The Energy Regulatory Commission (ERC) has issued a resolution removing the capacity limit for prospective power generating plants.
This measure aims to encourage investments in new generation capacity, promote competition in the electricity market, and support the development of a more affordable power supply for Filipino consumers.
The Resolution No. 34 removes the previous limits of 600 megawatts (MW) per generating unit in Luzon and 150 MW in the Visayas and Mindanao, allowing developers to propose larger generating plants based on market demand, technological advancements, and grid capacity.
ERC Chairperson and CEO Atty. Francis Saturnino Juan emphasized that the reform aims to address growing electricity demand while safeguarding consumers.
“More generation capacity can strengthen competition, improve energy security, and help achieve more competitive electricity prices for Filipino consumers.”
“By removing outdated capacity restrictions, we are opening opportunities for greater investments and additional power supply. More generation capacity can strengthen competition, improve energy security, and help achieve more competitive electricity prices for Filipino consumers,” Juan said.
To protect grid stability, all proposed grid-connected generating plants must undergo a System Impact Study (SIS) conducted by the National Grid Corporation of the Philippines (NGCP) or its accredited providers.
The study will determine the potential impact of each proposed generating plant on the grid, including the grid’s ability to accommodate the proposed capacity without compromising reliability and security.
The Resolution also directs the System Operator to review reserve requirements and ancillary services—backup support needed to maintain the stability and reliability of electricity supply—particularly in view of the entry of larger generating plants.
“Our priority is not simply to add bigger generating plants, but to ensure that every additional megawatt contributes to a more dependable and efficient power system.”
“Our priority is not simply to add bigger generating plants, but to ensure that every additional megawatt contributes to a more dependable and efficient power system. Consumers must benefit from adequate supply, fewer risks of power interruptions, and fairer electricity costs without compromising grid safety,” Juan added.
For power developers and investors, the policy provides greater flexibility to develop projects suited to market and technology conditions. For distribution utilities and other energy stakeholders, additional generation capacity could expand supply options and support long-term power procurement planning.
For consumers, the reform is expected to encourage adequate electricity supply, reduce the risk of shortages, and promote competition that could help moderate electricity prices over time. Actual benefits will depend on project development, grid readiness, and market conditions.
Resolution No. 34, Series of 2026, takes effect immediately following its publication in the Official Gazette or a newspaper of general circulation.
