5 December 2025
Advancing Hybrid Renewable Energy Adoption Among Mindanao’s Off-Grid Electric Cooperatives
Advancing Hybrid Renewable Energy Adoption Among Mindanao’s Off-Grid Electric Cooperatives
Alvin Prado, Associate
Nian Sayoc, Senior Associate
Ruth Reyes, Marketing Associate
5 December 2025 – Davao City, Philippines – Off-grid electric cooperatives (ECs) from across Mindanao are signaling a strong and growing appetite for transitioning to cleaner energy despite facing challenges, one of several clear messages that emerged during a Workshop on Hybrid Renewable Energy System Planning and Development co-organized by Climate Smart Ventures (CSV) on November 26 at the Seda Abreeza Hotel in Davao City.
This workshop marks the third leg of a regional workshop series under a three-year program launched in 2023 that aims to accelerate energy transition among off-grid ECs. A total of 43 participants attended, representing ECs, regulators, government agencies, private sector participants, and energy innovators.
Key Highlights from the Workshop
A few key priorities highlighted by participants include the following:
- Scaling hybrid renewable energy system (HRES) solutions as part of long-term ECs strategies to improve power reliability and reduce electricity costs for consumers.
- Considering biomass potential for dependable generation from agricultural residues while supporting local livelihoods and improving waste management.
- Advancing grid modernization through ongoing efforts such as Supervisory Control and Data Acquisition (SCADA) deployment, grid digitalization, and more.
- Grid infrastructure development, such as submarine cable installations to connect off-grid islands to the main grid, as well as additional substations and distribution lines.
Program and Partners
The workshop was convened by CSV together with the Tara Climate Foundation, the Philippines’ National Electrification Administration (NEA), the Department of Energy (DOE), the Institute for Climate and Sustainable Cities (ICSC), and other partners, with support from the Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) and the Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO).
Despite the geographical challenges faced by many off-grid ECs in Mindanao, the workshop successfully convened participants from ECs, highlighting their strong commitment to adopting renewable energy (RE) solutions, particularly through smart grid integration. EC representatives included key leadership and technical personnel from the following:
- Davao del Sur Electric Cooperative, Inc. (DASURECO)
- Dinagat Island Electric Cooperative, Inc. (DIELCO)
- Northern Davao Electric Cooperative, Inc. (NORDECO)
- Sultan Kudarat Electric Cooperative, Inc. (SUKELCO)
- Sulu Electric Cooperative, Inc. (SULECO)
- Tawi-Tawi Electric Cooperative, Inc. (TAWELCO)
- Zamboanga City Electric Cooperative, Inc. (ZAMCELCO)
The event featured discussions on grid modernization and HRES, supported by actual case studies and technical deep dives. Topics included regulatory and policy updates, emerging technologies and hybridization strategies, best practices from the field, fundraising and investment mechanisms, and government initiatives supporting the energy transition of ECs. The workshop brought together the following distinguished speakers from both the public and private sectors:
- Engr. Silverio T. Navarro Jr., Senior Advisor, Climate Smart Ventures
- Engr. Rene Fajilagutan, General Manager, Romblon Electric Cooperative, Inc. (ROMELCO)
- Mr. Quintin Jose V. Pastrana, President, WEnergy Power Pilipinas, Inc.
- Engr. Marc Louie Olap, Chief Science Research Specialist, Total Electrification Administration and Management Division, Electric Power Industry Management Bureau, DOE
- Engr. John Paul S. Pagtalunan, Senior Engineer A – Renewable Energy Development Division, NEA
- Engr. Rommel U. Mamangun, Manager, Corporate Planning Department, Corporate Affairs Group, National Power Corporation
Insights and Next Steps
A key highlight of the event was the focus group discussions, where participants explored the workshop themes more deeply, shared experiences and challenges, and collaboratively envisioned pathways for grid modernization and HRES adoption in off-grid communities.
The discussions revealed that off-grid areas continue to struggle with expensive and unreliable diesel generation, often disrupted by natural disasters, volatile fuel supply chains, and security concerns. Despite existing subsidy mechanisms, ECs remain burdened by high generation costs and complex regulatory requirements.
Still, many ECs expressed a strong interest in scaling up RE solutions as part of their long-term strategy. Several already have solar home systems, small hydropower installations, and solar net metering programs within their franchise areas. There is a strong interest among the ECs in developing RE generation facilities, including distributed RE such as strategically located rooftop solar installations. Participants also emphasized the importance of transitioning to HRES to improve power reliability and reduce electricity costs. Biomass, in particular, surfaced as a promising option, offering not only reliable power generation from agricultural residues but also economic benefits for local communities and improved waste management.
Grid modernization also emerged as a priority. ECs shared ongoing initiatives, including SCADA deployment and grid digitalization. They also shared plans to improve their services through infrastructure development, such as submarine cable installation (where feasible) to connect off-grid islands to the main grid, as well as future installation of substations and distribution lines. Additionally, joint ventures with private developers were seen as a highly viable approach for implementing HRES, with financing support from NEA, commercial banks, and the Rural Electrification Financing Corporation (REFC). Ensuring project sustainability through community engagement, local livelihood integration, and local government support was also recognized as essential.
The workshop builds upon the Grid Modernization and Hybridization Guidebook released in 2024. Through programs like this, CSV continues to support off-grid ECs in accelerating clean energy adoption, improving system reliability, and building resilient, future-ready power systems for remote communities in the Philippines.
Moving forward, the project will continue to support various ECs through pilot initiatives, providing technical assistance for the planning and development of their HRES. These efforts will culminate in a major event in early 2026, showcasing the progress of the pilot projects and sharing key learnings to further accelerate RE adoption across off-grid communities.
About Climate Smart Ventures
Climate Smart Ventures (CSV) is an advisory firm advancing the energy transition in Asia. Our expertise and projects span coal to clean utility-level energy transition, industrial decarbonization, grid transformation, transition finance, and government-level policy recommendations. We also provide ESG and sustainability advisory services, focused on decarbonization and management of environmental and social impacts. Ecosystem building and collaboration are key elements of our firm, which partners closely with the region’s leading corporates and power portfolio owners, investors, off-takers, and others. For more information, visit https://climatesmartventures.com.