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The Philippine energy sector remains plagued with issues of energy security, high electricity costs, and vulnerable grid infrastructure. This paper argues for the increased uptake of microgrids as a solution for these issues, using the Institutional Analysis and Development (IAD) Framework as a guide for microgrid policy. We begin this paper with an analysis of existing energy policies in the Philippines, highlighting a lacking integrated approach for energy security. The main discussion explores the IAD framework for microgrid development in the Philippines, identifying key barriers and dynamics among institutions and actors in the local energy sector. We then conclude with policy implications for adopting microgrids for the Philippine energy landscape.