Senator Christopher “Bong” Go on Monday welcomed the signing into law of the measure that promotes the use of microgrid systems as it would help accelerate the total electrification in unserved and underserved areas in the country.

President Duterte has signed Republic Act No. 11646 or the "Microgrid Systems Act" or an act which promotes the use of microgrid systems last Jan. 21, 2022. The law, which was publicized today at the Official Gazette, encourages the establishment of microgrids that prioritizes the use of low-cost, indigenous and renewable sources of energy.

“Dahil archipelago ang Pilipinas, maraming remote areas ang hindi pa naaabot ng kuryente (Because the Philippines is an archipelago, there are many remote areas that still do not have power supply),” Go noted.

“Kaya mabuti at inaprubahan ni Pangulong Duterte ang batas na ito para ma-achieve natin ang 100 percent household electrification rate sa lalong madaling panahon (That’s why we welcome President Duterte’s signing into law of this measure so we can achieve a 100 percent household electrification rate at the soonest time possible)” the senator said.

The law grants microgrid system providers (MGSPs) the opportunity to provide integrated power generation and distribution services in an unserved or underserved area for the duration of its service contract.

MGSPs need not secure a franchise from Congress as under the law, they would not be considered a public utility and would only need to obtain an Authority to Operate (ATO) from the Energy Regulatory Commission (ERC) prior to their operation.

Under the law, the Department of Energy (DOE) is mandated to identify and declare an annual list of unserved and underserved areas in cooperation with the National Electrification Administration (NEA).

The law also mandates the ERC to provide a simplified application process for MGSPs. It also directs the ERC to establish the minimum technical and service performance standards which shall be compliant with the Philippine Distribution Code, Philippine Small Grid Code and other relevant rules and regulations.

The ERC shall also be responsible for monitoring the compliance of all MGSPs with their obligations under their respective ATOs.

"Maraming mga kababayan natin ang naghihirap dahil sa krisis dulot ng COVID-19. Sa pamamagitan ng batas na ito, mas mabibigyan ang bawat bahay ng access sa kuryente (Many of our people are facing a crisis due to COVID-19. With this law, we can ease their burdens by providing each home access to electricity),” he said.

“In turn, we will also improve their living conditions and assist in the development of their communities,” Go said.