The Department of Energy (DOE) has started preparations for the conduct of the 3rd Round of the competitive selection process (CSP) for the selection of microgrid system providers (MGSPs) for the initially identified 71 lots covering 167 unserved and underserved areas.
The DOE said in a statement Tuesday it planned to announced the schedule of the 3rd MGSP CSP by the end of the month.
“This 3rd Round of MGSP-CSP marks a pivotal step in our push for total electrification,” said Undersecretary Rowena Cristina Guevara.
“By streamlining regulatory procedures, introducing policy innovations, and strengthening coordination across government and the private sector, we are sending a clear signal: the Philippines is ready and open for sustainable microgrid investments. Through these efforts, we aim to empower our most remote communities with clean, reliable, and affordable energy, because energy access is not just a policy objective—it is a fundamental right,” she said.
It said that building on the lessons from the two previous MGSP-CSP, policy and regulatory aspects governing microgrid service operations were enhanced to create a more transparent, efficient, and investor-friendly environment for interested private investors.
In particular, the DOE has promulgated Department Circular No. DC2025-04-0007or the Revised Implementing Rules and Regulations (IRR) of Republic Act No. 11646 or the Microgrid Systems Act.
This revised IRR, which took effect on May 13, 2025, streamlined the CSP procedures, clarified the provisions of the microgrid service contract and the corresponding responsibilities of stakeholders and enhanced incentives for the provision of microgrid service.
Under the revised IRR, the award of a microgrid service area to a provider will automatically qualify the project as an Energy Project of National Significance (EPNS), enabling concerned entities to fast-track the issuance of necessary permits and licenses.
The notice of award will also include a renewable energy service contract (RESC) for the renewable energy components of the microgrid system, subject to the completion of remaining requirements, particularly the submission of proof of possessory rights over the service area.
The DOE is also closely coordinating with distribution utilities (DUs) and relevant government agencies, such as the Department of Environment and Natural Resources (DENR), Department of Transportation (DOTr), Department of Tourism (DOT), and local government units (LGUs), to gather data on the areas to be offered under this CSP, particularly in terms of energy demand and potential.
The DOE also introduced more flexible contractual terms and exemptions from certain financial obligations under Energy Regulations No. 1-94, which pertain to benefits to host communities, as well as selected obligations under the RESC.
DOE said these provisions will clearly be articulated in the notice of award and formalized in the MGSP service contract with the National Power Corporation, offering proponents greater security and reduced financial risk.
The DOE said through these initiatives, it is determined to create a more enabling environment for microgrid investments, thereby accelerating energy access in the country’s unserved and underserved areas.
