ERC set to issue ESS guidelines

THE Energy Regulatory Commission (ERC) will soon issue its own guidelines covering Energy Storage Systems (ESS).

‘The ERC is currently deliberating on the draft rules on ESS, which will define the playing field for the next decade,’ ERC chairman Francis Saturnino Juan said.

ESS captures energy and store it for later use. ESS technologies include battery energy storage systems, flywheel and compressed air, among others.

The ERC chief stressed that these rules will enable fair market access for storage, whether as a generation asset, a transmission asset, a distribution asset, or simply an asset or device. The rules aim to establish clear guidelines on ownership models, connection agreements, and safety standards.

Juan shared this during the recent Energy Storage Summit Asia 2025, organized by the Philippine Solar and Storage Energy Alliance (Pssea). The ERC chief emphasized the vital role of ESS in efficiently and reliably integrating renewable energy (RE) in the generation mix and unlocking a resilient, decarbonized future.

In his keynote address, Juan underscored the rising demand for electricity as the Philippine economy expands, industries modernize and people gain greater access to cutting edge technologies such as electric vehicles (EVs) and data centers. Simultaneously, the Philippines has amplified its efforts towards renewable energy transition.

‘We have targeted to achieve a renewable energy share of 35% by 2030 and 50% by 2040. These ambitious yet essential goals are crucial for securing a low-carbon, inclusive, and competitive future. However, the challenge we face is no longer about generating clean power. Instead, it lies in how we store, balance, and deliver it reliably – day and night, during calm seas or typhoons, and across more than 7,000 islands,’ Juan noted.

The ERC is, likewise, reviewing existing market and technical regulations – including the Philippine Grid Code (PGC), Philippine Distribution Code (PDC), and Wholesale Electricity Spot Market (WESM) rules-to integrate grid-forming inverters and synthetic inertia into system planning; specify dispatch and scheduling protocols for ESS within the WESM; establish distribution-level interconnection and smart-metering requirements; and strengthen data exchange, cybersecurity, and safety standards for ESS operations.

Juan noted that the Philippines has made significant progress in adopting energy storage, from the long-operating Kalayaan Pumped Storage Power Plant to the most recent Green Energy Auction Program, where many RE projects now integrate storage components.

‘The era of passive consumption is over. We are now in the age of active, intelligent energy management. The ESS is no longer a piece of hardware; it is the beating heart of the new grid,’ the ERC chief emphasized.

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