12K households to benefit from DOE’s microgrid auction | Power Philippines

The Department of Energy (DOE) is set to initiate another round of the competitive selection process (CSP) to develop microgrid systems aimed at electrifying remote areas of the country. This initiative is expected to benefit approximately 12,212 households.

In a report by the Philippine Star, the DOE said it will open the auction in the first week of August, inviting interested bidders to participate in the electrification of 41 lots, which include 75 identified unserved and underserved areas across the Philippines. These areas are part of the 98 identified regions clustered into 49 lots, previously offered during the first round of CSP in November 2023.

According to the DOE, these areas are deemed viable for microgrid system providers (MGSPs) due to their higher demand and the fact that most households are not widely dispersed. 

The department emphasized that the second round of the MGSP-CSP will adhere to a streamlined and transparent process, enabling MGSP proponents to survey the areas and prepare their proposals accordingly.

Submission of expression of interest and pre-qualification will be until the fourth week of August. The opening of technical and financial bid proposals will be by the fourth week of September. DOE will issue the notice of award by the first week of December. 

Under Republic Act 11646, also known as the Microgrid Systems Act of 2022, a CSP must be conducted before an MGSP can serve off-grid areas.

The 2023–2032 National Total Electrification Roadmap identifies 407 areas in the country that either lack or have limited access to electricity. Of these, 285 are unserved, comprising 20,103 households, while 122 are underserved, with a total of around 20,207 households.

Unserved areas have no access to electricity, distribution system lines, home power systems, or any microgrid system, whereas underserved areas have power supply for less than 24 hours daily.

The DOE highlighted that these remote areas have economic activities that necessitate sufficient electricity services.

In the first auction, the DOE awarded eight lots in the provinces of Cebu, Quezon, and Palawan to the Maharlika Consortium, which includes Maharlika Clean Power Holdings Corp., Singapore-based CleanGrid Partners Pte Ltd., and WEnergy Global Pte Ltd. As the first winning MGSP, the consortium is expected to provide uninterrupted electricity services to these areas through a hybrid microgrid system composed of solar photovoltaic, energy storage systems, and a diesel generator.