The Department of Energy (DOE) has pre-qualified nine companies for the competitive selection process (CSP) for private sector investments on microgrids scheduled before the end of the year.
In an advisory yesterday, DOE identified these companies as DMCI Power Corp., Smart Power Solutions Corp., Alternative Power Resource Holdings Inc., MSpectrum Inc., Maharlika Consortium, Powersource OEG Services Inc., One Renewable Energy Enterprise Inc., FP Island Energy Corp. and Vivant Energy Corp.
These companies are scheduled to participate in a pre-bid conference before the actual CSP.
The private sector will service 98 declared unserved and underserved areas of the country clustered into 49 lots. The initial auction is expected to benefit 15,645 households.
Under the Microgrid Systems Act of 2022, the conduct of a CSP is mandated before a microgrid system provider can serve off-grid areas. The law also requires distribution utilities to submit their local total electrification roadmaps and list of underserved areas.
Unserved area refers to an area with no electricity access, distribution system lines, individual home system or no connection to any microgrid system while underserved areas are those where electricity services are less than 24 hours a day served by individual home system, microgrid system or distribution utilities.
A microgrid is the term used for a limited network of electricity users with a local source of supply that can function even if it is not connected to the national grid.
DOE said for the initial auction, the microgrid service provider CSP will be scheduled within the remaining months of the year while the awarding is targeted by the first quarter of 2024.
The winning bidders for the microgrid CSP should be able to provide 24/7 electrification, incorporate at least 35 percent renewable energy and offer the least cost solutions. -Jed Macapagal
