To help accelerate the country’s electrification program, the Department of Energy (DOE) is creating an auction of unserved areas for interested microgrid system providers (MSPs).
In a report by BusinessMirror, Energy Undersecretary Rowena Cristina Guevara said that 120 islands are still not connected to the grid, adding that this move needs to be done under the Micro Systems Act.
Under Republic Act No. 11646 or the “Act of Promoting the Use of Microgrid Systems to Accelerate the Total Electrification of Unserved and Underserved Areas Nationwide”, the DOE was tasked to issue its implementing rules and regulations.
Guevara said that the auction for the candidate areas for the microgrid will likely happen this year.
Under the draft rules, the DOE defines a microgrid system as an integrated power generation and distribution system whether or not it is connected to a distribution or transmission system.
Before the auction, the DOE will be releasing the list of unserved areas – all of which will undergo a Competitive Selection Process (CSP). Winning bids will be awarded a contract to provide integrated power generation and distribution service to an unserved or underserved area.