IN memory there is no proposed law than House Bill (HB) 8179, originally filed on September, 3, 2018, that has gained tremendous public support for immediate approval, generating Facebook posts of more than 20 million and drawing over 2 million likes, comments and shares.
The proposed bill grants Solar Para Sa Bayan (SPSB) a nonexclusive right to operate microgrids in “remote and unviable, or unserved or underserved areas in selected provinces of the Philippines.”
Once approved, SPSB will (1) enable projects without needing the consent of the existing utility, (2) covers underserved municipalities, (3) reduce approval requirements, (4) create an effective alternative, while respecting the rights of existing utilities and paving the way for others to offer better service to consumers.
Unlike the existing Qualified Third Party (QTP) program, which had energized just three barangays in 18 years and was highly supported with billions in government funds, the SPSB and its advanced technology can finally access cheaper, better service at zero cost to the government.
Various local government units have already validated concrete examples of the SPSB technology. Misamis Occidental Governor and former Tangub City Mayor Philip Tan were quoted by the media, thus: “For several years, Tangubanons experienced extended power outages and exorbitant energy prices. But, with the advent of the Solar Para Sa Bayan Project, these will now become a thing of the past.”
For his part, Mayor Shierwin Taay of Dingalan, Aurora, said: “We thank SPSB for fulfilling the dream of Dingaleños, by solving our power crisis and reducing the cost of
electricity. This is a great help for a town like ours to achieve a stronger economy and better life for our people.” Now operating in 12 towns, SPSB brings 24/7 electricity for the first time to over 200,000 Filipinos, at zero cost to the government. According to Pulse Asia Director Ana Maria Tabunda, support for new options for cheaper electricity is consistent across all demographics in Luzon, Visayas and Mindanao.
100% electrification by 2022
Should the bill become a law, SPSB’s commitment is clear. In a statement, it said: “We commit our utmost to support this administration’s goal of achieving 100 percent electrification and ending energy poverty by 2022, and do this without need for government subsidy.
“For decades, Philippine presidents have tried and failed to reach 100 percent nationwide electrification. Now, we have a solution, with the potential to energize the entire country by 2022, and add to the list of reasons why this administration will be remembered as the one that did the most to improve the lives of ordinary Filipinos.”
Amended version
HB 8179’s final version (1) Limits the scope to “remote and unviable, unserved, or underserved areas,” in selected provinces with less than 2 percent of the power demand of the Philippines, (2) Requires use of renewable energy, (3) Subjects the grantee to regulation by the Energy Regulatory Commission (ERC) and Department of Energy (DOE), pursuant to Electric Power Industry Reform Act (Epira), (4) Obligates the grantee to provide reliable service, with financial penalties, (5) Explicitly states the grantee “shall not be entitled to any government subsidy.”
In 2018, SPSB completed the largest Solar-Battery Microgrid in Southeast Asia at zero cost to the government. With solar panels, Tesla batteries, and backup diesel generators, it serves Paluan 24 hours a day, 365 days a year, at 50 percent below the full cost of the local electric coop.
Paluan Mayor Carl Pangilinan said: “Throughout our history, our town was denied service by the electric coop because of lack of supply in the whole Occidental Mindoro. Everything changed when Paluan sought Solar Para Sa Bayan to provide stable, cheap, clean energy. Our municipality now enjoys 24/7 electricity, which has opened new opportunities for Palueños.”
The DOE said SPSB now serves 24/7 power in over 12 towns, benefiting over 200,000 Filipinos. It has developed projects in 18 provinces and aims to support the DOE’s goal for the Philippines to achieve 100 percent electrification by 2022.
12 million Filipinos without electricity
According to the DOE, an estimated 12 million Filipinos lack access to electricity. This is despite the fact the Epira became law in 2001, with its primary objective “to ensure and accelerate the total electrification of the country.”
According to the National Electrification Administration, it still needs P25 billion to reach the country’s unenergized sitios. Curiously, the National Power Corp. spends over P20 billion a year serving missionary areas, mostly for less than 24 hours a day given the difficulties of serving off-grid areas.
Microgrid franchise
Despite all this, Occidental Mindoro Electric Cooperative has insisted that SPSB cease its operations because Paluan is part of OMECO’s franchise. In a statement, the Philippine Rural Electric Cooperatives Association said that its members would defend their “electricity franchise privileges” and “cannot be expected to peacefully yield their jobs anytime soon to the private sector.”
House Bill 8179 grants SPSB the nonexclusive right to operate microgrids in “remote and unviable, or unserved or underserved areas in selected provinces of the Philippines.” Unlike the existing QTP program, this franchise (1) Enables projects without needing the consent of the existing utility; (2) Covers underserved municipalities, not just unserved barangays; (3) Reduces permitting requirements; and (4) Creates an effective alternative, while respecting the rights of existing utilities and paving the way for others to offer better service to consumers.
HB 8179’s final version incorporates inputs of industry stakeholders from congressional hearings to ensure the franchise is highly regulated and compliant with Epira and the Constitution, respects existing franchises, and enables DOE and ERC to impose further safeguards. This imposes even greater restrictions on SPSB than existing utilities, limiting it to marginal areas and prohibiting it from receiving any government subsidy.
To reach the writer, e-mail cecilio.arillo@gmail.com.