The Department of Energy (DOE) of the Philippines has announced plans for a third microgrid auction.

The competitive selection process will feature at least 71 lots covering 167 unserved and underserved areas, with microgrid system providers invited to bid for electrification in each lot. The auction schedule is expected to be announced by the end of next month.

The country’s first microgrid auction took place in November 2023, with contracts awarded in April 2024. The second auction followed during the second half of last year.

The DOE says that during the third auction, providers awarded a microgrid service area will automatically qualify for an Energy Project of National Significance, allowing necessary permits and licenses to be fast tracked.

The department has added that it will also introduce more flexible contractual terms and exemptions from certain financial obligations.

Undersecretary Rowena Cristina L. Guevara said the third auction round “marks a pivotal step in our push for 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,” Guevara added.

The Philippines had 2.97 GW of cumulative installed solar capacity by the end of 2024, up from 1.8 GW in 2023, according to the latest data from the International Renewable Energy Agency (IRENA).