The Department of Energy (DOE) is gearing up for its inaugural competitive selection process (CSP) to meet the administration’s mandate for nationwide electrification, designed to attract investors interested in electrifying 15,645 households in remote and underserved areas through microgrid installations.
Scheduled for the fourth quarter of 2023, the awarding of contracts is set to happen in the first quarter of 2024, DOE said in a report by the Manila Bulletin.
The bidding process will encompass 98 unserved and underserved areas, grouped into 49 lots across remote areas.
The core criteria for the CSP include providing continuous 24/7 electricity, integrating a minimum of 35 percent renewable energy sources, and presenting the most cost-effective solution for the specified areas.
Aligned with the government’s electrification goals, the DOE has launched the National Total Electrification Roadmap (NTER) to attract investments for electrification projects, especially in off-grid regions not connected to the main power grids.
According to the outlined framework, areas without any electricity access, distribution lines, home power systems, or microgrid connections, will be prioritized for private sector investments, in line with the Microgrid Systems Act or Republic Act 11646.
Underserved areas are defined as locations with existing electricity connections, distribution lines, and home power systems, but they lack consistent round-the-clock electricity supply.
To adhere to the Microgrid law, the energy department mandates the execution of a CSP before a microgrid system provider can serve off-grid areas. In compliance with this law, distribution utilities are required to submit their local total electrification roadmaps and lists of underserved areas.
Moreover, 1.3 million of these households are situated in areas not yet linked to distribution and transmission systems, demanding alternative solutions.
The DOE emphasizes its commitment to conducting a transparent, fair, and competitive selection process to choose capable Microgrid Service Providers (MGSPs) for efficient electrification in these areas during the upcoming auction.
