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Manila Bulletin devider Business devider The Economy devider DOE to launch enhanced 3rd microgrid CSP covering 167 underserved areas

DOE to launch enhanced 3rd microgrid CSP covering 167 underserved areas

Published May 27, 2025 03:46 pm

The Department of Energy (DOE) is gearing up for the third round of the Competitive Selection Process (CSP) for Microgrid System Providers (MGSPs), with refined policies and regulations aimed at ensuring more transparent, efficient, and investor-attractive microgrid operations.

In a statement on Tuesday, May 27, the DOE announced it would reveal the schedule for this enhanced third CSP by June, following the effectivity of the revised implementing rules and regulations (IRR) of the Microgrid Systems Act last May 13.

The 3rd CSP will initially cover 71 lots, encompassing 167 unserved and underserved areas nationwide. The promulgated IRR have streamlined CSP procedures, clarified provisions of the microgrid service contract and the responsibilities of stakeholders, and improved incentives for the provision of microgrid services.

According to the DOE, the awarding of a microgrid service area to a provider automatically designates the project as an Energy Project of National Significance (EPNS) under the revised IRR. This EPNS status ensures priority processing and swift agency approvals for the project.

“In addition, the notice of award will include a Renewable Energy Service Contract (RESC) for the RE components of the microgrid system, subject to the completion of remaining requirements, particularly the submission of proof of possessory rights over the service area,” the DOE added.

Furthermore, the DOE also highlighted flexible contractual terms and exemptions from certain financial obligations, which will be detailed in the notice of award and formalized in the Microgrid System Provider Service Contract with the National Power Corporation (NPC).

Energy Undersecretary Rowena Guevara said that this third CSP for MGSPs would help increase total electrification.

“By streamlining regulatory procedures, introducing policy innovations, and strengthening coordination across government and the private sector, we are sending a clear signal: the Philippines is ready and open for sustainable microgrid investments. Through these efforts, we aim to empower our most remote communities with clean, reliable, and affordable energy, because energy access is not just a policy objective—it is a fundamental right,” she said.

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