The Philippines Department of Energy (DOE) has awarded contracts for eight microgrids in unserved areas, including hybrid systems with solar and energy storage, as well as diesel gensets. Plans are now underway for a second competitive bidding round to develop microgrids in other areas without electricity access.

The DOE of the Philippines has awarded contracts to develop microgrid systems in eight unserved areas of the country through its Microgrid Systems Service Provider – Special Bids and Awards Committee (MGSP-SBAC).

The contract concludes the first competitive MGSP-SBAC selection process. It has been awarded to the Maharlika consortium, which consists of Manila-based Maharlika Clean Power Holding, joint venture firm CleanGrid Partners, and WEnergy Global, a Singapore-based renewable energy company.

The consortium will provide 24/7 electricity services to eight areas in the provinces of Cebu, Quezon and Palawan. Electricity will be provided through hybrid microgrid systems composed of solar, energy storage systems, and diesel gensets.

The systems are expected to start operations no later than 18 months after the execution of microgrid system service contracts. Electricity rates will be subject to approval from the Energy Regulatory Commission (ERC), said the DOE. It said a 20-year subsidy will be provided under the “Universal Charge for Missionary Electrification” plan to ensure affordability.

The DOE is now planning a second competitive MGSP-SBAC round this year, including plans for new unserved areas, as well as areas that did not received any proposals in the first round.

The process will follow the country’s Microgrid Systems Act, which mandates a competitive selection process before authorizing microgrid services providers in off-grid areas. The legislation provides a 90-day timeline from pre-qualification to contract submission to the ERC.

As part of the Philippine Energy Plan, the government aims to provide electricity to all the country’s households by 2030.

In November 2023, the Maharlika Consortium won a contract to build a pair of hybrid microgrid projects on Panlaitan island and the island of Mindoro.