DOE issues first microgrid systems award

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The Department of Energy (DOE), via its Microgrid Systems Service Provider– Special Bids and Awards Committee (MGSP-SBAC), has concluded the inaugural round of the competitive selection process (CSP) for the MGSP.

The Maharlika Consortium, which comprised Singapore-based firms WEnergy Global Pte Ltd. CleanGrid Partners Pte Ltd., and Maharlika Clean Power Holdings, Corporation, was awarded for microgrid systems development in eight unserved areas located in Quezon, Palawan, and Cebu.

The consortium will provide round-the-clock electricity services to the areas via a hybrid microgrid system made up of an energy storage system, solar photovoltaic, and diesel genset. 

The DOE also emphasized that for the timely construction and operation of microgrid systems, it should be within 18 months from the Consortium’s execution of the Microgrid Systems Service Contract (MSC) with the National Power Corporation.

The rates to be levied would be subjected to the approval of the Energy Regulatory Commission (ERC) and would also be allotted a 20-year subsidy under the Universal Charge for Missionary Electrification (UCME).

In related developments, the energy department is preparing for the second round of the MGSP-CSP this year, which would include new areas as well as those that did not receive any proposals during the first round.

The bidding would be directed by Republic Act No. 11646, or the Microgrid Systems Act of 2022. This legislation mandated the conduct of a CSP before granting authorization for MGSP operations in off-grid areas. 

Additionally, it set forth a 90-day timeline from pre-qualification to contract submission to the ERC.

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