As the country moves away from reliance on fossil fuels, the Department of Energy (DOE) has issued a new framework that officially prioritizes nuclear power and emerging technologies over conventional coal for the country’s 24/7 electricity requirements.

In a circular released Feb. 23, the DOE established a policy framework intended to bolster power generation sufficiency and ensure grid reliability by standardizing the classification of energy resources.

The order mandates that distribution utilities align their electricity procurement with a new load hierarchy, a move designed to maintain grid stability as more intermittent renewable energy sources are integrated into the national system.

Under the new guidelines, generation companies are encouraged to develop projects based on the government’s preferred energy mix, which emphasizes specific technology choices and development timelines. As the administration pushes for an open-grid transition toward renewables, the policy classifies power technologies into three distinct categories: baseload, mid-merit, and peaking.

The most significant shift appears in the baseload category, which provides the steady, 24-hour supply required by the economy. The DOE now prioritizes nuclear energy and emerging steady-state technologies above all others. This is followed by coal co-firing—a process that mixes biomass or ammonia with coal—while conventional coal-fired plants have been relegated to the lowest priority in the baseload hierarchy.

For mid-merit power, which fluctuates to meet daily demand swings, the DOE identified hybrid renewable systems and flexible technologies such as gas-fired plants as primary sources. This category also encompasses hydropower and battery energy storage systems capable of rapid output adjustments. Peaking power, used during brief intervals of maximum demand, will rely on fast-start renewables and short-duration storage facilities.

Energy Secretary Sharon Garin said the policy was a vital step in reducing operational risks and improving long-term project planning.

She noted that grid reliability remains non-negotiable as the country accelerates its energy transition.

According to Garin, the systematic matching of technologies to specific system needs is intended to keep electricity secure and affordable for consumers while simultaneously reducing the nation's dependence on imported fuels.

The shift comes as the Philippines seeks to manage power costs that remain among the highest in Southeast Asia. By providing a clear roadmap for the private sector, the DOE aims to attract investment into cleaner alternatives without compromising the stability of a grid frequently tested by seasonal demand spikes.