DOE seeks investors for microgrid expansion in underserved areas


The Department of Energy (DOE) is encouraging investors to develop microgrid solutions to ensure reliable energy supply in underserved and unserved areas of the country.

At the Microgrid Systems Provider (MGSP) Investment Forum on Tuesday, Jan. 28, Energy Undersecretary Rowena Christina Guevara emphasized the need to electrify 200 underserved areas. 

"These households represent communities that have long been left behind in our nation's energy development journey, yet hold significant potential for economic growth if given access to electricity," she said.

The DOE offers several investment incentives, including income tax holidays, duty-free importation of equipment and materials, renewable energy (RE) cash incentives for missionary electrification, special real property tax rates, and zero value-added tax (VAT) rates.

Guevara announced the winners of the first round of the MGSP Competitive Selection Process. 

"The DOE awarded eight lots to the Maharlika consortium, covering Carnaza and Gibitngil in Cebu, Carlagan and Bongliw in Quezon, and Bacau, San Juan, and Katep in Palawan. The consortium will provide 24-hour electricity service to 3,106 households in these areas," she said.

Investing in microgrids offers numerous benefits, including boosting local economies through job creation and entrepreneurship, and promoting environmental sustainability by reducing carbon emissions.

Citing data from the Philippine Statistics Authority (PSA), the Department of Health (DOH), and the DOE, Guevara explained the correlation between household electrification and economic growth. 

"Improving electricity access from eight to 16 hours can potentially increase income and expenditure by about 33 percent, and increasing it from 16 to 24 hours can potentially increase income and expenditure by about 50 percent." This potential growth, she added, could offset approximately P100 billion in total electrification costs.

"We are committed to working with stakeholders across the energy sector—government agencies, private investors, technology providers, and local communities—to create an enabling environment for microgrid investment," Guevara concluded.