THE DEPARTMENT of Energy (DoE) said it hopes to provide electricity to 167 unserved and underserved areas through the third round of bidding for microgrid system providers (MGSPs).
“This third round of MGSP-CSP marks a pivotal step in our push for total electrification,” Energy Undersecretary Rowena Cristina L. Guevara said in a statement on Tuesday.
The schedule for the auction is expected to be announced by the end of June.
For the third round, the DoE said it has enhanced the policy and regulatory framework governing microgrid service operations “to create a more transparent, efficient, and investor-friendly environment for interested private investors.”
Republic Act No. 11646, or the Microgrid Systems Act of 2022, mandates the DoE to conduct a competitive selection process (CSP) for potential concessionaires seeking to serve off-grid areas.
The DoE recently revised the implementing rules and regulations (IRR) of the law, streamlining CSP procedures, clarifying provisions of the microgrid service contract and the corresponding responsibilities of stakeholders, and enhancing incentives for microgrid service provision.
Under the revised IRR, the award of a microgrid service area to a provider will automatically qualify the project as an energy project of national significance, allowing concerned entities to fast-track the issuance of necessary permits and licenses.
Additionally, the notice of award will include a renewable energy service contract for the renewable energy components of the microgrid system, “subject to the completion of remaining requirements, particularly the submission of proof of possessory rights over the service area.”
“By streamlining regulatory procedures, introducing policy innovations, and strengthening coordination across government and the private sector, we are sending a clear signal: the Philippines is ready and open for sustainable microgrid investments,” Ms. Guevara said.
“Through these efforts, we aim to empower our most remote communities with clean, reliable, and affordable energy, because energy access is not just a policy objective — it is a fundamental right,” she added.
The first MGSP auction was conducted in 2023, in which only one firm out of nine prequalified bidders submitted a complete bid proposal.
In the second round, only one proponent expressed interest and was later deemed prequalified. However, Ms. Guevara earlier told BusinessWorld that the bidding failed as the only prequalified bidder was unable to submit a complete bid proposal by the set deadline.
Ms. Guevara previously said the potential market for MGSPs includes over 200 sites with economic growth potential if given access to electricity.
The 2023-2032 National Total Electrification Roadmap targets 100% electrification by 2028, the end of the Marcos administration’s term. — Sheldeen Joy Talavera
