Section 2Sec./Art. 2

Definition of Terms -

(a) Distributed Energy Resources or DERs refer to smaller power sources that could be aggregated to provide power necessary to meet regular demand. These may also refer to demand-side and supply-side resources that can be deployed throughout the system of a network service provider to meet the energy and reliability needs of the customers served by the system including, renewable energy facilities, managed loads including electric vehicle charging, energy storage and other measures necessary to incorporate renewable generation resources, including load management and ancillary services, such as reserves, voltage control and reactive power, and black start capabilities.

(b) Microgrid refers to a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect from the grid to enable it to operate in both grid-connected or island mode.

(c) Remote and Unviable Area refers to a geographical area within the franchise area of a distribution utility where immediate extension of distribution lines is not economically feasible due to the distance away from the nearest facilities.

(d) Unserved Area refers to an area with no electricity access, no distribution system lines, no solar PV home systems, or no connection to any microgrid.

(e) Underserved Area refers to an area currently served by individual solar home systems, microgrids, or distribution utilities where electricity services are less than twenty-four (24) hours daily, or noncomplaint with any of the service parameters of the Philippine Distribution Code, or where electricity services have been interrupted at least twelve (12) times in the twelve (12) months preceding the date of the determination that such area is underserved, or any other reason resulting in any failing mark based on the latest annual evaluation of actual performance of distribution systems as compared to imposed targets of the Energy Regulatory Commission.