MANILA – President Rodrigo Duterte has signed into law a bill that will urge the development of microgrid in unserved and underserved communities throughout the country in order to accomplish the government’s objective of 100 percent electrification in the Philippines.
Republic Act 11646, or the Microgrid Systems Act, was signed into law on January 21, based on the documents issued on Monday by Malacañang.
The law intends to accelerate total electrification and assure 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 permitted to operate in any area where there is no electricity access or where the power connection does not provide a continuous supply of electricity.
The law requires the Department of Energy (DOE) to identify unserved and underserved areas for electrification and service by prospective MGSPs.
It also establishes a streamlined process for MGSPs with clear timelines and severe penalties for bureaucratic red tape and delay.
It also eliminates the requirement for MGSPs to obtain waivers from distribution utilities in order to provide distribution services, end-user connections, and supply electricity to the affected area.
Distribution utilities may engage in the business of MGSPs in unserved and underserved areas under the law, provided that a separate account is maintained for such business undertaking.
