The island’s primary power supplier, Sunwest Water and Electric Co. Inc., or SUWECO, is teetering on the brink of collapse, its operations hamstrung by frozen bank accounts and mounting debts.
As diesel reserves were expected to last only until December 15, widespread blackouts were due to start yesterday, aggravating the wounds from recent super typhoons like Pepito and Uwan. This crisis isn’t just about flickering lights — it’s a stark reminder of the vulnerabilities in the Philippines’ off-grid energy systems, where corruption, unpaid subsidies, and climate challenges collide.
At the heart of the present turmoil is SUWECO, a renewable energy firm founded in 2005 that has powered Catanduanes’ grid through a mix of hydroelectric, solar, and diesel plants. Serving as the main power provider for the First Catanduanes Electric Cooperative Inc., or FICELCO, which distributes electricity to over 61,000 households across 11 municipalities, SUWECO supplies the bulk of the island’s 22 MW peak demand.
But financial woes have eroded its stability. Earlier in 2025, SUWECO curtailed operations, imposing rotational brownouts of up to three hours daily, citing ₱538 million in unpaid obligations from the state-run National Power Corporation.
These subsidies are crucial, bridging the gap between true generation costs and affordable rates for consumers, who pay around ₱13.50 per kWh on average.
The situation escalated dramatically in late 2025 when the Sandiganbayan anti-graft court froze SUWECO’s assets amid corruption allegations against its owner, Elizaldy “Zaldy” Co, a former congressman. Co, who resigned in September and fled abroad, faces charges tied to overpriced flood control projects and Department of Education procurements, and more— scandals involving ₱100 billion in phony insertions in the national budget.
Declared a fugitive in November, Co’s legal troubles have ripple effects: SUWECO’s frozen accounts prevent fuel purchases and payroll, threatening a total halt in power generation.
This threatens island-wide outages that could cripple hospitals, schools, and businesses already reeling from November’s typhoons, which left 500,000 consumers in Catanduanes and elsewhere without power across affected areas.
FICELCO, a member-owned cooperative, is caught in the crossfire. With monthly revenues around ₱98 million from 7.2 million kWh in energy sales, it pays SUWECO about ₱40 million monthly under their Electricity Supply Agreement.
Yet, as SUWECO scales back, FICELCO must navigate rate hikes — up to ₱0.438 per kWh in some months — and implement load shedding to manage deficits. Residents express widespread concerns about economic stagnation in an island reliant on abaca farming, tourism, and fishing.
The crisis underscores broader issues in the Philippines’ missionary electrification program, where off-grid areas like Catanduanes depend on subsidized private generators, often vulnerable to political entanglements.
A missionary electrification program provides basic electricity services to remote, unviable, and off-grid areas. It aims to deliver power generation and distribution where connections to the national grid are absent or uneconomical.
Amid the urgency, short-term fixes are being scrambled. Appeals to the Department of Energy and NPC urge immediate intervention, such as exempting power assets from the freeze or a temporary takeover.
One solution is renting 5 MW gensets to bridge the gap. With peak demand at 22 MW, five such units — totaling 25 MW — could provide a buffer, ensuring reliability during maintenance or spikes. Costs are steep: Monthly rentals for these diesel-powered behemoths range from ₱23.4 million to ₱35.8 million, excluding fuel, which could consume 200–300 gallons per hour at full load.
Providers of these systems specialize in modular setups, deploying containerized units quickly to remote areas. In Catanduanes’ context, this could stabilize supply while FICELCO extends its bidding process to secure interim contracts.
However, the expense raises questions: Can FICELCO’s revenues absorb this without passing crippling rate increases to consumers? Subsidies from NPC might help, but delays in past payments fuel skepticism.
Looking beyond the immediate, long-term solutions pivot toward renewables, aligning with the Philippines’ Power Development Plan for 2023-2050 to boost green energy in off-grid zones. Catanduanes already hosts SUWECO’s assets like the Palumbanes Solar Hybrid System and Balongbong Hydroelectric Plant, but typhoons have damaged infrastructure, necessitating rehabilitation – upgrading dams, control systems, and transmission lines for resiliency. Building seawalls around plants and integrating more solar-wind hybrids could cut diesel reliance, lowering costs and emissions.
The CSP process aims to diversify suppliers, reducing dependency on SUWECO and inviting competitive bids for sustainable contracts. Nationally, initiatives like NGCP’s transmission upgrades, including the Western Luzon 500 kV Backbone by December 2025, could eventually connect Catanduanes to the main grid, though timelines stretch years.
Experts advocate for community-driven models: Microgrids powered by local renewables, supported by government incentives, could empower cooperatives like FICELCO. “Renewables aren’t just eco-friendly; they’re typhoon-proof with proper design,” noted a DOE official in recent briefings.
Yet, challenges persist —high upfront costs, regulatory hurdles, and the need for skilled labor. International aid, such as from the Asian Development Bank, has funded similar projects in other islands, offering a blueprint.
As Catanduanes stares down this blackout threat, the crisis spotlights the fragility of isolated energy systems in a climate-vulnerable archipelago. Genset rentals offer a lifeline, buying time for renewable overhauls that promise stability and self-sufficiency. But resolution demands transparency.
Bryce McIntyre, PhD, resides San Andres. He holds a doctoral degree from Stanford University, Palo Alto, California, USA. Grok AI was employed in research for this article.