The Department of Energy (DOE) has issued Department Circular No. DC2026-02-0008, strengthening the implementation of the Energy Storage Systems (ESS) Policy to enhance renewable energy reliability and grid stability.
The amendatory circular supplements DC No. DC2023-04-0008 and introduces mandatory energy storage integration for prospective variable renewable energy (VRE) power plants with an installed capacity of 10 megawatts (MW) and above. Under the updated framework, such projects must integrate ESS equivalent to at least 20% of the plantโs installed capacity as part of project development and grid interconnection, subject to system studies and technical requirements.
The DOE said the policy aims to advance the countryโs just energy transition by enabling higher renewable energy penetration while maintaining power quality, reliability, and overall system stability across both grid-connected and off-grid areas.
To enhance operational value, the department is encouraging ESS installations to incorporate grid-support capabilities, including grid-forming (GFM) inverters capable of stabilizing voltage and frequency. These technologies are intended to address the variability of renewable generation, optimize dispatch, reduce curtailment, and strengthen the gridโs resilience under fluctuating conditions.
Energy Secretary Sharon S. Garin stated that energy storage plays a critical role beyond storing surplus electricity. She emphasized that integrating ESS into system planning ensures the grid can absorb more renewable energy without compromising reliability, ultimately benefiting consumers.
The updated framework also recognizes the role of ESS equipped with virtual inertia and fast-response capabilities in supporting frequency stability and improving transmission and distribution network performance. The DOE noted that storage systems should be considered in grid reinforcements to support voltage stability, frequency control, alternative supply during islanding events, and the provision of ancillary services.
The transmission network provider (TNP) and distribution utilities (DUs) have been directed to incorporate ESS facilities into grid reinforcement strategies where storage can deliver critical system services and improve overall reliability.
To institutionalize ESS deployment, the Circular mandates the inclusion of storage considerations in the Transmission Development Plan (TDP) and calls for the development of guidelines on grid-support capabilities. The DOE also requires periodic studies and simulations to establish uniform technical standards for ESS deployment, aligned with relevant international standards and the Philippine Grid Code.
Energy storage will also be reflected in the next update of the Philippine Energy Plan (PEP) and considered in the review of the TDP, Distribution Development Plan (DDP), and Microgrid Energy Development Plan (MEDP), ensuring that storage is treated as a core system resource across planning horizons.
The DOE reaffirmed that the revised ESS framework is intended to strengthen investment signals, enhance system performance, and accelerate the countryโs clean energy transition while maintaining secure and dependable electricity supply.
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