A consortium led by Climate Smart Ventures (CSV) launched a grid modernization and hybridization guidebook for off-grid electric cooperatives to help bring down power costs in rural areas.
The guidebook was developed as part of a three-year project being undertaken by the consortium to help facilitate the modernization of ECs’ respective grids while expanding their in-house capabilities to innovate by providing access to global trends in technology and financing.
“The project builds on the thrust generated by the DOE (Department of Energy) leadership towards a more ambitious climate goal and complements the government’s work in transitioning the country towards cleaner sources of energy while ensuring that our off-grid islands are not left behind and are given access to more affordable, reliable and cleaner electricity,” said CSV managing partner Lawrence Ang.
CSV is a transition advisory and transaction advisory firm based in Singapore focused on supporting asset owners and investors in accelerating their shift from fossil fuels to cleaner energy sources.
It works closely with multilateral organizations, development banks, and philanthropies to unlock resources to accelerate energy transition in emerging markets and developing economies.
The consortium, composed of CSV, Center for Empowerment, Innovation and Training on Renewable Energy (CentRE), Institute for Climate and Sustainable Cities (ICSC) and Mott MacDonald, supported by Tara Climate Foundation, launched the guidebook on March 15, 2024 at the Crowne Plaza Manila Galleria.
The project is being undertaken in consultation with the National Electrification Administration and the DOE.
CSV said off-grid and underserved on-grid areas are reliant on diesel power plants which are inefficient and dependent on imported oil, resulting to sub-standard service from ECs and high electricity costs for consumers.
“These areas are in urgent need for an accelerated energy transition – not just to reduce CO2 emissions but to improve quality of life,” the group said.
Meanwhile, Energy Regulatory Commission (ERC) chairperson Monalisa Dimalanta said the agency would roll-out a series of simultaneous public hearings in various off-grid islands to revisit and review the subsidized electricity rates.
The ERC intends to send a clear message that the government is pursuing genuine and sustainable growth given how important the issue of subsidies is to both off-grid and main grid consumers.
“By next week, we start a five-week series of simultaneous hearings in our off-grid areas to hear NPC’s [National Power Corp.] petition for new subsidized approved generation rates [SAGR]. The current SAGR was set in 2005 for the 14 first wave aeras and in 2011 for the rest of the 60 SPUG (Small Power Utilities Group) areas,” Dimalanta said.