The DOE offers several investment incentives, 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 value-added tax (VAT) rates.
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Significant financial investments further underscore the sector''s momentum. In June 2025, Scale Microgrids secured an impressive US$ 275 million in project financing from a
For example, the Brooklyn Microgrid project in New York City is a community-based microgrid that uses solar panels, battery storage, and backup generators to provide reliable and affordable electricity to residents [3].
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The Philippines Department of Energy (DOE) has awarded contracts for eight microgrids in unserved areas, including hybrid systems with solar and energy storage, as well as diesel gensets. Plans are now underway for a second competitive bidding round to develop microgrids in other areas without electricity access.
A consortium of three companies will build the hybrid microgrids in three off-grid areas of the country. A remote area in the Philippine province of Palawan. (Source: Sean Hsu / Shutterstock.com) Nearly 4 million Filipino households are either unserved or underserved by the nation’s power grid.
Plans are now underway for a second competitive bidding round to develop microgrids in other areas without electricity access. The DOE of the Philippines has awarded contracts to develop microgrid systems in eight unserved areas of the country through its Microgrid Systems Service Provider – Special Bids and Awards Committee (MGSP-SBAC).
The consortium will develop microgrids in eight unserved areas in the Cebu, Quezon and Palawan areas. The hybrid microgrid systems, which are expected to include solar, energy storage and diesel generators, must provide 24/7 electricity to the areas served.
The hybrid microgrid systems, which are expected to include solar, energy storage and diesel generators, must provide 24/7 electricity to the areas served. They also must be operational within 18 months of the contract signing with National Power Corporation, the government-owned grid operator in the Philippines.
The systems are expected to start operations no later than 18 months after the execution of microgrid system service contracts. Electricity rates will be subject to approval from the Energy Regulatory Commission (ERC), said the DOE.
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