MANILA, Philippines — State-run National Power Corp. (Napocor) and the Maharlika Consortium have teamed up to install microgrid systems in Cebu, Quezon, and Palawan provinces.
Napocor said the microgrid systems service contract signed with Maharlika Consortium—a joint venture of homegrown Maharlika Clean Power Holdings Corp. and Singapore-based firms CleanGrid Partners Pte Ltd. and WEnergy Global Pte Ltd.—covers eight unserved areas in these three provinces.
The consortium will construct a hybrid microsystem with solar photovoltaic, energy storage system and diesel generating sets.
Napocor said the universal charge for missionary electrification (UCME) would cover the cost of energizing these areas, subject to the Energy Regulatory Commission’s (ERC) approval of the rates.
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UCME is one of the components of an electricity bill levied on electricity end-users connected to the power grid. It finances the missionary electrification programs and projects of Napocor.
Competitive selection process
In April, the Department of Energy announced that the Maharlika Consortium had won the first round of the competitive selection process for microgrid systems service providers.
The DOE said the consortium “passed the criteria set for the auction” even if it was the sole entity that submitted offers among the nine entities that had signified interest in developing microgrid systems.
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It said Maharlika’s proposal adhered to the terms of reference of the bidding, as well as Republic Act No. 11646 or the Micro Grid Systems Act and its implementing rules and regulations.
Microgrid Systems Act of 2022 mandates the conduct of bidding before authorizing any entity to put up microgrid systems in off-grid areas. It provides a 90-day timeline from prequalification to submission of contract to the ERC.
The DOE earlier said it would improve the terms and streamline processes to encourage greater participation from the private sector.