New bid round to power 167 unserved zones

The Department of Energy (DOE) is mapping out the schedule for the third round of the Competitive Selection Process (CSP) for Microgrid System Providers (MGSPs), covering 71 lots across 167 unserved and underserved areas, with a release targeted by end-June.

The agency said on Tuesday that the upcoming round will be the first to follow the newly issued rules under Department Circular No. DC2025-04-0007, or the revised Implementing Rules and Regulations of the Microgrid Systems Act, which took effect on 13 May.

Projects awarded under the new rules will automatically qualify as Energy Projects of National Significance, allowing agencies to fast-track permits and licenses.

The Notice of Award will also carry a Renewable Energy Service Contract, subject to proof of possessory rights over the service area.

Undersecretary Rowena Cristina L. Guevara said the revised IRR, which simplifies CSP procedures, clarifies microgrid contract terms, and enhances investor incentives, sends a clear signal to investors that the country is “ready and open for sustainable microgrid investments.”

“This 3rd Round of MGSP-CSP marks a pivotal step in our push for total electrification… Through these efforts, we aim to empower our most remote communities with clean, reliable, and affordable energy, because energy access is not just a policy objective — it is a fundamental right,” Guevara said.

The DOE has also introduced more flexible contract terms, including exemptions from certain obligations under Energy Regulations No. 1-94 and selected RESC provisions. These will be detailed in the Notice of Award and formalized in the Microgrid System Provider Service Contract with the National Power Corp.

The DOE is working with distribution utilities, government agencies, and local governments units to finalize data on energy demand and service potential in areas targeted for the CSP.