The electrification and rise of MSMEs in previously underserved areas in Davao City
- AboitizPower’s Davao Light implements the Sitio Electrification Program

The Department of Energy has determined that access to consistent and reliable electricity does change lives and livelihoods for the better. In a study, it was found that with eight hours of access, income and spending rise by 15.8% and 14.8%, respectively. Further improved to full 24-hour access, income surges by 56.3% while spending grows by 59.4%, reflecting how productivity and commerce are maximized when electricity is readily available at the flick of a switch.
Higher incomes enable higher spending, which is ideally used for health, food, education, safety, and leisure — showing a multiplier effect of the initial benefits. In fact, from little to no access, the shift to complete electrical availability is replete with stories of people adopting cold storage, cooking appliances, air conditioners, security cameras, computers, and printers, just to name a few, raising their productive capacity and efficiency. This is not to mention better equipped schools, hospitals, and public services, particularly enhanced public safety through the erection of street lights and the like.
These have been observed by Davao Light and Power Company, a distribution utility of Aboitiz Power Corporation, within its service area in Davao City, where it is helping unlock the potential of previously underserved remote areas — from households to micro, small, and medium enterprises — through the sitio electrification program.
“The availability of electricity in our area really had a big impact, especially for small entrepreneurs like myself,” recounted mom-and-pop store owner Mary Jane Sampiano in the vernacular. “Our earnings increased!”
Prior to the sitio electrification program reaching Sitio Kiman-anao, Barangay Salapawan, Paquibato District, Mary Jane and husband Boyet operated their small neighborhood sari-sari store using lighters and solar-powered lighting, before eventually making use of a power generator set. Despite having had the chance to expand their humble business, income was weighed down by the fuel costs.
When their store was finally connected to the grid in February 2025, their daily income increased significantly — from less than P100 when they began in 2017 to over P1,000 today — owing to the electric-powered appliances and devices they can now fully utilize.
“With a refrigerator, we are now able to sell more ice and cold drinks. Today, we also provide a Wi-Fi connection, as well as lamination, printing, and photocopying services,” Mary Jane said. Light bulbs, electric fans and CCTV cameras have also been installed in her store.

More business owners like Mary Jane are now afforded with better prospects thanks to the sitio electrification program and distribution utilities like Davao Light. In Sitio Katandungan, Barangay Baganihan, Marilog District, married couple and resort owners Jojo and Socorro “Korina” Masanegra experienced the transition from using a noisy, costly power generator set and intermittent, sometimes fog-ridden solar panels to finally having a connection to the power grid in 2023. The pair no longer had to travel three kilometers just to procure fuel, as energy was available on the spot.
Their retreat initially had only one small cabin fit for a maximum of ten guests, but now has more lodging and a larger swimming pool with an electric pump and treatment for cleaning. As a result, income had gone up while operating costs had gone down.
At the same time, the sitio electrification program has also encouraged more small investors to set up shop in these newly energized sitios. When it reached barangay Baganihan in the highland district of Marilog in April 2023, Vincent Clark Canlas turned his dream of establishing his own restaurant into reality.
“Dreams require practical foundations,” Vincent said. “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.”

Vince applied for a power connection with Davao Light and opened the Retro in March 2024. As restaurant owner and executive chef, he’s employed and led ten individuals straight from the local community.
“Knowing the electrification program was in place gave me the confidence that this dream could thrive without interruption,” he pointed out.
With the objective of rural development and poverty reduction, the sitio electrification program is a project by the national government of the Philippines that aims to connect far-flung barangays and underserved rural areas to the electrical grid of distribution utilities, thereby providing access to households and local businesses.
Davao Light has been extending electricity services to far-flung communities within its franchise areas since 2018, supporting United Nations Sustainable Development Goals 7 (Affordable and Clean Energy) and 10 (Reduced Inequalities). To date, more than 200 remote communities have already been reached, with 66 more sitios (1.73%) left to be energized. On a barangay level, the Davao Light franchise area is 100% electrified, while the completion rate for the household level is at 97.61%.
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