President Rodrigo Duterte has signed into law a measure that will spur microgrid development in unserved and underserved areas nationwide to achieve the government’s goal of 100 percent electrification in the Philippines.
Republic Act 11646 or the Microgrid Systems Act was signed into law last January 21, documents released by Malacañang on Monday showed.
The law aims to accelerate total electrification and ensure the provision of quality, reliable, and secure electricity service at reasonable rates in unserved and underserved areas through the installation of microgrid systems by accredited Microgrid Service Providers (MGSPs).
The MGSPs will be allowed to operate in any area where there is no electricity access or where the power connection does not provide 24/7 electricity supply.
The law mandates the Department of Energy (DOE) to declare unserved and underserved areas for electrification and service by prospective MGSPs.
It also creates a streamlined process for MGSPs with clear timelines and stiff sanctions for bureaucratic red tape and delay.
It also removes the requirement of obtaining waivers from distribution utilities for MGSPs to provide distribution services and connections to end-users and supply electricity to the area concerned.
Under the law, distribution utilities may engage in the business of MGSPs in unserved and underserved areas, provided that a separate account is maintained for such business undertaking.
