THE Department of Energy (DoE) said it estimated the number of remote areas ripe for microgrid investments at over 200 underserved and unserved locations.
“The are over 200 areas that need microgrid system developers,” Energy Undersecretary Rowena Cristina L. Guevara said in her keynote speech during Microgrid System Provider (MGSP) Investor Forum on Tuesday.
“These underserved and unserved households represent communities that have long been left behind in our nation’s energy development journey, yet hold so much potential for economic growth if given access to electricity,” she added.
The bill for full electrification has been estimated at about P100 billion, with P75 billion going to the electric cooperatives supervised by the National Electrification Administration and about P25 billion to the National Power Corp.
Increasing access to electricity could unlock a potential increase in income and spending of up to 50%, she said, potentially contributing P314 billion a year to the economy, equivalent to 1.8% of gross domestic product.
“Where can you find an investment of P100 billion that produces over P300 billion? Only in electrification,” Ms. Guevara said.
Ms. Guevara said: “We are committed to working with stakeholders across the energy sector, government agencies, private investors, technology providers, and local communities to create an enabling environment for microgrid investment.”
Republic Act No. 11646, or the Microgrid Systems Act of 2022, tasks the DoE with conducting a competitive selection process for potential service providers for off-grid areas.
In 2023, the DoE conducted the first MGSP auction, with nine prequalified bidders and only one — the Maharlika Consortium — turning in complete bid proposals.
The Maharlika Consortium is composed of Maharlika Clean Power Holdings Corp., Singapore’s CleanGrid Partners Pte. Ltd., and WEnergy Global Pte. Ltd.
As the winning bidder, the consortium will provide 24/7 electricity services to eight locations in Cebu, Quezon, and Palawan via a hybrid microgrid system consisting of solar photovoltaic, energy storage system, and diesel generator set.
The DoE announced last year that it will hold the second round MGSP auction for 41 sites identified as unserved and underserved.
The identified areas have a combined 12,212 households, and were part of the service areas offered to bidders during the first round in 2023. — Sheldeen Joy Talavera
