The Energy Regulatory Commission (ERC) of the Philippines says it is working to modernize the country’s transmission grid through updates set out in the 2026 edition of the Philippine Grid Code, rules operating the country’s high-voltage power transmission system. 

The updated code is geared towards helping the grid accommodate variable renewable energy, including solar, alongside storage technologies such as battery energy storage systems, pumped-storage hydropower and compressed air energy storage.

ERC says it will incorporate new technical requirements for solar-plus-storage plants that use grid-forming inverters, as well as standards applicable to standalone storage installations that use grid-forming inverter technologies, in order to improve grid stability and system response.

Other reforms are set to include new cybersecurity requirements, grid planning standards and expanded reserve and reliability mechanisms.

Francis Saturnino C. Juan, ERC Chairperson and CEO, said that the 2026 edition of the grid code is “designed to ensure that as we bring in more renewable energy and advanced technologies, our grid remains stable, reliable, and secure.”

“We are seeing a fundamental shift in how electricity is generated and delivered. Our regulatory framework must evolve accordingly,” he explained. “Through the [updated grid code], we are building a grid that is not only resilient but also capable of supporting cleaner and more sustainable energy sources.”

ERC says the new grid code follows extensive consultations that took place in January across Luzon, Visayas, and Mindanao.

A series of public consultations will take place this week with stakeholders including generation companies, transmissions operators and distribution utilities, ahead of the finalization of an updated grid code.

ERC is also proposing a series of changes to the framework governing demand side programs, such as net metering and distributed energy resources.

Among the proposals are plans to reduce interconnection timelines for net-metering applications from 20 working days to 10, with applications given automatic or deemed approval if distribution utilities fail to install bidirectional meters on time.

The framework also removes the 1 MW distributed energy resources cap, gives digital submissions and e-signatures full legal validity, introduces multi-site crediting and priority dispatch for renewable energy in off-grid areas.

ERC also says it will revisit the additional cost imposed for residential bidirectional meters in order to address affordability of the scheme 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 prosumers in the Philippines as of June 30, with a combined capacity of 232 MW. There were a further 181 distributed energy resource participants covering an additional 226 MW.

The commission says that with its proposed new rules, it is aiming to significantly increase deployment 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 power, while ensuring that 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 included electronic verifications and multi-site and aggregate net-metering.

Earlier this year, the government of the Philippines mandated energy storage systems for intermittent renewable energy plants over 10 MW.

The country is currently experiencing a surge in solar panel imports with residential and commercial customers looking to install solar as residential electricity tariffs rise to the highest in southeast Asia.