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Duterte signs Microgrid Systems Act into law

Philippines | National

Duterte signs Microgrid Systems Act into law

By Argyll Cyrus Geducos

President Duterte has signed into law the measure that promotes the use of microgrid systems to accelerate the total electrification of underserved and unserved areas nationwide.

President Rodrigo Duterte (MalacaÃ±ang photo)

Duterte signed Republic Act (RA) No. 11646 or the Microgrid Systems Act on January 21, 2022.

A microgrid is a group of interconnected loads and decentralized power generation with clearly defined electrical boundaries that acts as a single controllable entity with respect to the distribution, sub-transmission, or transmission grid, as the case may be.

The new law aims to accelerate total electrification and ensure the provision of quality, reliable, and secure electricity service at reasonable rates in unserved areas or those with no electricity access and underserved areas which are currently served by distribution utilities whose supply is less than 24 hours daily through the installation of microgrid systems by accredited Microgrid Service Providers (MGSPs).

It mandates the Department of Energy (DOE) to declare said areas for electrification and service by prospective MGSPs.

The DOE is likewise authorized to streamline the process for the competitive selection of MGSPs but microgrids are not classified as public utilities. This allows any party to establish them without the need of a franchise from Congress provided that they do not subsidize their MGSPs.

Related Tags

President Duterte new law ELECTRIFICATION microgrid systems act microgrid

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