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Davao Light And Power Company’s sitio electrification program is driving increased economic activity in Davao City, as the ripple effects of wider energy access are being felt by households and micro, small, and medium enterprises (MSMEs) around the area. A distribution utility of Aboitiz Power Corporation, Davao Light And Power Company, has been focusing its efforts in previously underserved remote areas, where many residents have been enjoying the benefits of electrification.
Mary Jane Sampiano, a sari-sari store owner in Sitio Kiman-anao in Barangay Salapawan, Paquibato District, has seen her earnings increase since Davao Light’s electrification program. “The availability of electricity in our area really had a big impact, especially for small entrepreneurs like myself,” she said.
Before the electrification program reached their area, Mary Jane and her husband Boyet ran their small sari-sari store by sheer determination, first relying on lighters and solar lamps, and later on a fuel-powered generator. While they dreamed of expanding, the high cost of fuel kept their income modest and their operations limited.
Everything changed in February 2025 when their store was finally connected to the grid. Daily earnings surged from less than ₱100 when they started in 2017 to more than ₱1,000 today, powered by the appliances and equipment they can now operate with ease.
“With a refrigerator, we are now able to sell more ice and cold drinks,” Mary Jane said. “Today, we also provide a Wi-Fi connection, as well as lamination, printing, and photocopying services.” The couple has also installed lights, electric fans, and CCTV cameras.
Powering Economic Activity
Reliable electricity brings convenience, real security, and opportunity for growing businesses and the community. According to a study conducted by the Department of Energy (DOE), eight hours of electricity access increases income by 15.8% and spending by 14.8%. When given 24-hour access to electricity, the numbers surge even further: income increases by 56.3%, while spending spikes to 59.4%.
Higher household incomes translate to increased spending on essentials such as food, healthcare, education, and safety, creating a multiplier effect that strengthens local economies. As communities move from limited or no power access to full electrification, residents and small businesses are able to invest in equipment that enhance productivity and operational efficiency, such as refrigerators, cooking appliances, computers, printers, air-conditioning units, and security systems.
The impact goes beyond individual households. Schools and health facilities are better equipped to serve their communities, while improved public services contribute to greater security and quality of life. Electrification, in turn, becomes a catalyst for broader social and economic development.
Expanding Potential
We find another instance of this effect in Sitio Katandungan, Barangay Baganihan in Davao City’s Marilog District, where resort owners Jojo and Socorro “Korina” Masanegra have lived through the area’s energy transition firsthand. For years, they relied on a noisy, fuel-hungry generator and solar panels that often faltered, especially when fogged. Power meant regular three-kilometer trips just to buy fuel.
Then in 2023, the sitio was finally connected to the power grid. With reliable electricity, the couple expanded what was once a single cabin that could host just ten guests to a mountain retreat that features more accommodations, plus a larger swimming pool equipped with an electric pump and treatment system. The result is a higher income paired with lower operating costs.
The arrival of electricity has also sparked new business activity across Baganihan. When the electrification program reached the barangay in April 2023, aspiring restaurateur Vincent Clark Canlas seized the moment. “Reliable power is essential for every aspect of a restaurant; from preserving the freshness of ingredients in refrigeration to cooking each dish to perfection and providing a welcoming atmosphere with proper lighting,” he said.
Vincent applied for a Davao Light connection and, in March 2024, opened Retro, his dream restaurant. Now serving as both owner and executive chef, Vincent employs ten residents from the local community. “Knowing the electrification program was in place gave me the confidence that this dream could thrive without interruption,” he said.
Aligned With Sustainable Development Goals
Designed to spur rural development and reduce poverty, the government’s sitio electrification program seeks to bring power to remote barangays and underserved communities by linking them to the electrical grid. The initiative aims to give households and small businesses a fair shot at growth by ensuring reliable access to electricity.
Davao Light has been at the forefront of this effort within its franchise area since 2018, expanding service to isolated communities and advancing the United Nations Sustainable Development Goals on affordable, clean energy (SDG 7) and reduced inequalities (SDG 10). Over 200 remote sitios have already been energized, with just 66 more—around 1.73%—still awaiting connection. On a broader scale, all barangays under the Davao Light franchise now have access to electricity, while household electrification stands at 97.61%.
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