Lawmaker calls on investors to bankroll Philippine microgrids
A SENATOR on Monday urged local investors to bankroll the construction and development of microgrids in the Philippines to energize remote areas including those in Mindanao, and boost the country’s generation capacity.
“Electrification is usually followed by economic development, and the government in partnership with the private sector should aim to provide power to unserved and underserved areas in Mindanao,” Senator Sherwin T. Gatchalian said in statement.
He added that deals to set up microgrid service providers do not need a congressional franchise to operate.
The lawmaker said Mindanao has the lowest electrification rate among the major grids at 80.25% as of last year. Electric cooperatives in Mindanao, which cover 84% of total households in the region, only have an electrification rate of 78.98%.
In contrast, the electrification rate in Luzon as was 97.54%, while the Visayas was at 92.36%. Overall, the Philippines had an electrification rate of 92.75%.
Mr. Gatchalian noted that the state-run National Power Corp. and Maharlika Consortium recently partnered to provide microgrids in Cebu, Quezon and Palawan provinces.
The contract signed with the Maharlika Consortium covers eight unserved areas in these three provinces, he added.
Senate President Francis “Chiz” G. Escudero last month said the Department of Energy and Energy Regulatory Commission (ERC) should fast-track building new power plants to address power failures nationwide.
Energy Undersecretary Rowena Cristina L. Guevarra told a Senate hearing on May 14 that more than 4,000 megawatts of power are likely to be added to the country’s energy generation capacity by yearend.
She said new power plant operators are ready to come to the country and set up shop this year, but are just falling behind in application requirements.
The Philippines has faced yellow and red alerts since April because of the thinning supply from power grids.
“We are encouraged to see investors taking an interest in the development of microgrids in Luzon and the Visayas,” Mr. Gatchalian said. “We hope to see the same level of interest for the establishment of microgrids in Mindanao.” — John Victor D. Ordoñez
