The Maharlika Investment Corp. (MIC) has joined a multi-agency initiative to modernize Mindoro’s fragile power infrastructure, a move aimed at reducing island-wide outages and preparing the off-grid system for eventual commercial self-sufficiency.
The partnership brings together the MIC, National Power Corp. (NAPOCOR), National Transmission Corp. (NTC), and National Electrification Administration (NEA) after more than a year of technical collaboration on solutions for the Mindoro Small Grid.
The island’s power system currently runs on a single-loop, 69-kilovolt network, making it vulnerable to widespread disruptions whenever a major fault occurs. The joint initiative seeks to address these structural weaknesses by upgrading the grid into a more resilient and sectionalized network.
Under the framework, the MIC will serve as a strategic investor, financing and helping implement a comprehensive modernization plan for Mindoro’s transmission system.
As part of its mandate, the MIC will fund technical studies to determine a cost-effective rehabilitation strategy. It will also explore the purchase, rehabilitation, and upgrade of off-grid transmission assets currently held by NAPOCOR.
The modernization plan is expected to include improved line accessibility, stronger grid monitoring technologies, and system upgrades designed to reduce the risk of island-wide blackouts.
“These interventions are designed to lay the groundwork for Mindoro’s eventual interconnection with the national grid,” the MIC said.
Beyond improving reliability for Mindoro consumers, the project is also expected to help reduce national power subsidy requirements.
Mindoro currently draws a significant share of the Universal Charge for Missionary Electrification, a subsidy shouldered by electricity consumers nationwide to support power supply in off-grid areas.
The MIC said reducing system losses and moving the Mindoro Small Grid toward commercial viability could ease the subsidy burden and eventually help lower electricity costs for consumers across the country.
“By reducing system losses and advancing the Mindoro Small Grid toward commercial viability, the project aims to lower overall government subsidy requirements, ultimately reducing electricity costs for consumers nationwide,” the MIC said.
The initiative forms part of broader efforts to strengthen energy infrastructure in underserved areas while making off-grid power systems more sustainable, reliable, and less dependent on long-term subsidies.