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Manila Bulletin devider Business devider Trade & Industry devider DOE mandates energy storage for new renewable plants

DOE mandates energy storage for new renewable plants

Published Feb 26, 2026 02:22 pm
The Department of Energy (DOE) has mandated that developers of large-scale renewable power plants integrate energy storage systems into their facilities, a move intended to stabilize the national grid and unlock stalled generation capacity.
Under a department circular issued Thursday, Feb. 26, the DOE is requiring all variable renewable energy plants with a capacity of at least 10 megawatts to install energy storage systems (ESS).
According to the DOE circular, the storage capacity must be equivalent to at least 20 percent of the plant’s total installed capacity. The mandate primarily targets prospective projects as the government seeks to minimize the technical fluctuations inherent in solar and wind power.
The policy shift comes as the government struggles to integrate growing pipeline of clean energy projects into an aging grid infrastructure. By requiring localized storage, the DOE said it aims to reduce generation losses and improve the reliability of power dispatch.
Energy Secretary Sharon Garin said in a statement on Thursday, Feb. 26, that the framework is designed to move beyond simple supply storage, focusing instead on the grid’s ability to absorb higher volumes of intermittent power.
“This policy ensures that ESS integration becomes part of system planning and project development, supporting better outcomes for consumers,” Garin said.
The DOE is also pushing developers to adopt grid-forming inverters, advanced components that allow renewable plants to mimic the behavior of traditional coal or gas plants by providing “virtual inertia,” which helps maintain stable voltage and frequency levels.
The department’s updated framework acknowledges these technologies for their fast-acting responses, which are critical for the quality of transmission and distribution networks.
Under the new rules, transmission providers and distribution utilities are required to incorporate ESS assets into their long-term infrastructure strategies. This includes the Transmission Development Plan and the Distribution Development Plan.
The agency noted that storage facilities should be utilized for frequency control and as an alternative supply during “islanding” events, where a portion of the grid becomes temporarily separated from the main network.
The adjustments serve as a supplementary framework to enhance the implementation of the existing policy on energy storage integration for both grid-connected and off-grid areas.
Moving forward, the government plans to embed ESS requirements into the Philippine Energy Plan and the Microgrid Energy Development Plan to ensure the technology is prioritized in the country's broader energy transition.
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