The Department of Energy aims to complete 200 power generation plants by 2028 as part of a strategic push to achieve energy security and attract sector investments, Energy Secretary Sharon Garin said.
The agency reported headway in 2025, adding 956 megawatts (MW) of new generation capacity and 160 MW of energy storage systems in Luzon and Visayas. The capacity additions include 12 renewable energy projects, an oil-based plant and a natural gas-fired facility.
Garin said the department is monitoring the 200 projects to ensure the majority are operational before the end of the current administration. The increased supply is expected to foster competition and lower long-term electricity costs for consumers.
“If you have more supply than demand, then the prices go lower,” Garin said.
“When you have more supply, they have to compete. So competition brings prices lower also,” she said.
The department’s Green Energy Auction Program has emerged as a major driver, securing 20 gigawatts this year.
Garin noted the country is also pioneering innovation as the first in the world to hold a public bidding for native hydrogen, with two contracts already awarded.
For 2026, the energy department plans to prioritize cleaner energy by scaling down coal and diesel usage, particularly in island provinces, while increasing the use of natural gas and indigenous sources.
Energy Regulatory Commission (ERC) chairperson Francis Saturnino Juan also said the agency achieved major milestones in 2025 by resolving long-pending rate cases and expanding consumer protections.
The ERC facilitated P21.28 billion in total refunds for consumers covering various over-recoveries and regulatory resets. The commission also simplified net-metering procedures, leading to a 188 percent surge in registrations and adding over 185,000 kilowatts to the grid.
To improve market transparency, the commission issued a resolution requiring generation companies and distribution utilities to offer at least 15 percent of their common shares to the public.
For 2026, the commission plans to enforce least-cost obligations and set prices for emerging technologies like offshore wind and liquefied natural gas.
Juan said the agency would also expand subsidies for lifeline consumers and senior citizens while streamlining investment approvals for power supply agreements.
The ERC oversees an industry valued at about P4.13 trillion, covering nationwide generation, transmission and distribution.
