DOE Issues Circular to Fast-Track Priority Transmission Projects, Strengthen Grid Reliability

The Department of Energy (DOE) has issued a new policy circular aimed at accelerating the completion of critical transmission infrastructure to strengthen the reliability and affordability of electricity supply in the Philippines.

Under Department Circular No. DC2026-02-0007, the DOE designates the National Transmission Corporation (TransCo) as the primary authority responsible for planning, financing, and constructing transmission lines and facilities identified as Priority Projects.

The circular defines Priority Projects as those deemed essential to the Philippine Energy Plan and long-term energy security, necessary to support new generation, interconnection, and demand growth, or urgently required due to project delays despite prior interventions.

According to the DOE, delays in transmission development have hindered the alignment of generation expansion and grid modernization efforts, slowing the entry of new capacity and potentially weakening investor confidence. The department emphasized that expediting transmission infrastructure is critical to sustaining progress in renewable energy integration, energy efficiency programs, and the adoption of emerging technologies.

To ensure timely implementation, TransCo may engage government agencies, government-owned and -controlled corporations (GOCCs), financial institutions, or qualified private entities. Projects may be pursued through competitive bidding, unsolicited proposals subject to Swiss Challenge, or partnership arrangements. TransCo will oversee implementation and submit quarterly reports to the DOE to ensure transparency and accountability.

The circular also outlines specific obligations for the Transmission Network Provider (TNP), requiring full cooperation with the DOE and TransCo. The TNP must provide technical support and access to necessary data, assist in right-of-way acquisition, ensure the timely completion of its own projects, and facilitate testing, commissioning, and energization of Priority Projects. It is also mandated to avoid any action or inaction that could delay project execution.

To improve coordination and investor visibility, the DOE will publish and regularly update an annual list of Priority Projects, detailing their scope and implementation status. The department said this rolling update will help align transmission readiness with generation build-out and reduce uncertainty that can delay investment decisions.

The Energy Regulatory Commission (ERC) has been tasked with issuing the necessary regulatory framework to support the implementation of the policy.

Energy Secretary Sharon S. Garin said the initiative underscores the importance of transmission readiness in the country’s energy transition.

“Transmission readiness is a prerequisite for meaningful progress in the energy transition,” Garin said, adding that the framework is designed to ensure accountability, transparency, and stronger coordination in delivering grid facilities needed to integrate new capacity and reinforce system reliability.

The DOE reaffirmed that accelerating critical transmission infrastructure is essential to building a more resilient and modernized grid capable of absorbing cleaner energy sources while maintaining reliable and competitive electricity supply for Filipino consumers.