The Energy Regulatory Commission (ERC) has temporarily suspended the power delivery service (PDS) charges for qualified energy storage systems (ESS) to support grid reliability.
The commission noted that this time-bound measure exempts electricity drawn solely for storage, specifically targeting ‘storage intake energy’ used for grid support or reinjection.
ERC Chairman Francis Saturnino Juan stated this move removes disincentives to use energy storage systems when needed most to support grid reliability.
‘Our goal is to support grid reliance,’ Juan said.
He defined PDS as the charges for the transmission wheeling services of the National Grid Corporation of the Philippines (NGCP). Battery storage systems pay PDS charges while charging because they function as a transmission load.
The agency added that regular transmission charges and other applicable fees still apply to electricity used for final consumption. ESS facilities, it added, must register with the NGCP and use separate metering or verifiable tools to measure the qualified storage.
The commission said it will maintain full oversight to ensure transparency, accountability, and consumer protection while implementing the temporary measure.
‘This reform allows energy storage to be used more effectively in times of need, helping stabilize supply and ultimately protect consumers from volatility,’ Juan said.
An official of the Aboitiz Power Corp. explained during an energy summit last November that energy storage systems-which capture and store surplus electricity for later strategic use-are crucial in addressing intermittency and improving grid reliability, especially as more variable renewable energy capacities like solar and wind are integrated into the power ecosystem.
‘Energy storage systems make renewable energy dispatchable and dependable,’ said AboitizPower Vice President for Energy Storage Systems Juris Sadornas. ‘It’s really about how fast and agile our technical teams can mobilize and design so that we can put out these batteries on the ground.’
‘For each of the countries, not only those with less advanced infrastructure, but also in China, the grid cannot consume all of the renewable energy,’ added Jinko ESS Solution Head Charles Teng in the same panel. ‘So, energy storage installations in the next couple of years absolutely are going to be a big trend for renewable energy to continue to grow.’
For the Philippines, an archipelagic nation with fragmented grid systems and ambitious RE goals, he said it is projected to require over 466 gigawatt-hours (GWh) of energy storage by 2040 and 1,021 GWh by 2050, as per the Philippine Energy Plan 2023-2050.