Wednesday, September 17, 2025

Changes eyed in terms  of micro grid bidding

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The Department of Energy (DOE) will consider changes in the terms of reference (TOR) for the conduct of its succeeding microgrid service provider-competitive selection process (MGSP-CSP).

DOE said the proponents mentioned that the TOR for the first MGSP-CSP failed to provide the private sector enough time, data and information to study for them to properly submit bids.

“We have to consider our experience during the conduct of first CSP of the micro-grid system to effect on the succeeding because we have to evaluate ourselves also,” DOE assistant secretary Mario Marasigan told reporters in a recent interview.

“We need to revisit practically the terms of reference because that is what the proponents follow in coming up with their proposals. If what is lacking is time, data and information then we have to address those,” Marasigan added.

Last month, the DOE completed the opening of bid proposals for the first MGSP-CSP.

Out of nine pre-qualified bidders, the DOE received six complete bid proposals, both financial and technical, from the Maharlika Consortium, covering eight lots that include unserved areas in the provinces of Cebu, Quezon and Palawan.

The Maharlika Consortium represents three companies — Clean Power Holdings Inc. together with Singapore-based firms CleanGrid Partners and WEnergy Global.

DOE said if Maharlika Consortium’s proposal is found to be in accordance with the TOR and the Microgrid Systems Act and its implementing rules and regulations, a post-qualification process will be conducted before issuing the notice of award that is targeted to be released by March 2024.

Another MGSP-CSP is being eyed this year as the DOE targets to conduct a bidding annually, Marasigan added.

The MGSP-CSP is aimed towards the electrification of 98 declared unserved and underserved areas of the country that were clustered into 49 lots.

The DOE said the MGSP-CSP forms part of efforts to achieve 100 percent household electrification by 2028, in collaboration with the private sector and all concerned national and local government units and institutions.

Under the Microgrid Systems Act of 2022, the conduct of a CSP is mandated before a micro-grid 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.

Unserved areas are those with no electricity access, distribution system lines, individual home system or no connection to any microgrid system, while underserved areas get electricity services for less than 24 hours a day served by individual home systems, microgrid system or distribution utilities.

A microgrid refers to 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.

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