc. and currently listed as announced. According to the Global Energy Monitor, the project aims for commissioning by 2033, though details on feasibility studies, construction timeline, and grid integration remain limited.

Renewable energy (RE) push

In June 2025, the Philippine National Oil Company (PNOC) convened the Bright Islands Encounter in Camiguin, gathering local officials, national agencies, and energy stakeholders to discuss sustainable power solutions for island provinces. The forum emphasized the urgent need to move away from costly diesel dependence, which continues to burden small grids like Camiguin with high generation costs and unstable supply.

Additionally, the PNOC has set its 2025 agenda to push energy solutions for off-grid areas like Camiguin. Representative Romualdo flagged the island’s dependence on coal power from Misamis Oriental, while PNOC and its partners planned a working group to drive investments, financing, and disaster-ready infrastructure.

Power on the Brink

Camiguin stands at a critical crossroads. Its booming tourism industry, accelerating economic growth, and growing population are straining an energy system long beset by outdated infrastructure, financial losses, and frequent outages. While initiatives like the submarine cable study and the push for local renewable projects provide hope, the island’s current power reliability remains insufficient for its ambitions and needs.

Officials and residents alike warn that without swift, concrete action, the energy shortfalls could undo the progress Camiguin has made. Local leaders have repeatedly stressed the island’s urgent need for stable and uninterrupted electricity, particularly for critical services like hospitals—power that must be reliable enough to safeguard livelihoods and sustain future growth.

Sources:

https://camiguin.gov.ph/where-to-go

https://en.wikipedia.org/wiki/Camiguin

https://rsso10.psa.gov.ph/content/camiguin-registers-fastest-economic-growth-110-percent-among-provinces-and-hucs-normin

https://www.sunstar.com.ph/cagayan-de-oro/tourism-in-camiguin-posts-37-growth-in-2024

https://newsinfo.inquirer.net/2055863/value-of-northern-mindanao-economy-tops-trillion-peso-mark

https://www.scribd.com/document/750575866/CAMELCO-2021-2030-PSPP

https://davaotoday.com/headline/house-to-probe-looming-power-crisis-in-camiguin

https://davaotoday.com/economy/solon-warns-camiguin-power-utility-losses-could-affect-the-islands-booming-tourism-industry

https://mirror.pia.gov.ph/news/2022/03/07/power-summit-addresses-energy-concerns-in-camiguin

https://www.philstar.com/business/2021/09/29/2130341/erc-orders-camiguin-bukidnon-ecs-stop-additional-charges

https://www.facebook.com/camelco1977