The Department of Energy has mandated that all variable renewable energy power plants with an installed capacity of 10 megawatts or more must integrate energy storage systems.
Under the updated framework established through Department Circular No. DC2026-02-0008, the storage capacity must be at least 20 percent of the plant’s installed capacity. This requirement is part of project development and grid integration, consistent with system studies and technical requirements.
To maximize operational value, the DOE encourages installations to include grid-support capabilities, such as grid-forming inverters that help stabilize voltage and frequency. These features are intended to mitigate the variability of renewable output, optimize dispatch, minimize generation losses and strengthen the grid’s power quality and reliability.
“Energy storage is not only about storing surplus energy; it is about strengthening the grid’s capability to absorb more renewables while maintaining reliability,” Energy Secretary Sharon Garin said. “This policy ensures that ESS integration becomes part of system planning and project development, supporting better outcomes for consumers.”
The new circular supplements and amends the framework of DC No. DC2023-04-0008, known as the ESS policy.
The updated framework also recognizes that storage systems with virtual inertia or fast-acting responses may be deployed to improve the power quality of transmission and distribution networks. The DOE noted that these facilities should be considered in grid reinforcements for voltage stability, frequency control and ancillary services.
The transmission network provider and distribution utilities are directed to ensure storage facilities are considered in grid reinforcement strategies. Furthermore, the circular directs the transmission provider to include storage considerations in the Transmission Development Plan and recommend guidelines for grid-support capabilities.
The DOE will reflect these requirements in the next update of the Philippine Energy Plan. Storage will be treated as a system resource across planning horizons, supporting both large-scale grid applications and localized solutions for off-grid and missionary areas.
