Furthermore, recent events in the Philippines have shown that this centralized power system may no longer work. From the Panay blackout in January 2024, which affected millions of people for days, to the disastrous Typhoon Odette, which left island provinces like Bohol without power and water for months, we have witnessed the vulnerability and fragility of our power grid.
The main problem with the traditional model is that it depends on a single or a few sources of power and an extended, complex network of transmission and distribution lines prone to failures and losses. It also creates a monopoly or oligopoly in the sector, limiting consumers' choices and rights and allowing for rent-seeking and corruption.
With the reduced cost of renewable energy like solar, wind, and battery energy storage systems, the whole system may be turned upside down. Instead of drawing power from the grid, they can generate power to deliver to the grid. In this way, communities will not be dependent on the plans and programs of transmission companies like the National Grid Corporation of the Philippines (NGCP).
A microgrid is a small-scale power system that can operate independently or in coordination with the primary grid. It can serve a local community, village, campus, hospital, factory, or any other entity that needs reliable and affordable electricity. A microgrid can use various power sources, such as solar panels, wind turbines, or biogas plants, and can store excess energy in batteries or other devices. It can also manage the demand and supply of electricity within its network using smart meters and Artificial Intelligence (AI).
Microgrids can improve power supply resilience and security, especially during natural disasters or emergencies. They can reduce electricity bills and create income opportunities for consumers by allowing them to sell their surplus power to the grid or other consumers.
Microgrids are not new, but they have yet to be widely adopted, especially in the Philippines. Many barriers and challenges, such as regulatory hurdles, technical issues, financial constraints, and social acceptance, prevent the development and deployment of microgrids. However, many opportunities and solutions, such as policy reforms, innovation, partnerships, and education, can overcome these obstacles.
First, we must reform our policies and regulations to create a more enabling and supportive environment for microgrids. There is a need to reformulate our regulatory framework.
Second, we must innovate and adopt the best microgrid technologies and practices. We must learn from the experiences and lessons of other countries successfully implementing microgrids.
Third, we should educate and inform the public and policymakers about the benefits and potentials of microgrids.
It is time to change the century-old convention in electricity distribution and embrace the new microgrid paradigm. It is time to give power to the people.
This article was originally published on InsiderPH on April 7, 2024.
A power industry expert with over 40 years in experience as chief executive officer in firms ranging from banking, power, and advisory services.
