The Department of Energy (DOE) is ramping up efforts to reach full household electrification through microgrids and solar home systems, aligning with President Ferdinand R. Marcos Jr.’s directive in his 2025 State of the Nation Address.

To energize areas beyond the reach of power distributors, the DOE will conduct a Competitive Selection Process (CSP) for Microgrid System Providers. Around 12,000 off-grid households in Quezon, Camarines Norte, Palawan, Masbate, Samar, Negros Occidental, and Zamboanga del Sur are targeted under this initiative.

“These microgrid systems, each equipped with self-contained power generation units and localized distribution networks, are designed to provide reliable and sustainable electricity in areas that existing distribution utilities (DUs) and electric cooperatives (ECs) can no longer reach,” the DOE said.

In areas already within the coverage of DUs and ECs, the DOE has identified 2.018 million households that may be energized through regular service applications. To fast-track these connections, especially for indigent and low-income consumers, the DOE and National Electrification Administration (NEA) are coordinating with the Department of the Interior and Local Government (DILG) to simplify permitting and potentially waive related local fees.

To reach households completely inaccessible to distribution lines, the government is deploying solar home systems (SHS), each capable of powering four LED bulbs, a radio, and charging mobile phones.

NEA aims to energize 100,000 households using SHS until Q1 2026, and will conduct early procurement for 54,000 more systems for 2026, bringing the two-year target to 154,000 households. Installation is fully subsidized, with beneficiaries covering only operation and maintenance costs.

In support of these goals, the DOE urged host DUs to tap the PHP 1.5 billion available under the Energy Regulations 1-94 Electrification Funds to speed up electrification in their franchise areas.

The DOE and NEA are also working with the Department of Education to power 295 last-mile schools through solar energy, under DepEd’s PHP 1.295 billion allocation for 2025. Each school installation is designed to support digital learning tools including tablets, televisions, and other devices.

As of December 2024, the country’s household electrification level stood at 94.75%, or 27.9 million households. Around 3.08 million households still need to be connected by 2028 to meet the 100% target.

“The DOE, guided by the President’s clear call for universal energy access, remains steadfast in its mission to achieve 100% household electrification, ensuring that no Filipino household, school, or community is left in the dark,” the agency said.

What’s your take on the DOE’s microgrid and solar strategy? Join the conversation.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.