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Manila Bulletin devider Philippines devider National devider Gatchalian urges investors to finance microgrid development in Philippines

Gatchalian urges investors to finance microgrid development in Philippines

Published Jun 3, 2024 04:53 am

Senator Sherwin Gatchalian on Monday, June 3 called on investors to provide capital for the development of microgrids in the country to help the Philippines achieve full electrification.

“Electrification is usually followed by economic development and the government in partnership with the private sector should aim to provide power for unserved and underserved areas in Mindanao,” said Gatchalian.

Gatchalian, the principal author of the Microgrid Systems Act, which aims to promote the use of microgrid systems for rural electrification in the country, urged investors to help especially in off-grid areas.

For one, the senator said Mindanao consistently has the lowest electrification rate among the major grids, with only 80.25% as of 2023.

Meanwhile, electric cooperatives in Mindanao, which cover 84 percent of total households in the region, only have a corresponding electrification rate of 78.98 percent.

In contrast, Luzon’s electrification rate is at 97.54 percent as of 2023 while the rate in Visayas is at 92.36 percent.

Overall, the Philippines has a total electrification rate of 92.75 percent.

The lawmaker also cited the partnership between state-run National Power Corp. and the Maharlika Consortium for the provision of microgrids in Cebu, Quezon, and Palawan provinces.

The contract signed with Maharlika Consortium covers 8 unserved areas in these three (3) provinces.

“We are encouraged to see investors taking an interest in the development of microgrids in Luzon and Visayas. We hope to see the same level of interest for the establishment of microgrids in Mindanao,” Gatchalian said.

He pointed out microgrid service providers do not need a congressional franchise to operate.

Likewise, unserved or underserved areas shall be deemed waived by the distribution utility involved of its obligation to provide distribution services and connections to end users and supply electricity to the area concerned.

Such areas, he said, are given priority for low-cost, indigenous, renewable, and environment-friendly sources of energy.

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microgrid systems Sherwin Gatchalian microgrid systems act
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