THE National Electrification Administration (NEA) has underscored the importance of mini-grid systems to help achieve a target of 100 percent electrification of households by 2022.
NEA Administrator Edgardo R. Masongsong said during the second day of the Philippines Mini-grid Business-to-Business (B2B) forum that the progressive electrification of areas not yet interconnected to the main electricity grid and too remote for grid extension has mainly been achieved through installation of decentralized generation units with diesel generation sets and, to a lesser extent, via systems using a local renewable-energy (RE) resource, such as solar photovoltaic (PV) stand-alone systems.
Solar factor
IN the House of Representatives, meanwhile, Deputy Speaker Arthur C. Yap said a measure seeking to grant a franchise to a 100-percent Filipino corporation providing electric power through the use of mini-grid systems by tapping solar and other RE sources is meant to supply cheap and clean electricity on a 24/7 basis to communities that want better electric service across the country,
Yap, who is the principal author of the bill granting the Solar Para Sa Bayan Corp. (SPSB) a franchise to “construct, install, establish, operate and maintain distributable power technologies and mini-grid systems,” appealed to those opposing this consumer-friendly measure not to use the outmoded Electric Power Industry Reform Act in preventing new players from providing cheap, reliable power to poor communities through green technologies, which is in step with the Duterte administration’s goal of total electrification by 2022.
According to Yap, the House Committee on Legislative Franchises chaired by Palawan Rep. Franz Alvarez had ensured that several safeguards in the grant of the SPSB franchise were in place before it had approved the bill for plenary consideration.
These included the nonexclusivity of the franchise and the prohibition on its sale, lease and transfer, said Yap.
“In fact, the bill clears the way for other new players to apply for their own nonexclusive franchises,” Yap said “It is a measure specifically designed to break the existing monopolies of traditional utilities that have otherwise fallen behind in improving the quality of their service.”
Yap said that the hearings conducted by the committee were extensive enough to convince over 100 lawmakers so far to signify their support for the franchise bill.
Mini-grid systems
Masongsong added: “While solar home systems for dispersed households have limited ability to serve growing energy demand, mini-grid systems, on the other hand, offer a potential solution for communities without grid access.”
The NEA chief noted, though, that high up-front costs often make this approach prohibitive. “Nevertheless, in increasing universal access to energy, these communities need a flexible, stable and reliable electricity supply for a sustainable socioeconomic development in these far-flung villages,” he added.
The Philippines has set a target of 100 percent electrification of households by 2022. The archipelagic characteristic of the Philippines poses the biggest challenge to the country’s rural electrification program. As of 2017, over 2 million households are still without access to electricity service. The remoteness of many areas, especially small islands scattered within the archipelago and the isolated communities upland, makes it impossible for all potential consumers to be connected to the main electricity grid.
“Given the constraints in providing reliable and adequate electrification service in remote and isolated areas, as well as assuring power supply sufficiency in the ECs franchise, the NEA wants to encourage the electric cooperatives to pursue the use of mini-grids and distributed generation,” Masongsong added.
Department of Energy (DOE) Senior Undersecretary Jesus Cristino Posadas, on behalf of Secretary Alfonso G. Cusi, encouraged forum participants to focus on innovative electrification solutions not only to help expand electricity services but also ensure the most reliable and cost-effective technologies and services to the unserved and underserved areas as the country scales up the utilization of clean energy.
The forum aims to identify opportunities for investments in rural electrification through mini-grids and renewable energy, share knowledge of innovative technical solutions and link key players in the Philippine energy sector with international mini-grid experts and potential financiers.
Power up
The event was organized by the DOE and Alliance for Rural Electrification (ARE) with the support of the European Union through its Access to Sustainable Energy Programme (Asep).
“In line with the Asep objectives, we are optimistic that such partnerships will assist the government in its objective to expand sustainable energy generation and increase the power supply for remote communities in the Philippines,” said Dr. Ernesto Terrado, Key Expert-Rural Electrification-Asep.
Marcus Wiemann, executive director of Alliance for Rural Electrification, stressed that mini-grids are stimulators for rural development.
“We are delighted that the Philippines is working to connect its rural population through clean energy mini-grids and as the voice of the off-grid private sector. ARE members, with their long-standing experiences in this field, can help fill this gap,” he said.