ERC lifts capacity limits on new power facilities

MANILA, Philippines — The Energy Regulatory Commission (ERC) has lifted capacity limits on new power plants, allowing developers to build larger facilities to help meet the country’s growing electricity demand.

Under Resolution 34, Series of 2026, the ERC scrapped the previous limits of 600 megawatts per generating unit in Luzon and 150 MW in the Visayas and Mindanao.

The reform seeks to spur investments in new power-generation capacity, strengthen market competition and help lower electricity costs for consumers.

“By removing outdated capacity restrictions, we are opening opportunities for greater investments and additional power supply,” ERC chairman and CEO Francis Saturnino Juan said.

The policy gives developers and investors greater flexibility to propose projects suited to market demand, technological advancements and grid capacity.

It also aims to expand power utilities’ supply options and support their long-term electricity procurement plans.

The ERC expects the measure also to help ease the risk of power shortages amid months of electricity supply constraints that have plagued the Visayas since May.

“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,” Juan said.

To ensure transmission network stability, all proposed grid-connected power plants must undergo a system impact study with the National Grid Corp. of the Philippines (NGCP).

The study determines whether the national grid has sufficient capacity to accommodate a new connection and identifies any upgrades needed, including additional transmission lines, transformers or substations.

As the country’s sole transmission operator, the NGCP is responsible for operating, maintaining and developing the state-owned power grid.

“Consumers must benefit from adequate supply, fewer risks of power interruptions and fairer electricity costs without compromising grid safety,” Juan said.