BAGUIO CITY—The Department of Energy is advancing policy initiatives geared toward strengthening energy adequacy and reliability as it remains focused on the long-term future of the industry.
“We are advancing policy initiatives such as the development of a capacity market and complementary mechanisms including the mid-merit auction. These are designed to provide clear investment signals, support timely capacity expansion and ensure sufficient and reliable resources are available,” DOE Undersecretary Rowena Cristina Guevara said in a speech during the Philippine Electric Power Industry Forum (PEPIF) 2026.
Guevara said another priority is expanding competitive markets, including the upcoming implementation of the Mindoro–Palawan Electricity Spot Market (MPESM). The MPESM will introduce transparent, market-based price signals in areas that have traditionally relied on regulated power supply arrangements.
“This initiative aims to enhance dispatch efficiency, promote operational discipline and cost transparency, and provide incentives for investments in efficient generation, renewable energy and hybrid solutions within island grids,” Guevara said.
She added that the MPESM is designed to reduce long-term dependence on subsidies while strengthening energy security.
The DOE has also issued policies to strengthen accountability and grid flexibility. These include a framework for categorizing energy resources, a policy on generator accountability to ensure facilities deliver electricity consistent with declared capacities, and a supplemental framework for energy storage systems.
These measures support the department’s energy transition goals of a 35 percent renewable energy share in the generation mix by 2030, 50 percent by 2040 and more than 50 percent by 2050.
“By the end of last year, RE already accounted for 25 percent of the generation mix, just 10 percent short of our 2030 target. This is significant progress after years of being at 22 percent,” Guevara said.
She noted that the continued implementation of the Renewable Portfolio Standards and the Green Energy Auction Program remain central to accelerating deployment.
“Additional auction rounds covering various RE technologies are forthcoming. On the demand side, programs such as the Green Energy Option Program and Net-Metering Program are empowering consumers to actively participate in the energy transition,” she said.
