CSP on investments in microgrids set before yearend

- Advertisement -

The Department of Energy (DOE) is set to conduct a competitive selection process (CSP) for private sector investments on microgrids before the end of the year to improve power services in off-grid areas of the country.

The agency said  the move coincides with the release of the 2023-2032 National Total Electrification Roadmap which identifies unserved and underserved areas in off-grid areas that will be prioritized for CSP.

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.

- Advertisement -

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 CSP for microgrid service provider  will be held within the remaining months of the year while the awarding is targeted by the first quarter of 2024.

The agency said this bidding will also cover 98 unserved areas and underserved areas clustered into 49 lots located in remote areas of the country, wherein a total of 15,645 households are expected to benefit from the initial auction.

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.

The agency said the parameters to be observed in choosing winning bidders for the microgrid CSP include the ability to provide 24/7 electrification, incorporating of at least 35 percent renewable energy and offers with the least cost solutions.

DOE said  based on the 2020 census of population and household projections, government electrification efforts will have to cater to 3.7 million households, of which 2.7 million are within the franchise areas of the electric cooperatives requiring different electrification strategies, rationalized government subsidy and innovative implementation schemes.

The DOE said at least 1.3 million of the 3.7 million households are located in areas that are not yet connected to the distribution and transmission systems which require alternative solutions such as microgrids.

 

Author

- Advertisement -

Share post: