Duterte enacts law promoting microgrid systems to ramp up electrification

President Rodrigo Duterte has signed into law the bill encouraging the establishment of microgrids in a bid to supply electricity to unserved and underserved areas across the country.

Republic Act 11646 allows microgrid system providers (MGSPs) to provide integrated power generation and distribution services to distribution utilities in an unserved or underserved area for the duration of its service contract.

The MGSPs are not considered as a public utility operators. This means the system providers “shall not be required to secure a franchise from Congress.”

The law only requires MGSPs to secure an authority to operate (ATO) from the Energy Regulatory Commission prior to its operation.

Under the measure, any private corporations, local government units, cooperatives, non-governmental organizations, power generation companies and their subsidiaries, distribution utilities that can comply with the technical, financial and other relevant requirements may be considered an MGSP.

Furthermore, RA 11646 removes the need for MGSPs to seek waivers from existing distribution utilities to provide electricity to unserved and underserved areas as identified by the Department of Energy.

The law also mandates the ERC to provide a simplified and streamlined application process for MGSPs.

It directs the commission to develop, establish, and promulgate the minimum technical and service performance standards for microgrid systems which shall be compliant with the Philippine Distribution Code, Philippine Small Grid Code and other relevant rules and regulations.

The ERC shall also be responsible for monitoring the compliance of all MGSPs with their obligations under their respective ATOs. -- BAP, GMA News