Full RE and battery energy storage systems (BESS) are still generally expensive even for off-grid areas. While it would be ideal to fully displace diesel, currently in even the more advanced off-grid areas with high RE + BESS penetration rates, there are still DPPs on standby as backup or to help sm Contact online >>
Full RE and battery energy storage systems (BESS) are still generally expensive even for off-grid areas. While it would be ideal to fully displace diesel, currently in even the more advanced off-grid areas with high RE + BESS penetration rates, there are still DPPs on standby as backup or to help smoothen operations.
Another goal of the project is to enhance the innovation capabilities of EC personnel by providing access to extensive global technology and financing trends, which can fast-track EC energy transition ambitions and plans.
CSV''s project partners include the Center for Empowerment, Innovation, and Training on Renewable Energy (CentRE), the Institute for Climate and Sustainable Cities (ICSC), and Mott MacDonald, while the Tara Climate Foundation supports the project.
Since its launch in April 2023, the project has received positive engagement from the Philippine public sector. The National Electrification Administration (NEA) has been pivotal to the project by contributing its input, guidance, and support in facilitating communications with ECs. CSV has also directly interacted with and received positive feedback from the Department of Energy, the Energy Regulatory Commission, and key representatives from the House of Representatives.
CSV has received formal expressions of interest from select ECs with off-grid franchise areas to collaborate and participate in the program. Building on this momentum, CSV aims to deepen its efforts in engaging off-grid ECs by hosting regional workshops. These workshops will address technical aspects through an HRES Development Program and financial aspects through a Capital Planning and Fundraising Capability Program, facilitating ECs’ progress in hybridization and grid modernization.
Furthermore, CSV, in collaboration with Mott MacDonald as the engineering advisor, has initiated the project''s Technical Assistance Program (the “Pilot Program”). Through this program, CSV will work with two pilot ECs to design HRES solutions tailored to their current and future needs. The Pilot Program will also offer recommendations for potential modernization and upgrades to support the energy transition in the applicable off-grid franchise areas.
Alongside project partners CentRE and ICSC, CSV will continue to collaborate with its public sector partners while exploring more strategic partnerships with private power developers and financial institutions to accelerate initiatives in the off-grid energy transition.
1 Department of Energy, 39th Electric Power Industry Reform Act (EPIRA) Implementation Status Report (2021), https://doe.gov.ph/sites/default/files/pdf/electric_power/39th-EPIRA-Status_Report-2021.pdf
5 Asian Development Bank, Technical Assistance Consultant''s Report: Promoting Sustainable Energy for All in Asia and the Pacific – Renewable Energy Mini-grids and Distributed Power Generation (Subproject A) (2020), https://
This Report is focused on the transmission and distribution element of the energy transition and, in particular, on the changes needed to accelerate the transition by keeping in lockstep with the increase in both renewable energy generation and efficient use of electricity with special attention to direct participation by consumers.
(1) Building a modern grid for the Philippines requires a change in the legacy mindset and the acquisitionof new technologies. The former is an effort required of policy makers, regulators and utility operators while the latter is needed of utility operators and, not surprisingly, by consumers themselves. The change will be driven by external forces such as extreme weather events, violent conflicts and pandemics and by an internal one, that is, consumer demand for better service. The change will be enabled by improved ICT and well-designed and smoothly functioning markets.
(2) The Philippines has well-developed transmission and distribution plans and programs with significant parts dedicated to increasing resilience and cybersecurity. While these may not be explicitly based on the energy transition, many of their elements would be necessary for achieving it. Enhancing these plans and programs with a clear view to furthering the transition will be key to highlighting its benefits to the economy and the environment.
(3) The threats to and vulnerabilities of continuing to build the grid in a business-as-usual way can be identified and measured and the cost and benefits of doing so calculated. The Value of Lost Load (VOLL) is the key metric employed to gauge its impact on the economy.
(4) While much of what constitutes a modern grid is technology, its value for all but especially for electricity consumers is optimized with well-designed and well-functioning markets for power.
(5) Developing the modern grid in the Philippines requires the cooperative efforts of policymakers, regulators, utility operators, lenders, and investors, as well as consumers themselves working with a comprehensive framework for the energy transition.
Building and operating the grids in a business-as-usual manner is increasingly more costly with diminishing benefits. They will become even more costly as climate driven events occur more frequently and impact more severely and the burden of these costs will ultimately fall on consumers. The energy transition is an urgent need and its grid component likely requires more attention and resources than its counterparts. What will enable the Philippines to break out of business as usual and set it on the path of the transition and the modern grid is the moral imagination.
Considering that the power sector is made up of generation, transmission, distribution, consumption, and regulation, modernization of the grid requires buy-in from stakeholders to truly achieve the desired change. Grid modernization has only become an even more critical investment that can help the Philippines realize economic transformation that achieves climate and economic resilience. This chapter highlights recommendations to each of the stakeholder groups.
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