The Philippines Department of Energy (DOE) has awarded contracts for eight microgrids in unserved areas, including Hybrid PV System with Solar Battery Storage, as well as diesel gensets, to form Standalone Battery Storage for the off-grid areas.
The contract concludes the first competitive MGSP-SBAC selection process. It has been awarded to the Maharlika consortium, which consists of Manila-based Maharlika Clean Power Holding, joint venture firm CleanGrid Partners, and WEnergy Global, a Singapore-based solar battery storage company.
The consortium will provide 24/7 electricity services to eight areas in the provinces of Cebu, Quezon and Palawan. Electricity will be provided through hybrid microgrid systems composed of solar, Battery Energy Storage System (BESS), and diesel gensets.
The systems are expected to start operations no later than 18 months after the execution of Stand Alone PV System service contracts. Electricity rates will be subject to approval from the Energy Regulatory Commission (ERC), said the DOE. It said a 20-year subsidy will be provided under the "Universal Charge for Missionary Electrification" plan to ensure affordability.
The DOE is now planning a second competitive MGSP-SBAC round this year, including plans for new unserved areas, as well as areas that did not received any proposals in the first round.
The process will follow the country's Microgrid Systems Act, which mandates a competitive selection process before authorizing microgrid services providers in off-grid areas. The legislation provides a 90-day timeline from pre-qualification to contract submission to the ERC.
As part of the Philippine Energy Plan, the government aims to provide electricity to all the country's households by 2030.
