MANILA -More than 15,000 households in remote areas are expected to benefit from the government’s first competitive bidding for the development of microgrid systems scheduled in December, the Department of Energy (DOE) announced on Sunday.
This is in line with the recently released 2023-2032 National Total Electrification Roadmap (NTER), which outlines the agency’s plans to ensure 100-percent electrification by the end of President Marcos’ term in 2028.
Microgrid systems are smaller networks that are usually attached to the national grid but are still able to function independently. These are ideal for remote areas that are either totally without electricity or have limited access to supply.
The initial auction will cover 98 unserved and underserved areas, according to the DOE.
An ‘unserved area’ refers to any area without electricity access, distribution system lines, individual home system or connection to any microgrid system. ‘Underserved’ areas, meanwhile, do not have 24/7 access to power despite being served by a microgrid system or distribution utilities.
Under Republic Act No. 11646, or the Microgrid Systems Act of 2022, a competitive selection process must be conducted before a microgrid system provider can serve off-grid areas. This can be done through auctions or unsolicited proposals.
The law likewise requires distribution utilities to submit their local total electrification road maps and list of underserved areas.
91% electrification
Data from the DOE show that as of this year, 2.45 million out of 27.73 million households across the Philippines remain without access to reliable electricity. This means only 25.81 million households have power, equivalent to 91.15-percent electrification.
This year, the agency aims to provide electricity access to 536,585 unserved households through regular connections.
In 2024, the DOE seeks to serve an additional 698,232 households, 7,307 of which will have electricity access through microgrid systems.
Others will be served through distribution line extension and establishment of standalone home systems.
The number of households in the Philippines is expected to reach 29.49 million in 2028.
“The DOE is committed to ensure a transparent, fair and competitive selection process in choosing winning [microgrid system providers] capable of efficiently and effectively carrying out electrification in these areas,” the DOE said in a statement.
The NTER requires microgrid systems to meet the peak demand of the proposed service area for the duration of the cooperation period, which will lapse after 20 years from the date of commercial operations.
A microgrid system provider may be any private corporation, local government unit, cooperative, nongovernment organization, generation company or distribution utility that are able to comply with “the relevant technical, financial and other requirements as prescribed under the competitive selection process.” INQ