NextGen Day

President Rodrigo Duterte has signed a bill into law that will encourage the development of microgrids in unserved and underserved communities around the Philippines in order to meet the government’s objective of 100 percent electrification.

The Microgrid Systems Act, or Republic Act 11646, was signed into law on January 21, according to documents provided by Malacanang on Monday.

Through the implementation of microgrid systems by licensed Microgrid Service Providers, the law aims to speed total electrification and assure the provision of quality, dependable, and secure energy service at reasonable rates in unserved and underserved areas (MGSPs).

The MGSPs will be authorized to function in any place where there is no electricity or where the power supply is not available 24 hours a day, seven days a week.

The Department of Energy (DOE) is required by law to identify unserved and underserved areas for electrification and service by potential MGSPs.

It also streamlines the procedure for MGSPs, with defined timetables and harsh penalties for bureaucratic inefficiency and delays.

It also eliminates the need for MGSPs to get exemptions from distribution utilities in order to provide distribution services, end-user connections, and power to the affected area.

Distribution utilities are permitted by law to engage in the business of MGSPs in unserved and underserved areas, as long as a separate account is kept for such operations.

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