The Energy Regulatory Commission (ERC) expects its new microgrid rules to speed up electrification in unserved and underserved areas, attract private investment, and tighten consumer protection.

Issued under Resolution No. 11, Series of 2026, the regulator said Thursday that the rules set a clear framework for developing and operating isolated and grid-tied microgrid systems in island mode, implementing the Microgrid Systems Act.

The ERC designed the policy to give investors clearer rules and returns through streamlined licensing, standardized contracts, and a cost recovery mechanism using the Full Cost Recovery Rate, subject to approval.

Likewise, it imposed stricter requirements on Microgrid System Providers, including 24/7 electricity service, full household electrification, and compliance with technical and service standards.

“These Rules Governing Microgrid Systems are a crucial step in ensuring that no Filipino community is left behind in our electrification efforts,” ERC Chairperson and CEO Atty. Francis Saurnino C. Juan said.

“By establishing a clear, transparent, and investor-friendly regulatory framework, we are enabling the delivery of reliable and affordable electricity to unserved and underserved areas while upholding the highest standards of consumer protection,” he added. 

To keep electricity affordable, the framework includes Subsidized Approved Retail Rates and access to the Universal Charge for Missionary Electrification, which help bridge the gap between actual costs and consumer rates.

According to ERC, the rules also open the door for distribution utilities to partner with microgrid providers or run microgrid operations themselves, which will help expand service coverage in off-grid areas.