The Department of Energy (DOE) has proposed a new policy enabling power generation companies to finance and construct transmission infrastructure to accelerate the completion of power projects and address ongoing grid bottlenecks. The move seeks to resolve delays in project dispatch caused by limited grid capacity and technical constraints within the national transmission network—issues that have particularly affected renewable energy developers.
Under the draft circular, generation companies would be permitted to develop and fund new or expanded transmission lines, substations, and related facilities—collectively termed associated transmission projects—beyond their existing point-to-point (P2P) connections. These assets would be implemented under agreements with the National Grid Corporation of the Philippines (NGCP), which would oversee project execution, cost recovery, and eventual turnover to the grid operator.
The DOE stated that the proposal aims to align grid expansion with generation growth, ensuring the timely integration of new capacities and improving system reliability and energy security. The draft policy, now open for public comment until October 15, 2025, is expected to help bridge transmission development delays and enhance investor confidence in the country’s power sector.
