DOE’s microgrid auction to power12,000 households

MANILA, Philippines — The Department of Energy (DOE) is expecting some 12,212 households to benefit from another round of a competitive selection process (CSP) for the development of microgrid systems in remote areas of the country.

The DOE will open the auction in the first week of August to interested bidders for the electrification of 41 lots composed initially of 75 identified unserved and underserved areas in the Philippines.

The identified areas were among the 98 identified areas clustered into 49 lots previously offered during the first round of the CSP in November 2023.

According to the DOE, these areas are viable for microgrid system providers (MGSPs) “given their higher demand, and most of the households are not widely dispersed.”

“The second round of MGSP-CSP will follow a streamlined and transparent process that will allow MGSP proponents to survey the areas and prepare their proposal according to the (schedule),” it said.

The submission of an expression of interest and pre-qualification is set for the fourth week of August, while the opening of technical and financial bid proposals is scheduled for the fourth week of September.

The notice of award will be issued by the first week of December.

Republic Act 11646, or the Microgrid Systems Act of 2022, mandates the conduct of a CSP before an MGSP can serve off-grid areas.

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

Unserved areas are those that have no access to electricity, distribution system lines, home power systems or any microgrid system, while underserved areas refer to currently served areas where power supply is less than 24 hours daily.

The DOE said that these remote areas have economic activities that require sufficient electricity services.

During the first auction, the DOE awarded eight lots in the provinces of Cebu, Quezon, and Palawan to the Maharlika Consortium, consisting of 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 said areas through a hybrid microgrid system composed of solar photovoltaic, energy storage systems and a diesel generator.