ERC Advances Grid Reforms To Strengthen Energy Security And Renewable Growth
- June 19, 2026
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The Energy Regulatory Commission (ERC) is advancing reforms aimed at strengthening the country’s energy security, combining efforts to modernize grid operations with new rules that allow qualified entities other than the National Grid Corp. of the Philippines (NGCP) to develop key transmission facilities needed to support the country’s growing renewable energy sector.
ERC Chairperson Francis Saturnino Juan said the country’s long-term energy security will increasingly depend on the resilience and intelligence of its power delivery system as renewable energy sources account for a larger share of the generation mix.
Speaking through ERC Market Operations Service Director Sharon Montaner during a Management Association of the Philippines energy forum, Juan emphasized that securing electricity supply is no longer solely a matter of adding generation capacity.
“Because in the years ahead, energy security will depend not only on how much power we generate, but on how intelligently and resiliently we manage the system that delivers it,” he said.
Grid Modernization
According to Juan, the country’s power infrastructure must evolve alongside changing patterns in electricity generation and consumption, particularly as renewable energy projects continue to expand.
He noted that solar power contributes significantly to electricity supply during daylight hours but creates operational challenges when production drops in the late afternoon while consumer demand rises in the evening.
This mismatch between generation and demand requires a power system capable of responding rapidly to maintain stability and reliability, he said.
To address the issue, Juan called for wider deployment of energy storage technologies, including Battery Energy Storage Systems (BESS) and pumped-storage facilities. These technologies can store excess electricity produced during periods of high solar generation and release it when demand peaks later in the day.
The ERC chief said energy storage solutions would help stabilize the grid amid sudden shifts in weather conditions and fluctuations in electricity demand.
Juan also advocated stronger ancillary services and more responsive reserve systems supported by regulatory frameworks that enable flexible power resources to participate in maintaining grid reliability.
He likewise stressed the importance of demand-side participation, encouraging consumers and businesses to shift or reduce electricity use during peak periods through measures such as time-of-use pricing, demand response programs, and interruptible load arrangements.
New Transmission Framework
Complementing these modernization efforts, the ERC has also adopted implementing rules that open the development of certain transmission facilities to entities other than NGCP.
The new framework covers the development, ownership, operation, financing, and construction of point-to-point limited transmission facilities, as well as associated transmission projects that can be undertaken by qualified companies.
The regulator said the move is intended to accelerate the connection of new power plants to the national grid, attract additional private-sector investment in transmission infrastructure, reduce project delays, and improve the reliability of electricity supply while maintaining regulatory oversight.
The initiative comes as power generation companies continue to roll out projects across the country, particularly renewable energy developments, while transmission facilities needed to connect these projects have struggled to keep pace.
According to the ERC, delays in building transmission infrastructure have slowed the integration of new generation capacity into the grid, limiting the benefits of investments already being made in the power sector.
DOE-Backed Reforms
The regulatory framework stems from Department of Energy (DOE) circulars issued earlier this year aimed at accelerating the construction of transmission facilities needed to connect new power plants, especially renewable energy projects.
The circulars established rules governing project implementation, cost allocation, financing responsibilities, and cost recovery mechanisms for transmission assets.
Under the DOE directives, the ERC was tasked with developing the regulatory framework covering associated transmission projects to be undertaken by qualified entities, the implementation of priority projects by the National Transmission Corp. (TransCo), and mechanisms governing payment, recovery, and pass-through charges.
Following the adoption of the implementing rules, the ERC directed NGCP and TransCo to submit a draft agreement that will support the framework’s implementation. The regulator will also review and approve relevant agreements as provided under the DOE circulars.
Source:
https://tribune.net.ph/2026/06/13/power-relief-eyed-as-visayas-plants-restore-operations
