Maharlika Consortium awarded as microgrid service provider

April 4, 2024 | 12:00am

MANILA, Philippines — The Maharlika Consortium has bagged a contract to provide electricity services in eight unserved areas in Cebu, Quezon and Palawan, according to the Department of Energy.

Energy Secretary Raphael Lotilla led the awarding and turnover of the microgrid systems development in the three provinces on April 2 after the conclusion of the first round of competitive selection process (CSP) conducted by the DOE through its Microgrid Systems Service Provider – Special Bids and Awards Committee.

The consortium composed of Maharlika Clean Power Holdings Corp., Singapore-based companies CleanGrid Partners Pte Ltd. and WEnergy Global Pte Ltd. will provide 24/7 electricity services through a hybrid microgrid system composed of solar photovoltaic, energy storage system and diesel genset in the provinces.

The projects are expected to start operations “not later than 18 months” from the consortium’s execution of the microgrid systems service contract (MSC) with the National Power Corp. (Napocor).

The DOE said the rates to be imposed in Cebu, Quezon and Palawan are subject to the approval of the Energy Regulatory Commission (ERC) and will be provided with a subsidy under the Universal Charge for Missionary Electrification (UCME) for 20 years.

The Maharlika Consortium was the lone bidder during the MGSP CSP last December.

Aside from the Maharlika Consortium, The STAR earlier reported that eight other firms have previously pre-qualified to bid for the MGSP-CSP.

These are DMCI Power Corp., Smart Power Solutions Corp., Alternative Power Resource Holdings Inc., MSpectrum Inc., Powersource OEG Services Inc., One Renewable Energy Enterprise Inc., FP Island Energy Corp. and Vivant Energy Corp.

The MGSP-CSP is for the electrification of the DOE-declared 98 unserved and underserved areas in the country. These unserved and underserved areas were clustered into 49 lots.

The DOE is now eyeing for the next round of MGSP-CSP within the year for new areas, including areas mentioned in the first round that have yet received proposals.

The agency said collaborations with relevant distribution utilities and electric cooperative, the National Electrification Administration and Napocor would continue.

This will “validate the identified unserved and underserved areas,” noting that said areas may need further assessment for inclusion in the MGSP-CSP.

“Economic and logistical considerations are carefully evaluated to ensure the inclusion of appropriate areas in the CSP and should align with the overarching objective of delivering sustainable and reliable energy solutions to communities in need while optimizing resource allocation,” the DOE said.

Republic Act 11646 or the Microgrid Systems Act of 2022 governed the bidding process involving the implementation of a CSP before an MGSP is authorized to operate in off-grid areas.

The law provides a 90-day timeline from pre-qualification to contract submission to the ERC.