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Manila Bulletin devider Philippines devider National devider DOE should deep-six 'build-anywhere' practice of power plants; De Jesus explains why

DOE should deep-six 'build-anywhere' practice of power plants; De Jesus explains why

Published Aug 9, 2026 02:24 am

At A Glance

  • Rep. Presley de Jesus presses DOE to regulate plant siting, stressing coordination with NGCP to cut technical losses.
  • DOE says future Green Energy Auction rules will require proximity to load centers and transmission readiness.
  • De Jesus urges immediate policy institutionalization to improve efficiency and lower avoidable costs.


PHILRECA Party-list Rep. Presley de Jesus has placed the onus on the Department of Energy (DOE) to end its habit of allowing generation companies to build power plants wherever they choose.
This, as De Jesus cited in a recent House Committee on Energy hearing that strategic siting near existing transmission facilities was key to reducing technical system losses.
De Jesus, a deputy minority leader, questioned whether or not the DOE has a policy requiring generation companies to coordinate with grid operator National Grid Corporation of the Philippines (NGCP) when selecting project sites.
"Napapansin ko dito, kung saan gusto ng generation companies, doon sila nagtatayo. Para ma-minimize ang technical loss, may policy ba kayo? At coordinated ba ito sa NGCP?" he asked.
(I notice here that wherever the generation companies want, that’s where they build. To minimize technical loss, do you have a policy? And is this coordinated with NGCP?)
The panel hearing, held last Wednesday, Aug. 5, kicked off discussions on the proposed abolition of the system loss charge--seen as an unfair, passed-on charge to consumers. No less that President Marcos called on solons to scrap it during his July 27 State of the Nation Address (SONA).
The DOE said it is already coordinating with NGCP through the Transmission Development Plan (TDP) and will require future bidders under the Green Energy Auction (GEA) to consider transmission readiness and proximity to major load centers when choosing plant locations.
According to the DOE, the policy aims to reduce technical system losses by shortening the distance electricity travels through the transmission network.
The guidelines are expected to be included in the terms of Rrference for the next GEA within the next two months.
De Jesus--a member of the "Power Bloc" in the House of Representatives-- urged DOE to move beyond planning and immediately institutionalize the policy.
He emphasized that closer coordination with NGCP in siting future power plants was a long-term solution to reducing technical system losses, improving transmission efficiency, and ultimately lowering avoidable costs in the power system.

Related Tags

NGCP DOE Presley de Jesus PhilRECA Party-list system loss charge SONA PBBM Power plants
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