Energy Regulatory Commission Philippines (ERC) has adopted the Rules Governing Microgrid Systems under Resolution No. 11, Series of 2026, in a move aimed at accelerating nationwide electrification and enhancing consumer protection in unserved and underserved areas.
The new regulations operationalize the Microgrid Systems Act by establishing a comprehensive framework for the development, operation, and oversight of both isolated and grid-tied microgrid systems operating in island mode. The initiative is designed to encourage private sector participation while ensuring the delivery of reliable and sustainable electricity services to off-grid communities.
Under the rules, Microgrid System Providers (MGSPs) are required to provide 24/7 electricity service, achieve full household electrification within their designated areas, and comply with strict technical, operational, and performance standards to ensure efficiency, reliability, and safety.
The framework also introduces a transparent tariff mechanism based on the Full Cost Recovery Rate (FCRR), subject to ERC approval, allowing providers to recover investments while maintaining fair pricing for consumers. Additional measures include standardized Microgrid Service Contracts (MSCs), streamlined licensing through Authorities to Operate (ATOs), and strengthened compliance monitoring.
ERC Chairperson and CEO Francis Saturnino C. Juan stated that the rules are a critical step in ensuring inclusive electrification, enabling reliable and affordable electricity access for underserved communities while maintaining high standards of consumer protection.
The adoption of the rules is expected to improve electricity access and service reliability in remote areas, supporting economic development and improving quality of life. The framework also promotes the use of renewable and indigenous energy sources to stabilize costs and reduce dependence on conventional fuel-based generation.
To further ensure affordability, the regulations incorporate mechanisms such as Subsidized Approved Retail Rates (SARR) and access to the Universal Charge for Missionary Electrification (UC-ME), helping bridge the gap between actual service costs and consumer tariffs.
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