By Butch Fernandez - May 7, 2019
Congress, set to resume regular
sessions in two weeks, was asked to front-load the passage of remedial
legislation that will pave the way for “total electrification” of the
Philippines using the microgrid systems.
Sen. Sherwin T. Gatchalian, chairman
of the Senate Committee on Energy, earlier filed Senate Bill 2218 to be known
as the Microgrid Systems Act once enacted into law.
Gatchalian said the bill was crafted
to “spur microgrid development in unserved and underserved areas nationwide as
the government targets 100-percent household electrification level by 2022.”
Once enacted into law, the senator
added, the Microgrid System will “provide reliable electric services to every
household in the country and accelerate total electrification in areas with no
electricity access, no distribution system lines, no home power systems or no
connection to any microgrid.”
In a news statement, Gatchalian
cited government authorities’ earlier admission that total electrification
in unserved areas cannot be done by traditional grid extension alone and that
nontraditional means—such as microgrid systems—are needed.
Gatchalian pointed out the problem
of energy access is also a concern even in “electrified” areas with limited
electricity service also referred to as “underserved areas.”
The lawmaker added: “What we
will do is to allow proponents to put up microgrids. These microgrids will be
self-sustaining, meaning they will be producing, as well as distributing
power.” In filing SB 2218, Gatchalian said the remedial legislation was
crafted to address the acceleration of total electrification and the
provision of reliable electricity service in unserved and underserved areas, as
it paves the way for the installation of microgrid systems by accredited
microgrid service providers (MSP).
He added that the proposed Microgrid
Systems Act, once enacted, will mandate the Department of Energy (DOE) to
annually release and update the list of unserved and underserved areas for
prospective MSPs.
Moreover, the Gatchalian bill aims
to install “a streamlined process for MSPs with clear timelines and stiff
sanctions for bureaucratic red tape and delay,” and, at the same time, removes
the requirement of obtaining waivers from incumbent franchised utilities for
MSPs to provide electricity in unserved and underserved areas.
In addition, the proposed law will
mandate the Energy Regulatory Commission (ERC) to determine benchmark prices in
lieu of its traditional review of contracts which, he noted, has led to delay
in the electrification efforts in these areas.
Gatchalian’s bill further provides
that said generation companies, distribution utilities, retail electricity
suppliers, or their respective subsidiaries or affiliates may engage in the
business of MSP in unserved and underserved areas, provided that a separate
account is maintained for such business undertaking.
Expecting Palace swift approval of
the bill once it is passed by both chambers of Congress, Gatchalian pointed out
that the remedial legislation “will help the Duterte administration’s goal of
achieving 100-percent household electrification level by 2022.” He cited data
from the DOE that as of 2018, an alarming number of 2,779,530 households, or
11.7 percent of the total number of households nationwide, still have no access
to electricity.
At the same time, Gatchalian cited
reports that at least 83—or 48.5 percent—of the 171 areas serviced by the
National Power Corp.—Small Power Utilities Group received only four to eight
hours of electricity service in 2018, while 34 or 19.9 percent of areas received
only nine to 16 hour of electricity service. “If we want to achieve
100-percent household electrification by 2022, we need to look for other
technologies. Let’s improve the process of electrification,” the senator
suggested.
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