Amid recent power fluctuations in Luzon and recurring yellow alerts in Visayas grid, energy regulators and private-sector players are pushing for faster deployment of flexible and dispatchable power capacity to strengthen grid reliability during the dry season.

During the Economic Journalists Association of the Philippines (EJAP) Energy Forum 2026 on Tuesday, May 26, Department of Energy (DOE) and Energy Regulatory Commission (ERC) officials as well as private-sector executives called for accelerated procurement of ancillary services, battery storage, and fast-ramping power capacity to address supply strains and rising electricity demand.

ERC Chairperson Francis Saturnino Juan said the country should adopt a more dynamic reserve framework aligned with weather conditions and demand fluctuations.

“If a heat advisory tells us the afternoon peak will be five percent higher than normal, we should have enough reserves to handle that,” he said in his speech.

Juan noted that faster procurement of ancillary services could help increase available reserve capacity and improve grid stability.

“We will accelerate any regulatory action needed in the procurement of ancillary services and fast-ramping capacity. The fact that all six manual load dropping events were not caused by generation deficiency—not by transmission failure, not by fuel shortage—tells us we did not have enough reserves on the right side of the dispatch curve,” he stressed.

The ERC chief said the initiative would open more opportunities for battery energy storage systems (BESS), aggregated demand response, and hybrid renewable energy (RE) facilities.

He added that battery storage development is becoming increasingly important as solar power installations continue to expand amid the ongoing energy crisis and heightened electricity demand during summer months.

Juan also said the ERC is studying a framework that would compensate commercial and industrial consumers for reducing electricity usage during critical hours through incentives and time-of-use tariffs.

In addition, the commission plans to revisit the secondary price cap in the electricity market.

“This is meant to be a circuit breaker, not a destination. We need to ask whether the cap is sending the investment signal we want, or whether it is muting the very signal that would attract the peaking capacity we lack,” Juan said.

Meanwhile, DOE Undersecretary Felix William Fuentebella echoed Energy Secretary Sharon Garin’s call for a whole-of-government approach to expanding domestic energy sources and reducing dependence on imports.

“Reducing import dependence requires a strategic pivot toward maximizing indigenous energy resources, particularly RE and other locally available options,” Fuentebella said.

“By doing so, the Philippines can limit exposure to global price volatility, safeguard supply stability, and retain greater economic value within the country,” he added.

The DOE currently has several rounds of green energy auctions (GEAs) scheduled this year to accelerate the development of RE projects.

The agency is also coordinating with Enrique K. Razon Jr.-led Prime Energy Resources Development B.V. on the development of Camago-3 and Malampaya East-1 wells to help extend the operational life of Malampaya gas field in Palawan province.

As Visayas grid enters its second week of nearly continuous yellow alerts this month, regulators also emphasized the need for stronger coordination with National Grid Corp. of the Philippines (NGCP) to improve transmission infrastructure and reduce grid strain.

Private-sector participants likewise highlighted the need to accelerate power generation projects to help address the country’s energy challenges.

MGEN Renewable Energy Inc. (MGreen) President and Chief Executive Officer (CEO) Dennis Jordan said the Manila Electric Co. (Meralco) RE subsidiary has already added 250 megawatts (MW) of capacity and expects to bring in another 250 MW once approved by NGCP.

“I think important for us is our ability to respond, and really accelerate some of these projects that we’re actually doing,” he said.