The Energy Regulatory Commission (ERC) of the Philippines says it is working to modernize the country’s transmission grid through updates outlined in the 2026 edition of the Philippine Grid Code, rules for the country’s high-voltage transmission system.
The updated code aims to help the electric grid accommodate variable renewable energy, including solar, in addition to storage technologies such as battery energy storage systems, pumped hydro and compressed air energy storage.
ERC says it will include new technical requirements for solar-plus-storage installations using grid-forming inverters, as well as standards applicable to standalone storage installations using grid-forming inverter technologies, to improve grid stability and system response.
Other reforms will include new cybersecurity requirements, grid planning standards and expanded reserve and reliability mechanisms.
Francis Saturnino C. Juan, chairman and CEO of ERC, said the 2026 edition of the grid code “is designed to ensure that as we adopt more sustainable energy and advanced technologies, our grid remains stable, reliable and secure.”
“We are seeing a fundamental shift in the way electricity is generated and delivered. Our regulatory framework must evolve accordingly,” he explained. “By the [updated grid code]we are building a network that is not only resilient, but can also support cleaner and more sustainable energy sources.”
ERC said the new grid code follows extensive consultations that took place in Luzon, Visayas and Mindanao in January.
A series of public consultations will take place this week with stakeholders, including generation companies, transmission operators and distribution companies, ahead of the finalization of an updated network code.
ERC also proposes a series of changes to the framework for demand-side programs, such as net metering and distributed energy resources.
Proposals include plans to shorten interconnection timelines for net metering applications from 20 working days to 10, with applications automatically or deemed approved if distribution companies fail to install bi-directional meters on time.
The framework also removes the 1MW limit for distributed energy resources, gives digital submissions and electronic signatures full legal validity, introduces multi-site crediting and priority dispatch for renewable energy in off-grid areas.
ERC also says it will review the additional costs imposed for residential bi-directional meters to address the affordability of the system and will consider exempting small-scale systems from technical studies by limiting testing requirements to essential safety checks.
According to figures on ERC’s website, there were 23,684 net metering consumers in the Philippines as of June 30, with a combined capacity of 232 MW. There were an additional 181 distributed energy resource participants, generating an additional 226 MW.
The committee says that with the proposed new rules it wants to significantly increase the commitment under both schemes.
“We are removing the barriers that have long prevented consumers from participating in the energy transition,” Juan said. “These reforms make it faster, more affordable and more accessible for Filipinos to generate their own energy, while ensuring the system remains fair, reliable and responsive to the needs of the public.”
The commission’s latest update follows a series of proposed net metering reforms announced by the government of the Philippines earlier this year, which also include electronic verifications and multi-site and aggregated net metering.
Earlier this year, the government of the Philippines mandated energy storage systems for intermittent renewable power plants above 10 MW.
The country is currently experiencing a surge in solar panel imports, with residential and commercial customers looking to install solar power, while residential electricity rates are rising to the highest in Southeast Asia.
