To improve national grid stability, the Department of Energy (DOE) has issued a new directive requiring all large-scale renewable energy projects to integrate energy storage systems (ESS).
Under Department Circular No. DC2026-02-0008, issued Thursday, all prospective variable renewable energy (VRE) power plants with a capacity of 10 megawatts (MW) or higher must now include energy storage. The storage component must represent at least 20% of the plant’s total installed capacity.
The policy marks a significant shift in how the Philippines manages the inherent intermittency of solar and wind power. By mandating “batteries” or other storage technologies, the DOE aims to mitigate sudden generation losses and ensure a more dependable electricity supply.
“Energy storage is not only about storing surplus energy, it is about strengthening the grid’s capability to absorb more renewables while maintaining reliability,” said Energy Secretary Sharon S. Garin. “This policy ensures that ESS integration becomes part of system planning and project development, supporting better outcomes for consumers”.
The circular also encourages developers to use advanced technologies, such as grid-forming (GFM) inverters. These tools provide “virtual inertia,” helping to stabilize the grid’s voltage and frequency during fluctuations—functions traditionally provided by fossil fuel-based plants.
Beyond private power plants, the DOE has instructed the Transmission Network Provider (TNP) and distribution utilities to incorporate energy storage into their long-term infrastructure strategies. This includes treating storage as a critical resource for grid reinforcement, frequency control, and as an alternative supply for “islanding” scenarios where areas are temporarily cut off from the main grid.
The government plans to institutionalize these requirements by reflecting them in upcoming updates to the Philippine Energy Plan (PEP) and the Transmission Development Plan (TDP). According to the DOE, the updated framework is intended to create stronger signals for investors while accelerating the country’s clean energy targets. (JLN/PIA-NCR)
Source: Philippine Information Agency
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