Philippines DOE awards microgrid development to Maharlika consortium

The Department of Energy (DOE) has taken a significant step towards improving energy access in underserved areas with the conclusion of the 1st round of competitive selection process (CSP) for Microgrid Systems Service Providers (MGSP). The Maharlika Consortium, consisting of Maharlika Clean Power Holdings, Corp., CleanGrid Partners Pte Ltd., and WEnergy Global Pte Ltd., emerged as the winning bidder and will develop microgrid systems in eight unserved areas across Cebu, Quezon, and Palawan provinces.

These microgrid systems, comprising solar photovoltaic panels, energy storage systems, and diesel gensets, will provide 24/7 electricity services to the designated areas within 18 months of the Consortium’s execution of the Microgrid Systems Service Contract (MSC) with the National Power Corporation (NPC). The ceremonial signing and turnover of the Notice of Award took place on April 2, 2024, at the DOE Main Office in Taguig City.

The rates for electricity in these areas will be subject to approval by the Energy Regulatory Commission (ERC) and will receive subsidies under the Universal Charge for Missionary Electrification (UCME) for a period of twenty years. Additionally, the DOE plans to conduct the 2nd round of MGSP-CSP within the year to cover new areas and those with no proposals received during the 1st round.

The bidding process is guided by Republic Act No. 11646, or the Microgrid Systems Act of 2022, which mandates the implementation of a CSP before an MGSP is authorized to operate in off-grid areas. The DOE collaborates with relevant stakeholders to validate unserved and underserved areas, ensuring alignment with the goal of delivering sustainable and reliable energy solutions to communities in need.

The MGSP initiative contributes to the administration’s commitment to achieving 100 percent electrification targets, facilitating economic growth and development in remote regions.