The Department of Energy (DOE) is actively encouraging investment in microgrid solutions to electrify over 200 underserved and unserved areas in the Philippines.
In her keynote address during the Microgrid Systems Provider (MGSP) Investment Forum held on 28 January 2025 at the Sheraton Manila Bay, DOE Undersecretary Rowena Christina Guevara emphasized the significant advantages of microgrid solutions, including reliable and resilient energy supply, economic development, job creation, environmental sustainability, and improved access to education and healthcare in underserved communities. She also stressed the vast economic potential of these communities.
“The are are over 200 areas that need microgrid system developers. These underserved and unserved households represent communities that have long been left behind in our nation’s energy development journey, yet hold so much potential for economic growth if given access to electricity,” said Undersecretary Guevara.
A 2010-2018 study, utilizing data from the Philippine Statistical Authority, Department of Health, and the DOE, revealed a strong correlation between household electrification and economic growth. The study showed that increasing household electricity access from 0 to 8 hours could boost income and expenditure by 17%; from 8 to 16 hours, by 33%; and from 16 to 24 hours, by 50%. The study estimated the total annual economic contribution of increased electrification at Php314 billion, or 1.8% of the country’s gross domestic product—more than sufficient to offset the estimated Php100 billion cost of complete national electrification.
To incentivize 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 MGSP Investment Forum was attended by Undersecretary Sharon Garin who sat as one of the panelists and Undersecretary Giovanni Carlo Bacordo who delivered his welcome remarks. The forum also brought together key stakeholders, including representatives from banking and financial institutions, government agencies, and microgrid development partners.