THE Senate committee on energy is reviewing a policy that will allow a “decentralized” system of rural electrification by introducing microgrids to so-called missionary areas.
“What we will do is to allow proponents to put up microgrids, and these microgrids will be self-sustaining, meaning they will be producing as well as distributing power,” said Senator Sherwin T. Gatchalian, the committee chairman, in a recent interview.
He said the National Electrification Administration (NEA) had submitted a study that will allow the entry of private sector proponents of microgrids in response to a policy requested by the Senate in a recent legislative hearing.
“We’re currently reviewing that and that will pave the way for NEA to have, instead of the traditional rural electrification that is all wired, a decentralized microgrid system,” he said.
Mr. Gatchalian said microgrids would be a practical approach to energizing rural areas since NEA has budgetary constraints. He said the agency is requiring P25 billion for rural electrification, but only about P2 billion is allocated to it in the national budget, slowing down its target by more than 10 years.
He said he would propose a bill that will promote microgrids and give areas not being served by a distribution utility but under its franchise the right to put up a microgrid system solely for electrification and not as a business operation.
NEA has said it is drafting a policy to fast-track rural electrification by allowing private sector participation in electricity distribution, especially in remote areas of the Philippines.
“Electric cooperatives should fast-track electrification and should open up through installation of microgrids, allowing private distribution utilities should they be interested to energize an area, as well as maximizing solar home system and access to sustainable energy program,” NEA Administrator Edgardo R. Masongsong had said.
He said NEA is preparing a policy that would hasten rural electrification to maximize, among others, microgrid and solar home systems, as well as access to sustainable energy program.
He said the policy would be presented to the country’s 121 electric cooperatives. – Victor V. Saulon
