Microgrid auction to unlock P27 billion energy investments

MANILA, Philippines —  The Department of Energy (DOE) expects its microgrid auction to draw up to P27 billion in investments and bring electricity to more than 100,000 households in remote areas.

Luningning Baltazar, director of the DOE’s Electric Power Industry Management Bureau, said 101,468 unenergized homes across 23 provinces stand to benefit from microgrid investments.

“Our archipelagic nature requires extensive effort in terms of electrifying the many islands that we have. Part of the solution would be the implementation of microgrid (systems),” Baltazar said at the 2026 Philippine Energy Investment Forum yesterday.

The DOE has initially identified 369 areas across the country that remain unserved or underserved.

These include communities in Antique, Basilan, Bohol, Cagayan, Camarines Norte, Camarines Sur, Cebu, Davao Occidental, Dinagat Islands, Eastern Samar, Lanao del Sur, Marinduque and Masbate.

The list also covers unenergized homes in Negros Occidental, Northern Samar, Palawan, Quezon, Southern Leyte, Sulu, Surigao del Sur, Tawi-Tawi, Samar and Zamboanga del Sur.

Republic Act 11646 requires a competitive selection process before microgrid service providers can supply electricity to unserved and underserved areas.

Unserved areas lack access to power, while underserved areas have electricity but receive less than 24 hours of supply each day.

Despite their potential to bring electricity to remote communities, microgrids continue to face technical, financial and regulatory hurdles.

In particular, Baltazar said financing gaps remain a major constraint to microgrid development, citing limited government resources and weak private-sector appetite for such projects.

“There’s no financial support in terms of the actual infusion of capital from the government,” she stressed.

Reliance on diesel generators has also contributed to high electricity costs in some microgrid-served areas.

The Philippines currently has 11 operational microgrid systems serving more than 9,000 households. These systems have a combined capacity of 2,561 kilowatts from solar, 7,057 kW from diesel generators and 2,287 kWh of battery storage.

Speaking before industry stakeholders yesterday, Energy Secretary Sharon Garin highlighted the need to build investment pathways to reach households beyond the main electricity grid.

“Our microgrid policies support the development of power systems in geographically isolated and underserved communities, where decentralized energy solutions can bring reliable electricity to more Filipino households,” Garin said.