A BILL facilitating the establishment of microgrid systems in unserved and underserved areas was unanimously approved on third and final reading in the Senate Monday.
The legislation thus moves to bicameral conference committee level after the House-version of the bill was approved on third reading in January.
The proposed Microgrid Systems Act, or Senate Bill No. 1928 is expected to provide continuous power to remote communities. Unserved areas are those with no electricity access, while underserved areas are currently served by distribution utilities whose supply is less than 24 hours daily.
The measure was pitched as a rural development and poverty reduction initiative by allowing the private sector a clear path to entering markets that may fall within the service areas of power cooperatives.
If passed, the bill will authorize the Department of Energy (DoE) to streamline the process for the competitive selection of Microgrid Systems Providers (MGSPs).
As currently drafted microgrids will not be classified as public utilities, and will be open to any party that may wish to establish them, including private corporations, local government units, cooperatives, provided that these entities do not subsidize their MGSPs.
“This bill is meant to address the legal gaps as well as policy gaps in terms of the nationwide total electrification program of the government,” Senator Sherwin T. Gatchalian, primary author of the bill, said in a statement Monday.
The DoE’s target is to provide electricity access to all households by 2022. “This is a tall order considering that we are an archipelagic country, and that’s why the committee sees it fit to use new and innovative technologies such as the microgrid and the use of private capital to reach total electrification by 2022,” he added.
The bill bars territorial concession holders from refusing to allow the installation of microgrids or surrender customers to new entrants. It also regulates service contracts for microgrid customers.
Mr. Gatchalian, who also chairs the Senate Committee on Energy, is optimistic that the bill will be ratified before the end of the 18th Congress.
The schedule for the bicameral committee hearing has yet to be finalized. — Alyssa Nicole O. Tan