The Department of Energy (DOE) is set to bid under the competitive selection process (CSP) the country’s microgrid areas before the end of the year to boost the delivery of power even in off-grid places.
This coincides with the release of the 2023-2032 National Total Electrification Roadmap which identifies the unserved and underserved areas prioritized under the CSP.
Under the Microgrid Systems Act of 2022, the CSP is mandated before a microgrid system provider serves off-grid areas. The law also requires distribution utilities to submit their electrification roadmap and list of underserved localities in their franchise area.
A microgrid is 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 DOE said the initial CSP should happen before the year ends and the awarding of contracts within the first three months next year.
The agency said the bidding will cover 98 unserved and underserved areas clustered into 49 lots in remote areas of the country. A total 15,645 households are expected to benefit from the initial auction.The parameters observed in choosing the winning bidders at the CSP include the ability to provide 24/7 electrification, the incorporation of at least 35 percent renewable energy in their portfolio and least cost solutions for the consuming public.
The DOE said the 2020 census of population and households show government electrification effort will impact 3.7 million households of which 2.7 million are within the franchise areas of electric cooperatives.
The DOE also said at least 1.3 million of the 3.7 million households are located in areas not yet connected to the distribution and transmission systems which require alternative solutions such as microgrids.
