THE Department of Energy (DOE) has added a new measure to support higher renewable energy generation.
Department Circular (DC) 2026-02-0008 calls for the integration of energy storage systems (ESS) for large variable renewable energy (VRE) projects.
ESS are technologies that store electricity for use at a later time. Aside from providing backup power, they enable renewable energy integration and enhance grid stability.
VRE projects are power generation facilities — primarily wind and solar — that produce energy intermittently rather than on demand. Unlike conventional plants, their output cannot be turned on or off to match immediate power demand.
The new circular supplements and amends DC 2023-04-0008, or the Energy Storage Systems Policy, by updating the framework covering grid-connected and off-grid areas to ensure the systematic deployment of ESS.
All prospective VRE power plants with an installed capacity of 10 megawatts and above are required to integrate ESS equivalent to at least 20 percent of capacity, subject to system studies and technical requirements.
ESS installations are encouraged to include grid-support capabilities such as grid-forming inverters, which help stabilize voltage and frequency, mitigate renewable output variability, enable optimized dispatch, reduce generation losses and enhance overall system stability, the DOE said.
The updated framework also recognizes that ESS with virtual inertia or fast-acting system response may be deployed to improve frequency stability and power quality and may serve as alternatives during islanding or temporary separation from the main grid.
The circular further instructs the transmission network provider to incorporate ESS considerations in the Transmission Development Plan and recommend guidelines for grid-support capabilities, while periodic studies and simulations will be conducted to establish uniform technical requirements consistent with international standards and the Philippine Grid Code.
The ESS will also be reflected in the next update of the Philippine Energy Plan and considered in the review of the Transmission Development Plan, Distribution Development Plan and Microgrid Energy Development Plan to ensure storage is treated as a system resource.
