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Samal Island entered a new chapter in its power supply in April 2025 with the launch of a submarine cable linking it directly to Davao City. The infrastructure enables the delivery of up to 50 megawatts (MW) of electricity, offering a reserve four times beyond the island’s present consumption levels.
Developed by Davao Light, the submarine cable project was a cornerstone of Davao Light’s entry into Samal Island. Several months later, members of the local business community say the investment is already making a difference.
During a recent radio interview, entrepreneurs described how the shift from the Northern Davao Electric Cooperative (NORDECO) to Davao Light has improved service reliability, giving businesses greater confidence to grow and attracting renewed interest in the island’s economic potential.
“Napakalaki ng kumpyansa na binibigay nito sa amin, upang pwede kaming magdagdag ng investment, magpalaki ,at ipagyabang ang serbisyo namin sa mga taga-Samal at taga-Mindanao, at sa buong Pilipinas,” declared Paradise Island Park and Beach Resort owner Julian Rodriguez. (This gives us great confidence to increase investments, expand our operations, and proudly showcase our services to the people of Samal, Mindanao, and the entire Philippines.) “Dati, talagang napakahirap, napakabigat… dahil alam mo at any given time, pwedeng mawala ang power.” (Before, it was very difficult and burdensome because at any given time, the power could go out.)
For Florence Valera, owner of Farmers V Resto & Grill, stable electricity meant the ability to better care for its business and employees. “Yung dating ina-allocate namin sa maintenance— bili ng bagong freezer, bagong aircon dahil laging nasisira, ngayon po, we can give po more benefits to our people. Dati, walang outing, limited…pwede na kaming magdagdag ng sweldo nila.” (What we used to allocate for maintenance—buying new freezers, new air conditioners, because they kept breaking down—now we can give more benefits to our people. Before, there were no outings, everything was limited… now we can even increase their salaries.”)
(Also read: Why a Balanced Energy Mix Is Now Critical for the Philippines)
Shifting to Davao Light
In February 2026, a regional trial court enforced a writ of possession granting Davao Light control of Samal’s distribution assets, including poles and power lines previously operated by NORDECO.
While NORDECO challenged the Act before the Supreme Court, seeking to block its implementation on grounds that it violated its existing franchises in mainland areas until 2028 and in Samal Island until 2033, the Court upheld the law’s constitutionality. It dismissed the petitions, ruling that the law’s title sufficiently reflected its purpose despite arguments over provisions on asset valuation and related financial mechanisms, and effectively allowed implementation to proceed by denying the request for a temporary restraining order.
Persistent concerns over electricity reliability had long shaped conditions in Samal Island, with residents, businesses, and local officials frequently citing unstable supply and recurring outages that disrupted daily life and economic activity.
Then-Mayor Al David Uy estimated that the island had been incurring annual losses of ₱120 million to ₱150 million since the 2010s due to ongoing power issues under NORDECO. He said the prolonged disruptions had constrained business expansion, discouraged investment, and slowed economic growth for more than a decade, with effects already visible in reduced commercial activity across key sectors.
To help address rising demand and recurring outages, NORDECO had earlier proposed a ₱1.1-billion submarine cable project, including a 69-kV underwater line from Pantukan to Samal Island. Although initially scheduled for completion in early 2023, the project was never carried out.
Rodriguez stressed that for a resort, reliable electricity is fundamental. He said that in the past, even minor voltage fluctuations would force them to immediately switch to a generator, as guest experience had to be prioritized despite the high operational costs, which significantly ate into expenses.
“If you run on a genset, regardless of how many people you have coming in, or how many rooms you have occupied, the genset cost (of electricity) is the same. So, paano mo ma-o-offset yun kung sampung guests lang and tumatakbo ang genset mo at a fixed cost. Pero yung electricity, kung ano ang gamit mo, yun lang ang babayaran mo ‘pag may power provider ka,” he explained. (If you rely on a genset, the cost is fixed no matter how many guests or occupied rooms you have.
So how do you offset that if you only have ten guests, but the genset is running at a fixed cost? With a power provider, you only pay for what you actually consume.)
Meanwhile, Valera, whose restaurant specializes in fresh seafood and produce, relies heavily on chillers, freezers, and other cold storage systems. Under NORDECO’s unreliable power supply, frequent outages not only led to food spoilage but also drove up electricity costs.
“Imagine n’yo before, in the restaurant, I’m paying as high as almost 28 (thousand) a month, ‘di naman fully airconditioned yun,” she shared. (Before, in the restaurant, I was paying as high as almost ₱28,000 a month, even though it wasn’t fully air-conditioned.) Now, for a 31-day cycle, I would just pay 17 or 16,000.”
Currently, Valera’s restaurant is carrying out repairs and renovations, including welding work that was previously not possible due to unstable electricity. It can also now accept card payments, as reliable power has made internet connectivity feasible—something that was difficult before, when providers were hesitant to service the area due to concerns that their equipment could be damaged by power fluctuations.
(Also read: Energy Transition or Energy Illusion?)
A Brighter Chapter for Samal
The Davao-Samal Submarine Interconnection spans 1.25 kilometers across the Pakiputan Strait and carries 69 kilovolts (kV) of power. Designed not merely as a backup but as Samal’s primary power source, the cable was built for long-term reliability, with reinforced protection and burial beneath the seabed to guard against risks such as ship anchors.
For the island’s business community, it signals a shift from business as usual to business with new possibilities. With the Samal Island-Davao City Connector Bridge also nearing completion in 2027, expectations are rising for stronger connectivity, increased economic activity, and renewed growth across the island.
“Nagpapasalamat ako sa Davao Light kasi mukhang maliwanag na ang pagnenegosyo.Tamang-tama, papasok na po ang tulay natin. Malaking improvement ito sa negosyo natin sa Samal. We expect business on a 24-hour basis,” said Rodriguez. (I am thankful to Davao Light because doing business now looks brighter. The timing is perfect, as the bridge is about to open. This is a major improvement for business in Samal. We expect operations to run on a 24-hour basis.”)
For Valera, the power transition has brought greater peace of mind. “They are really helping us improve the lives of the people. Nagkakaroon na kami ng business confidence.” (We have gained business confidence.)
Often, electricity is taken for granted until its absence makes its value unmistakable. For Samal Island, years of unreliable supply underscored how deeply power is tied not only to comfort, but to productivity, investment, and opportunity. What once disrupted daily routines and business operations is now being redefined as a foundation for growth.
Beyond keeping the lights on, stable electricity enables progress to multiply across communities—supporting livelihoods, strengthening enterprises, and improving the quality of life for those who depend on it. For Samal, long celebrated for its tropical beaches and idyllic charm, reliable power now signals the possibility of finally reaching its fuller economic potential, where growth and tourism can better translate into lasting benefits for its residents.
Sources:
https://newsinfo.inquirer.net/2214344/samal-island-secures-50-mw-power-via-submarine-cabl
https://www.facebook.com/share/v/194sV875Hr
https://www.sunstar.com.ph/davao/nordeco-challenges-davao-light-franchise-expansion-at-supreme-court
https://www.sunstar.com.ph/davao/supreme-court-upholds-davao-light-expansionhttps://www.sunstar.com.ph/davao/mayor-samal-loses-p120-p150m-yearly-due-to-unresolved-power-woes
https://www.sunstar.com.ph/davao/davao-samal-submarine-cable-launched-to-stabilize-power
https://mb.com.ph/2026/05/09/davao-light-revives-an-island-ready-to-thrive
