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    Loren Sanapo

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    aE 2 5. pac ofthe Bip Congress ofthe Philippines Beco Basile ‘Blghteca Congeens {Gfjed Regular Session Bogn and ald in Mate Mani, on Monday the tony sth ‘ay of ay, tw tessa twenty-one. [RervauicAct No. 116461 AN ACT PROMOTING THE USE OF MICROGRID SYSTEMS "T0 ACCELERATE THE TOTAL ELECTRIFICATION OF LUNSERVED AND UNDIRRSERVED AREASNATIONWIDE ‘Beit enacted bythe Senate and House of Representative of he Philippines in Congress assemble: SECTION 1. Te. This Act shall be roferred to a8 the "Microgrid Systane Act. $30.2 Dactrtion of Py. Ie hey dele the policy of the State to: ime a (@) Pursue sustainable rural development and poverty ‘eduction tard nation buding tough energy ace fr () Avclerat oa elatrifstion and ensure the provi, of guy, rb od sry sey est eons alee in unsere and undemorved areas, (o Bromete pate ctor participation inthe cletSeation of toured and underterved (©) Ensure the adoption of « dynamic regulatory vine nt es ea not nt eee eo Soong or enjoving the benefite of technologies nad Innovations inthe cleric power induty Se 3, Sop ond Applicaton. = This Ae hal ray eroged systems In ‘SEC 4, Definition of Terms. ~ For purpose of this Act, ‘the following terms tall be defined eo cated below: that could be ageregated to provide elotis power ‘Secueey to most demand, including, but not hited Uo, ‘incwind turbines connected tos mirage, enor storage, fd solar photvalticrottop of en end-see (4) Dinsibsion sate sfors to the cyte of wis and sociated flies extending Between the delivery Ponts ox a the transmison, eubtransmioon aytam, or power generation faciity ommecten end the pat of conection to he prem ofthe cndaser, whichever applicable; (6) Disteibution utility (DU) rofera to any electric perative,pivat corporation, govrimentowned wily, oF ‘siting loc government unis which hae m franchise to ‘perata' dstsbuton system including toee whore franchise (DU operated microg eyetom refers to a microgrid system owned. and operated by a DU in a DU identihed ‘Snsorved area i ite lea total leteiation roadmap: (@ Blecric Cooperative EO) relers to « DU organized ‘pursuant to Preideatiel Davee No 263, t0 amended, of a8 ‘there provided in thia Act (@) Bader refer to any mataral or juridical person requiring the supply ad dlr of lcs rt ova tae? (Gri pofors to the high voltage backbone system of ‘ptorsnnected tanemistion ines, eubtation, end Talated oeted in each of Laz, Viena, a ‘pete aaeeeeres operating s 0 standalone yee in sopping and delivering Tene power to connected end ser 0 totted microgrd epstem refers a miroevid wvtam tin a lenge tye tian ce 1Du'and is operating ana siandloe eit in Spo Sh datverng cin! power t coaeced eabeore (x) Local total elactriSeation roadanap (TER) refers to ‘2 DUS coupechensveeratape lan with an annual workplan vet MOTOR tes prover serving contact OSC) xa to the contract besween the microg eyetom provider nd the Natonsl Power Corporation (NPC) whereby the Imicrogrid system provider performe the ‘icsionary ‘location function om bebalf of the NPC and provides Inegrated power generation and Gstrbution sevice in an Userved or udcraeved are, and to receiv subeidy whenever pple (@) Mice eytam provider (MGSP) refers to astral oe jurdeal person whoen business Includes the Installation, ‘pereton, and muitannnce of micogridspetete in neared tr underserved arose mtuonwide: (@ Nationa otal elctrotion roadmap (NTER) refers te « comprehensive national strategic plan including a work plan to scelerate total eeceiontin inthe country taking Tate account the various LTERe and the Disteibution ‘Develgpment Pia (DDPr) fetal be incorporated in the Philippine Emery Plas (9) NPC Gradstion Plan refers toa comprehonsive and aetalod strategy of the NPC to attract private beclor Dartcpacon in srets served by the NPC: (© Spuchoniod made refer othe operation of gi-ted com ame whan enero ayo BEC ae ‘he Gictrbuton eetom of't DU, and allows the etiod Imlrogeld eyetem fo aupply to or draw power fom the grid; (© Underserved ea rfers tan ares currently sored | | (0) Unserved are refers to an aes, upon the etetvity ‘of thin Ace with no lect aacess, bo distrution system Fines no home power syremn no connocion to any miceped synem, ore wach no datribution gd extension Ras been ‘eveoped or implemented by the D be, 5, Mirgrid Sytem in Unsrued and Underserved Area = MSDs may protideinerated power generation ae ‘bution serve in DU Mentifedunservd arvas folowing fhe procedure in Section 9 of thin Ac, and shall provide the rye in the Department of Energy (DOE) declared unserved ‘underserved asess after the conduct of a CSP ia Scoordanon with Sections 8 ly and 12 ofthis Act Provided, ‘hat ony iolted nicroqeid sates and rid-tied microgrid ‘pest Spring a eal slowed: Prete. further, That snserved and five ta appropriation for ‘Appropiations Act (GAA) at ‘Ae snl no be iced ia the at of DU Mentied anecrved ‘teen and DOE declared sinorved shd wndereerved area, SEC 6, Microgrid Sytem Providers. ~ The ownership snd operstion of « mictogrid system in unserved. and area thi Act sal nt be caldered pubic usigy operation For ths purpose, any MOSP shall Sat be requzed to eeu franchise fm Congrss, but “at ATO from the ERC prir t ite operation alll en cieesacea rea fpneration compenise and their subsidiaries, and DUs and ‘lor subediance who have demonstrated the capability and Willingness ta comply wit the rolovant technical, nancial tnd olher requirement, may be an MGSP: Prouided, Th {fee entsee shall not eubesion their romective MCSE and ‘hall ‘maintain a separate account for euch business “ndttaing pursnot to HRs appablevlee and guidlines ‘on busines separation tod unbundling, whenever appbecable SEC. 1, Waiver of Obligation to Provide Distribution Services and Connections and to Supply Becta. DOE ‘eclared unucrved or underoerved areae or DU identiied Cioecred areas which are awarded to MGSPs pursuant to ‘Slftone 6 and Of his Act shall be doomea waived by the DU inaar ae tigation to provide digsibtion serie and fenneciona to end-wers and supply electiaty to the aren “anal, abandon, or moi ‘SC. &. Competitive Slaton Prose for Electrification ‘ond Serioe of BOE Declared. Uncerucd and Undereroed ‘areas ty Meregral Stem Providers ~The DOB shall decane ‘iocrvel and underserved area or clectreaon end eviee iy MSPr purmunat to Section 12 of this Act. Tho DOE ‘Edad unstrved and undererved arene shall be subjected to (CSP. All CSPs shal (a) Priostize low-cot, indigenous cenvironment-trondly sources of energy: (6) Be stple, uniform, srnmlined, and traneparent: Provided, Tt th soir provdare lrom prealification of IMGSPe until the subsision tothe BRC of the awarded 7 otra salle no ooger tha ninety (0) calor days ser AIT the published reqsiremesta are completely submited ‘Prout, rier, Tat the CSP may be conducted using & fecare electron portal. A DUs MOSP may tender lower oar in every CSP it participates in within ie franchioe ares, unlees otherwise provided in Seton 17 of thi Act. within oven (D calendar {aye ffom the announcement of ie winning MGSP in the (GSP: Provided, "That rach tender shall bo enbmited tthe DOE or tm authorised entity, whichever ie eppleable, and the winning MGSP, ‘The award by the DOE or its authorized entity to the (MGS, the execution of de MSC, and the Hing of complet {pplication with the ERC bal comprise the provisional Mfbely atthe MGSP to start sollacton ef the rate opeibed {ir te averd, the MSC. and te applieton spon the start of the MGSPr operation’ Provided, That the ERC chall ‘Shedule and conduct a hearing thereon within thirty 0) ‘dae dpe from recnpt of the complate aplication, upon ublcton mod mois to al altel parts, Pode, ther ‘Phat the Baal decision shall be inne within oe hundred {Rirtiv (19) calendar daye from rect ef the compete ‘ppheaton, | | ‘ Provided, That the DU sball have tho right to tender a lower ‘bin pre ofr within even (1) calendar daye afer the DOE fr the NDC publashes all pic oles it has received on its ‘rebeite: Pride, farther, That im the event the DU tonders Snserved area though a DU operated meogrd ‘Schoen (8) month fom the nward bythe DOB or the NPC: ‘Proud nay, Tht if he DU dove ot tendor lower all {in price offer, the DOE or the NPC shall wward the MOSP ‘with the lowest alin prize ate eocrty te DU sent Xinerved area andthe NPC shall enter into az MSC wth Sack MGSP. Inthe event there er no frm from any MGSP for a portialar DU taeatiied-wnerreed area, the DU shall lect the sree through a DU operned mrogeid stem ‘vihincghtoce (18) onthe fom the lapse afte tir GO) ‘endar day period Sr MGSPs tender an allin prc ofr ‘Tas entire presodure shal: (@) Prioritize low-oost, indigenous, renewable, and ‘vironment endly sees of ener: (9) Be simple, wir, streamlined, and tangparent; and (© Be no longer th ninety (90) calndar days fom the blction by the DOE or the NPC ofthe tof DU ions ‘880110, Availmen ofthe UCMB. ~ Only MOSPe and ‘DU cperatad terogd mye tht pertain woserved areas tol undererved arcu aot connected tothe grid or within & Ranchos aren where the disuibuton sytem Snot connected ’ to the grid may be entitled to avail of the UCME, as Sstermineé by the ERC. The avallment of the UCNE shall fe retioalized by the DOF in cosaltation with the DUs king into consideration equity and continued eeonomic progestin these areas Sk. 11, Powers, Functions, and Responsibilities of the Energy Repuitory Commision. In addon tots factions Ander Republic Act No"'9136, the ERC shal: (a) Provide for simplified and strained permitting procem for NGSPe and DU operated microgid quem in ‘roordance with the time fume sported in Seton 19 of us ‘Rav and anus an ATO to an NP pursuant to such process ©) Develop, establish, and promulgate in conmltation with the DOM, the NPC; the National Blecteifeation [Administ QUA, and ober relevant gorerment agence find private stakeholders inthe slr power industy, the ‘Binimum technicel and service performance standards for ‘icmp epstame ithin oot hued went (20) calendar {Eye fom the ells of thin Act Provided, That thos ‘fdcuards shal be compliant with the PDC, Plippine Srell Se Ge Pipe Ge Co a ther tra le (6 Review and act on all MSCe entered into within the tine frame provided under Sections 8 9, aad 19 of his Act (@ Buen ta rato aking power through the erauation spd determination ofthe lowing. watin the aptsable tne finmen provided under Sections 68, and 19 ofthis Act. @ An MGSP or DU operated miroridestonte fll, anprved busy f applica, and retail ate iponed 00 oltunre of unstrved and undercrved areas Ap equitable recovery mochanicm,if applicable, for re just compeacation et the (Gi i the event of = astibution ged extomsion, upon the expiration ofthe MSC, and upon decion of the DU to [gun ce mloopid syst, review the application ofthe DU. efore the ERG tn comet the mictgrid atom to the Soca el pues ho oat ny ae Doe ne Pre Tat ny een a Rohan es al te spre ‘the ERC; ” (2 Monitor te compliance of all MGSPs with their ‘blgaions under ther seapectie ATO; and (Exercise original ad exclusive jursticton over all ‘ates avaving te exercie ofthe abovementoned powers, fesetion, and respnsinites, and overall case invlving Alsputes arcing fm this Ack except in competition cases inder Republic Act No. 10667, otherwise known as the "Phippine Competition Act SEC. 12. Powers, Functions, and Reaponsbilties ofthe Department of Energy. ~ in addin to it faetions andor ible At No, 7658, otherwico known as the “Department of Bnergy Act of 1992" as amended, the DOE aba (9) Prepare and publish annually on se website the INTER, pon soorlaton wth pub and petate Saker 0 Provide form simplified and sroumlined permiting proce for MSPs and DU persed jane within ‘He'lne fame oped in'Sacson 19°08 Oia Ac (@) Determine which DUs may duster for the quarry submissions of LTEie and DDPr te well as the quarters conduct of CS (@ Determine, in conaitation with DU, the te fame fer complance with ther rere LTERs ond DOPE wide, That all projects In cach aaa all ‘bo completed uot lator then oighteen (18) moathe fom ‘Soiinton te BOE or, inthe cate of DU seated Thecrved ent pie ofthe thy (GO}

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