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MANILA, Philippines — President Rodrigo Duterte has signed into law a measure promoting the use of microgrids in an attempt to accelerate electrification and provide electricity in underserved areas in the country.
Republic Act No. 11646, which was signed by Duterte on Jan. 21 but released to the media on Monday, allows microgrid system providers (MGSPs) to provide integrated power generation and distribution services to distribution utilities in an unserved or underserved area for the duration of its service contract.
MGSP refers to a natural or juridical person whose business includes installation, operation, and maintenance of microgrid systems.
The MGSPs are not considered as public utility operators, which they “shall not be required to secure a franchise from Congress.”
They should instead secure an authority to operate (ATO) from the Energy Regulatory Commission prior to its operation.
Under the new law, any party including private corporations, local government units, cooperatives, non-governmental organizations, power generation companies and their subsidiaries, distribution utilities that can comply with the technical, financial and other relevant requirements may be considered an MGSP.
The new law also removes the need for MGSPs to seek waivers from existing distribution utilities to provide electricity to unserved and underserved areas as identified by the Department of Energy.
The measure mandates the ERC to provide a simplified and streamlined application process for MGSPs.
It also tasks the commission to develop, establish, and promulgate the minimum technical and service performance standards for microgrid systems which shall be compliant with the Philippine Distribution Code, Philippine Small Grid Code and other relevant rules and regulations.
The ERC will be responsible for monitoring the compliance of all MGSPs with their obligations under their respective ATOs.