The Department of Energy (DOE) has issued Department Circular No. DC2026-02-0008 requires all new variable renewable energy (VRE) projects with a capacity of 10 MW or more to integrate energy storage systems (ESS). The storage capacity must be equivalent to at least 20 per cent of the project’s installed capacity. The measure applies primarily to large-scale solar and wind projects and is intended to enhance grid stability as renewable penetration increases.
The DOE stated that the policy addresses operational challenges caused by the variability of solar and wind generation, which can result in rapid supply fluctuations. By mandating storage integration, the government aims to improve frequency control, voltage stability and overall grid reliability. The circular also promotes the adoption of grid-forming inverter technologies capable of providing virtual inertia, a function traditionally supplied by conventional thermal power plants.
In addition to project-level requirements, the DOE has directed the Transmission Network Provider and distribution utilities to incorporate energy storage into long-term planning for grid strengthening, frequency regulation and backup support during islanding scenarios. The new policy will be integrated into updates of the Philippine Energy Plan and the Transmission Development Plan to support clean energy expansion while maintaining system reliability.