In a bid to accelerate the government’s electrification program, the Department of Energy (DOE) is now crafting the best way to auction unserved areas to interested microgrid system providers (MSPs).
“We have 120 islands that are not connected to the grid. We have to determine first the list of the areas that would be placed under the microgrid auction. We will issue a notice of auction within the year,” said DOE Undersecretary Rowena Cristina Guevara on the sidelines of the Giga Summit organized by the Meralco Power Academy. “We have to do this because there is a micro grid law,” she added.
Under Republic Act no. 11646 entitled “An Act Promoting the Use of Microgrid Systems to Accelerate the Total Electrification of Unserved and Underserved Areas Nationwide,” also known as Microgrid Systems Act, the DOE was tasked to issue the implementing rules and regulations.
“We will auction this year the candidate areas for the micro grid,” added Guevara.
Based on the draft rules, the DOE defines a microgrid system as an integrated power generation and distribution system whether or not connected to a distribution or transmission system.
Prior to the planned auction, the DOE will release the unserved areas, which will then undergo a Competitive Selection Process (CSP) wherein an entity would be awarded the contract to provide integrated power generation and distribution services to an unserved or underserved area through a transparent and competitive procedure, such as, but not limited to, an auction, unsolicited proposal, or Swiss challenge, taking into consideration the requirements of the Microgrid Systems Act and other applicable laws.
President Ferdinand R. Marcos Jr., in his second State of the Nation Address, said full energization of the remaining unenergized areas should be completed by 2028.
