Philippines Mandates Energy Storage for New Large-Scale Renewable Plants
MANILA — The Philippines Department of Energy (DOE) has issued a new directive making energy storage mandatory for all large-scale renewable energy projects, a move aimed at stabilizing the national grid as the country ramps up its clean energy capacity.
Under Department Circular No. DC2026-02-0008, all prospective variable renewable energy (VRE) plants—primarily solar and wind—with a capacity of 10 megawatts (MW) or higher must now integrate an Energy Storage System (ESS). The circular mandates that the storage component represent at least 20% of the plant’s total installed capacity.
The policy shift is designed to manage the inherent intermittency of solar and wind power, which can cause sudden fluctuations in voltage and frequency. By requiring localized storage, the DOE aims to reduce generation losses and ensure a more reliable flow of electricity to consumers.
“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 S. Garin said in a statement. She noted that the policy ensures storage becomes a foundational part of project development rather than an optional add-on.
The updated framework also encourages developers to adopt advanced "grid-forming" inverters. These technologies provide "virtual inertia," allowing renewable plants to mimic the stabilizing behavior of traditional coal or gas-fired power plants.
In addition to private developers, the DOE has instructed the country's transmission network provider and distribution utilities to incorporate energy storage into their long-term infrastructure and development plans.
The mandate comes as the Philippines pursues an aggressive target to increase the share of renewable energy in its power mix to 35% by 2030 and 50% by 2040. Industry analysts suggest the move will create a significant surge in demand for battery energy storage systems (BESS) across the archipelago.
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