DOE Orders Power Plants to Finish Grid Testing by 2025

The Department of Energy (DOE) has mandated all power generation companies nationwide to complete Ancillary Services (AS) capability testing before December 31, 2025, citing noncompliance among more than 100 generating units across the Philippines.

In an official advisory released on May 29, 2025, Energy Secretary Raphael P.M. Lotilla emphasized that the directive is in accordance with Department Circular No. DC2019-12-0018, which requires AS testing and certification for all grid-connected power facilities.

“In view of the foregoing, all generation companies are hereby directed to coordinate with the System Operator to conduct the AS capability testing and secure their corresponding accreditation,” Lotilla stated.

A report submitted by the National Grid Corporation of the Philippines (NGCP) on March 3 revealed that 128 generating units have yet to comply with the mandatory testing requirement.

AS testing evaluates a power plant’s ability to provide critical support services—such as frequency regulation, voltage control, and spinning reserve—which ensure the reliability and stability of the national grid.

The NGCP, serving as the designated System Operator, is tasked with drafting and implementing a detailed schedule for the remaining tests.

The DOE has instructed that this schedule must prioritize unaccredited facilities in the Visayas region and align with the DOE-approved Grid Operating and Maintenance Program.

All testing activities must be concluded by year-end without disrupting existing or ongoing AS tests already scheduled for other plants, according to the advisory.

Within two weeks of the advisory’s issuance, the NGCP must finalize and submit the full testing schedule to the DOE and circulate it among all affected generation companies.

To ensure transparency and accountability, the NGCP must also provide monthly updates on the status of testing and accreditation, reporting directly to the DOE.

Failure to comply will result in the referral of noncompliant power generators to the Energy Regulatory Commission (ERC), which holds the authority to impose appropriate sanctions.

“For strict compliance,” Lotilla concluded, instructing generation companies to coordinate with the DOE’s Electric Power Industry Management Bureau for technical support and guidance.

The directive comes amid increased scrutiny on grid reliability and the role of ancillary services in mitigating brownouts and ensuring sufficient reserve margins during peak demand periods.

Energy experts note that with growing renewable energy integration, the reliability of AS-providing plants becomes even more essential to stabilize fluctuating power supply.

The DOE has made ancillary services a core focus of its 2025 Energy Security Strategy, aiming to modernize the power system and reduce unplanned outages and grid disturbances.