DOE requires storage for big solar, wind projects

The Department of Energy has issued Department Circular No. DC2026-02-0008 requiring variable renewable energy power plants to integrate energy storage systems in both development and grid integration.

Under the circular, all variable renewable energy projects with installed capacity of 10 megawatts and above must also install energy storage equivalent to 20% of the plant’s capacity, subject to system studies and technical requirements.

The new framework expands on and amends the existing Energy Storage Systems Policy under DC2023-04-0008, formalizing storage integration in both grid-connected and off-grid areas as part of system planning.

Variable renewable energy plants typically refer to solar and wind projects whose output fluctuates with weather and time of day, which limits how reliably they can be dispatched compared with conventional plants.

Energy storage systems address that intermittency by storing electricity when generation is strong and dispatching it when output is low, while also helping manage voltage and frequency to keep the grid stable as more renewables come online.

“Energy storage is not only about storing surplus energy, it is about strengthening the grid’s capability to absorb more renewables while maintaining reliability,” Energy Secretary Sharon S. Garin said.

“This policy ensures that ESS integration becomes part of system planning and project development, supporting better outcomes for consumers,” Garin said.

The DOE also encouraged storage installations to include grid-support capabilities such as grid-forming inverters to stabilize voltage and frequency and maximize operational value.

The updated framework also notes that energy storage with virtual inertia or fast-acting system response may be deployed to improve power quality across transmission and distribution networks.

The policy directs the transmission network provider and distribution utilities to consider energy storage facilities in grid reinforcement strategies where storage can provide critical system services.

The DOE cited services such as voltage stability, frequency control, and alternative supply during temporary separation from the main grid.

To institutionalize storage integration, the circular instructs the transmission network provider to incorporate energy storage considerations in the Transmission Development Plan and recommend guidelines for grid-support capabilities.

The DOE said periodic studies and tests will be conducted to support uniform technical requirements, taking into account international standards and the Philippine Grid Code.

The department also announced that energy storage will be reflected in the next update of the Philippine Energy Plan and considered in the review of the Transmission Development Plan, Distribution Development Plan, and Microgrid Energy Development Plan.

The DOE positioned storage as a system resource meant to support wider grid planning as the country adds more variable renewable energy capacity.

The move comes as the government pushes to raise the share of renewables in the power generation mix over the next decade, a shift that has heightened focus on flexibility tools such as batteries to manage rapid changes in supply and demand.

The DOE said the updated framework is designed to strengthen investment signals, improve system performance, and enable the country’s clean energy targets without compromising reliability.