Demand-based power resource categories set

TechnologyBusiness & Finance
24 Feb 2026 • 12:15 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

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THE Department of Energy (DOE) on Monday said it has established a framework for strengthening grid reliability by classifying power resources into baseload, mid-merit, and peaking categories based on demand.

This policy, under Department Circular 2026-02-0005, orders power generation companies and distribution utilities to align their investments with specific, technology-driven grid needs to ensure a balanced energy mix — prioritizing nuclear, emerging technologies, and coal for consistent, long-term supply.

“Reliability is non-negotiable, even as we accelerate the energy transition. This policy will provide a systematic approach for matching the right technologies to the right system needs ... so that electricity remains secure and affordable while we increase renewable energy integration and reduce dependence on imported fuels,” Energy Secretary Sharon Garin said in a statement.

The policy promotes project planning discipline, flexibility, fast response and ancillary services in the energy sector to maintain stability and avoid overloading or lack of supply in certain areas, the DOE said.

The three power resource categories with their respective technology groupings are:

Baseload — dubbed “marathon runners,“ which operate 24/7 at a constant speed to provide the minimum amount of power a grid always needs. These are usually cheap to run but hard to turn off quickly. Examples are coal, geothermal and nuclear power.

Mid-Merit — or “flexible supporters“ that fill the gap between constant baseload and highest daily demands. These can ramp their power up or down relatively easily, as people wake up or go to work. Examples are hybrid renewable energy systems; gas-fired plants using indigenous, non-indigenous, or blended natural gas; hydro and other flexible plants capable of rapidly adjusting their output; and medium-to-long duration energy storage technologies.

Peaking — the “sprinters“ which operate for short bursts during the busiest times of day, like a hot afternoon when everyone turns on the air conditioner. These are expensive to run but can start up almost instantly, such as diesel, some hydro, and battery storage plants.