The Philippines Department of Energy says the Maharlika Consortium – representing three companies – will develop two microgrid hybrid solar and diesel generator power plants for “underserved” communities located on Panlaitan island and the island of Mindoro. Contact online >>
The Philippines Department of Energy says the Maharlika Consortium – representing three companies – will develop two microgrid hybrid solar and diesel generator power plants for “underserved” communities located on Panlaitan island and the island of Mindoro.
Palawan, the Philippines
Image: Wernerandreasli, Pixabay.
The Philippines Department of Energy announced the Maharlika Consortium – comprising Manila-based Maharlika Clean Power Holding Inc., Singapore-based joint venture firm CleanGrid Partners and Singapore-based renewable energy company WEnergy Global – will build a pair of hybrid microgrid projects.
Both projects will be hybrid solar and diesel generator power plants consisting of a "smart" transmission and distribution network, according to tender documents.
Both regions register "underserved" levels of energy, according to the tender documents. The projects are expected to produce a minimum share of 35% of renewable energy one year following operation commencement. This will increase to 50% by 2040 and be maintained thereafter.
The projects form part of the Philippine Energy Plan – a government policy aiming to electrify all the Southeast Asian country''s households by 2030. Traditional energy sources – coal, geothermal, hydropower and natural gas – are envisaged to make up the bulk of the archipelago''s baseload capacity (70%), with a sliver (20%) coming from natural gas and the remainder (10%) sourced from oil-based plants and variable renewable energy, such as PV and wind.
Legal reforms and a liberalized energy market is making the Philippines an attractive place to rollout PV projects, one analyst told pv magazine recently.
The country aims to install 15 GW of clean energy by 2030 with a possible focus on mini-grids and standalone clean power, according to a 2022 report by the International Renewable Energy Agency (IRENA).
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Unlike the national grid, a microgrid is a small, localized energy system that can operate autonomously or connect to a more extensive energy network. It combines renewable energy sources like solar panels, wind turbines, and hydroelectric power with energy storage systems like batteries. These technologies are managed through advanced control systems that ensure efficient energy use and distribution, especially in areas with limited access to the national grid.
Microgrids can provide power during emergencies, and their ability to operate in "island mode" makes them particularly valuable in disaster-prone regions like the Philippines. When the national grid is knocked out by a typhoon, earthquake or other natural disaster, a microgrid can continue supplying electricity to critical infrastructure, such as hospitals, schools, and government offices.
The Philippines experiences more than 20 typhoons each year, many devastating, causing widespread power outages and infrastructure damage. Following Typhoon Haiyan in 2013, which left millions without power and severely disrupted the local economy, it became clear that the existing energy infrastructure was ill-equipped to handle such frequent and intense storms.
Decentralizing power production and distribution through microgrids mitigates the impact of natural disasters on energy security. When connected to the larger grid, microgrids can provide a buffer by supplying energy to local areas during grid failures. Even when the national grid is offline, microgrids can operate independently, ensuring critical services like medical care and communications can continue. In remote island communities, where traditional infrastructure is often too expensive or impractical to build, microgrids are a viable alternative, providing energy without the need for extensive, centralized networks.
Microgrids are alternative solutions to more expensive submarine transmission lines, mainly serving small communities on smaller islands. Moreover, microgrids are less environmentally impactful and faster to deliver. This kind of localized resilience is precisely what the Philippines needs to ensure it can weather the increasing severity of natural disasters.
Beyond resilience, microgrids also offer a path toward a more sustainable and equitable energy system. The Philippines' central grid is mainly dependent on fossil fuels, especially coal, which contributes to the country's carbon emissions and exacerbates the effects of climate change. By integrating renewable energy sources into microgrids, the government can reduce its reliance on coal and other non-renewable energy sources, cutting emissions and moving closer to its goal of a low-carbon future.
Microgrids can be powered by solar, wind or even tidal energy, which are abundant in the Philippines' tropical climate and extensive coastlines. Solar power, in particular, has excellent potential, as the country enjoys abundant sunlight throughout the year. Microgrids can harness this renewable resource to power homes, businesses, and even entire villages. By generating energy locally, microgrids can reduce transmission losses, making the energy system more efficient and sustainable.
In my realization of our philanthropic projects at Solar Energy Foundation, a nonprofit providing solar power to off-grid communities, microgrids can be designed to cater to local needs. These decentralized systems can be customized to ensure that each community has access to affordable, clean and reliable power without the high costs of extending the national grid to remote areas.
Microgrids can also stimulate local economies. By creating new markets for renewable energy technologies, they open up opportunities for small-scale energy providers, technicians and entrepreneurs. As the Philippines continues to pursue its goal of becoming a leader in renewable energy, microgrids could become an essential part of the country's energy future, driving job creation and fostering innovation in the energy sector.
Despite their promise, microgrids face several challenges in the Philippines. The initial cost of setting up a microgrid, including the installation of renewable energy sources and energy storage, can be a barrier for many communities. Additionally, regulatory and policy hurdles must be overcome, as the energy sector in the Philippines remains heavily dominated by large utility companies.
With the enactment of Republic Act 11646 (the Microgrid Systems Act), public-private partnerships could also help fund microgrid projects in underserved areas. Advances in renewable energy technology u2014 such as cheaper batteries, more efficient solar panels, and smarter energy management systems u2014 will make microgrids more accessible and cost-effective today and in the near future. This will narrow the productivity gap between cities and rural communities, as the latter can host industries powered by microgrids.
Microgrids represent a transformative opportunity for the Philippines, enhancing resilience, promoting sustainability, and improving energy access. By decentralizing energy production and integrating renewable sources, microgrids can provide the country with a more reliable, affordable and environmentally friendly power system. In a nation that faces frequent natural disasters and struggles with energy inequality, microgrids offer a future-proof solution that could help the Philippines lead the way toward a more sustainable and resilient energy future. Now is the time for the government, businesses and local communities to invest in this innovative technology and unlock its full potential for a brighter, more sustainable Philippines.
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