DOE wraps up 1st MGSP selection, eyes next round

The Department of Energy (DOE), through its Microgrid Systems Service Provider - Special Bids and Awards Committee (MGSP - SBAC), concluded the 1st round of competitive selection process (CSP) for the MGSP with the award of microgrid systems development in eight (8) unserved areas in the Provinces of Cebu, Quezon, and Palawan to the Maharlika Consortium.


The Maharlika Consortium is composed of Maharlika Clean Power Holdings, Corp., Singapore-based CleanGrid Partners Pte Ltd., and Singapore-based renewable energy company WEnergy Global Pte Ltd.


The Consortium, as the winning MGSP, will provide 24/7 electricity services to said areas through a hybrid microgrid system composed of solar photovoltaic, energy storage system, and diesel genset to be built and operated not later than 18 months from the Consortium’s execution of the Microgrid Systems Service Contract (MSC) with the National Power Corporation (NPC).


The ceremonial signing and turn-over of the Notice of Award to the Maharlika Consortium was held on 02 April 2024, at the DOE Main Office in Bonifacio Global City, Taguig City.


The rates to be imposed in these areas will be subject to the approval of the Energy Regulatory Commission (ERC) and will be provided with a subsidy under the Universal Charge for Missionary Electrification (UCME) for a period of twenty (20) years.


Meanwhile, the DOE is set to hold the 2nd round of MGSP-CSP within the year for new areas, as well as those areas with no proposals received during the 1st round.


The bidding process is governed by Republic Act No. 11646, or the Microgrid Systems Act of 2022, which mandates the implementation of a CSP before an MGSP is authorized to operate in off-grid areas. The Act provides a 90-day timeline from pre-qualification to contract submission to the ERC.


The DOE continues to collaborate with relevant distribution utilities (DUs) and electric cooperatives (ECs), the National Electrification Administration (NEA), and NPC to comprehensively validate the identified unserved and underserved areas. This validation process is essential as these areas may either undergo further assessment for inclusion in the MGSP-CSP or necessitate identifying alternative solutions where microgrid systems may not be viable.


Economic and logistical considerations are carefully evaluated to ensure the inclusion of appropriate areas in the CSP and should align with the overarching objective of delivering sustainable and reliable energy solutions to communities in need while optimizing resource allocation. The DOE is committed to enhancing the Terms of Reference and streamlining processes to encourage wider participation from private sector entities. 


MGSP supports the achievement of 100 percent electrification targets by the end of the Administration of President Ferdinand Marcos Jr. ###