A lawmaker is pushing for the deployment of microgrids to achieve 100 percent electrification nationwide by 2022.
Under Senate Bill 1928, or the proposed Microgrid Systems Act, microgrid systems providers will be allowed to operate in any area where there is either no electricity access at all or where the power connection does not provide 24/7 electricity supply.
Sen. Sherwin Gatchalian, who is also the chairman of the Senate Energy Committee, said the measure would provide round-the-clock electricity supply to “unserved” and underserved” areas.
Unserved areas are those with no electricity access while underserved areas are currently served by distribution utilities whose supply of electricity is less than 24 hours daily.
The National Electrification Administration (NEA) reported that there are 12, 672 unelectrified on-grid sitios as of June while there are 5,262 identified off -grid and remote areas for electrification as of November this year.
To fast-track the installation of microgrids, the bill simplifies the government permitting process and expedites specifically for microgrid systems the already-accelerated permitting process under Republic Act 11234 or the Energy Virtual One Stop Shop Act reducing the applicable time frames by half.
NEA proposed a budget of P1.7 billion to cover for next year’s electrification of 1,153 sitios.
“If the same amount is given by the national government every year, then it would take close to 10 years to electrify all these sitios. These sitios are bound to increase due to population growth,” said Gatchalian.
Gatchalian also said the installation of microgrids would also spare the government billions of pesos in spending as it will allow private investors to enter the market.
“A hundred percent electrification will have an enormous impact on reducing energy poverty and help improve the overall quality of life of millions of Filipinos living in far-flung rural areas,” he said.
Meanwhile, NEA Administrator Edgardo Masongsong reaffirmed the agency’s commitment to complete its electrification program.
However, he said, the agency needs additional government subsidy to implement the Sitio Electrification Program in the coming years.
The NEA and all 121 electric cooperatives (ECs) have identified several measures in order to meet the full energization target by 2022.
These include accessing the Energy Regulation No. 1-94 program, availing foreign grants and donations, using internally generated funds of ECs, or entering into a qualified third party agreement.
“Under the Qualified Third Party program, ECs can waive a part of their unviable areas to qualified private investors,” Masongsong said, adding that if there are no takers, the National Power Corp. may implement these projects through missionary electrification.