Question & AnswerQ&A (Republic Act No. 11357)
Republic Act No. 11357 grants Solar Para sa Bayan Corporation a nonexclusive franchise to construct, install, operate, and maintain distributed energy resources and microgrids in remote, unviable, unserved, or underserved areas in selected provinces of the Philippines to improve access to sustainable energy.
DERs are smaller power sources that can be aggregated to meet demand. They include renewable energy facilities, managed loads, energy storage, and other necessary measures to incorporate renewable generation resources and ancillary services, such as reserves and voltage control.
A microgrid is a group of interconnected loads and distributed energy resources within electrical boundaries that acts as a single controllable entity. It can operate in grid-connected or island mode.
The Department of Energy (DOE) determines these areas as defined under Sections 1 and 2 of the Act.
The grantee must provide reliable and efficient electrification to all or a substantial portion of the connected end users in remote, unviable, unserved, or underserved areas, subject to necessary interruptions for system repairs or construction.
The grantee is subject to rules and regulations promulgated under Republic Act No. 9136 (Electric Power Industry Reform Act) and Republic Act No. 9513 (Renewable Energy Act), including securing necessary certificates and licenses from the ERC, DOE, or other government agencies.
Yes, the grantee is authorized to exercise the right of eminent domain as necessary for construction, installation, and operation of DERs or microgrids, subject to the proper condemnation proceedings and provided it results in greater public benefit.
The franchise is granted for a term of twenty-five (25) years from the date of effectivity, unless sooner cancelled or revoked.
No, the retail rates charged to end users shall reflect the true cost and shall not be entitled to any government subsidy. The rates are subject to ERC approval and must be transparent and publicly disclosed.
A fine of Five thousand pesos (P5,000.00) per working day of noncompliance will be imposed, collectible by the DOE separately from other penalties.
No, the franchise explicitly states it is nonexclusive, and other qualified third parties may participate in competitive selection to operate in remote, unviable, unserved, and underserved areas.
The President of the Philippines has the special right to temporarily take over and operate the grantee's facilities or authorize their temporary use by government agencies, with due compensation to the grantee.
The grantee must establish a consumer desk to handle complaints promptly and ensure adequate protection of consumer interests.
The grantee must submit an annual report to the ERC, DOE, and Congress covering compliance with franchise terms, operations, audited financial statements, updated general information, certification from DOE, and other relevant information before April 30 each year.
No, the sale, lease, transfer, grant of usufruct, or assignment of the franchise or controlling interest requires prior approval from Congress; failure to report such changes results in automatic revocation of the franchise.