The Department of Energy (DOE) is strongly encouraging private investment in the electrification of over 200 underserved and unserved communities in the Philippines. Energy Undersecretary Rowena Christina Guevara highlighted the economic, social, and environmental benefits of microgrid solutions during the MGSP Investment Forum.
The Department of Energy (DOE) is strongly encouraging investors to participate in the electrification of over 200 underserved and unserved communities. During her keynote address at the Microgrid Systems Provider (MGSP) Investment Forum on Tuesday, Energy Undersecretary Rowena Christina Guevara highlighted the numerous advantages of microgrid solutions.
These include providing a reliable and resilient energy supply, driving economic development, creating new jobs, promoting environmental sustainability, and improving access to education and healthcare in these often overlooked communities. Guevara emphasized the vast economic potential within these communities, stating that there are more than 200 areas in dire need of microgrid system developers. She pointed out that these underserved and unserved households have been left behind in the nation's energy development journey but hold immense potential for economic growth if granted access to electricity. During the first round of the MGSP Competitive Selection Process, the DOE awarded eight lots covering areas in Cebu, Quezon, and Palawan to the Maharika Consortium as the winning MGSP. This consortium is expected to deliver 24-hour electricity service to a total of 3,106 households across the awarded areas. Guevara stressed that investing in microgrid solutions is not merely an investment in energy infrastructure but a broader investment in economic resilience, environmental sustainability, and social impact. As the MGSP expands, she said, it creates robust investment and opportunities aligned with future energy trends. The benefits of investing in microgrid solutions are profound. A study conducted between 2010 and 2018, using data from the Philippine Statistics Authority, Department of Health, and the DOE, revealed a strong correlation between household electrification and economic growth. The study demonstrated that increasing household electricity access from zero to eight hours a day could boost income and expenditure by 17 percent; from eight to 16 hours, by 33 percent; and from 16 to 24 hours, by 50 percent. The study estimated the total annual economic contribution of increased electrification at P314 billion, or 1.8 percent of the country's gross domestic product—more than enough to offset the estimated P100 billion cost of complete national electrification. To encourage investment, several enabling policies and laws have been implemented, including income tax holidays, duty-free importation of equipment and materials, renewable energy (RE) cash incentives for missionary electrification, special real property tax rates, and zero VAT rates. These incentives aim to make renewable energy investments more attractive, the DOE official said. Guevara emphasized that the agency is committed to collaborating with stakeholders across the energy sector, government agencies, private investors, technology providers, and local communities to create a favorable environment for microgrid investment
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