DOE starts first bidding for microgrids

MANILA, Philippines — The Department of Energy (DOE) has kicked off activities for the first-ever bidding for the development of microgrid systems in the country.

The DOE has published an invitation to interested parties to bid by participating in the competitive selection process (CSP) for the microgrid systems provider (MGSP).

The winning MGSPs will be in charge of the construction, installation, maintenance and operations of microgrid systems to provide electricity services around the clock for all existing and projected households in selected remote areas.

Their services will also include associated services such as customer billing and collections.

Parties interested to bid for the conduct of MGSP-CSP are given until Nov. 15 to submit their notarized expression of interest.

Deadline of submission of complete proposal and opening of bids is set on Dec. 27, while the issuance of notice of award is eyed by March 12 next year.

The DOE said the bidding will cover 98 unserved areas and underserved areas clustered into 49 lots located in remote areas across the country.

The initial auction is expected to benefit a total of 15,645 households.

The DOE said it is committed to ensure a transparent, fair and competitive selection process in choosing winning MGSPs capable of efficiently and effectively carrying out electrification in these areas.

Unserved areas are defined by the DOE as those with no electricity access, distribution system lines, individual home system or connection to any microgrid system.

Underserved areas refer to places where electricity services are less than 24 hours, and are served by individual home system, microgrid system or distribution utilities.

Republic Act 11646 or the Microgrid Systems Act of 2022 mandates the conduct of a CSP before an MGSP can serve off-grid areas.

The DOE said based on the 2020 census of population and household projections, 1.3 million households are located in areas that are not yet connected to the distribution and transmission systems, thus requiring alternative solutions.