MANILA — All new variable renewable energy (VRE) plants with a capacity of at least 10 megawatts (MW) are now required to integrate an energy storage system (ESS), the Department of Energy (DOE) announced.

The directive follows Department Circular No. DC2026-02-0008, which updates the ESS policy framework.

“The updated framework advances the government’s commitment to a just energy transition by supporting ESS deployment and ensuring its systematic integration in both grid-connected and off-grid areas, enabling higher renewable energy penetration while preserving power quality and system reliability,” the DOE said.

The agency encouraged ESS installations to include grid-support capabilities, such as grid-forming (GFM) inverters, which help stabilize voltage and frequency. These features are aimed at mitigating the variability of renewable output, optimizing dispatch, minimizing generation losses, and strengthening overall grid stability.

“Energy storage is not only about storing surplus energy, it is about strengthening the grid’s capability to absorb more renewable while maintaining reliability,” Energy Secretary Sharon Garin said.

“This policy ensures that ESS integration becomes part of system planning and project development, supporting better outcomes for consumers,” she added.