DOE targets P27bn microgrid rollout
DOE expects its microgrid auction to attract up to P27 billion and electrify 101,500 households across 369 remote areas.
The Department of Energy (DOE) aims to roll out a microgrid program worth P27 billion that could electrify 101,500 households in 369 remote areas, according to AB Capital Securities. This would increase the country's current coverage of 11 operational microgrid systems serving 9,000 households by roughly 11 times. The expansion of coverage would be a significant step forward for remote and hard-to-reach communities that currently rely heavily on diesel for power generation.
While there may be potential for participation in the microgrid sector through solar-plus-storage development or microgrid operations, the fragmented sites and low household demand could make returns challenging without viable tariffs or subsidies. The auction terms, including the Energy Regulation Commission (ERC) tariff-setting and subsidy mechanisms, will be crucial in determining whether projects can generate adequate returns.
The success of the P27 billion target will be evident once actual awards and financial closings are completed, indicating whether the funding translates into bankable investments and meaningful private-sector participation. AB Capital Securities maintains its stance on the coverage and estimates, stating that they will not make any changes to their assessment until listed players secure material projects on commercially viable terms.
The information provided by AB Capital Securities is based on sources believed to be reliable but is not guaranteed and should not be considered all-inclusive or an offer to buy or sell securities.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
