The Department of Energy (DOE) is about to complete the guidelines under which so-called microgrid service areas will be sold to investors at auction.
DOE undersecretary Rowena Guevara, at the sidelines of the Giga Summit hosted by the Manila Electric Co. in Makati City on Wednesday, said the completed set of rules should be out this year.
Care had been taken so that the final set benefits not only the entrepreneur who wishes to invest but more importantly the consumer who pays for the service.
A micro grid is the term used for a limited network of electricity users with a local source of supply that can function even if it is not connected to the national grid.
The first to go under the gavel, Guevara said, are off-grid areas of the country rated as the best market for microgrid service providers.
This criteria, she said, is based solely by strictures under the Microgrid Systems Act signed by President Ferdinand Marcos Jr. only last year.
“We have 120 islands that are not connected to the grid but not all of them will already be included in the auction. Since this is the first time, we have to see if how many can be accommodated. We are still completing the list of those who want to participate,” Guevara said.
According to her, a notice of auction will be released within the year alongside the auction design or format as several developers looking to participate are not yet ready with their key permitting documents.
Guevara said requests for microgrid services come from unserved or underserved areas but noted some localities are not yet ready with the requirements, particularly the technical data that justifies the feasibility of operating such such a system.
Under the Microgrid Systems Act, microgrid system providers (MGSPs) provide integrated power generation and distribution services in an unserved or underserved areas such as islands and places that have no access to power distribution lines, no access to electricity and no home power systems for the duration of a service contract.
MGSPs can be cooperatives, local government units, non-government organizations, private corporations, power generation companies or distribution utilities compliant with the technical, financial and relevant other requirements.
MGSPs under the law are not considered a public utility and will not be required to secure a franchise from Congress.
But they need to obtain authority to operate as such from the Energy Regulatory Commission.
