The Energy Regulatory Commission (ERC) has adopted new rules allowing entities other than the National Grid Corporation of the Philippines (NGCP) to finance and construct certain transmission facilities, a move aimed at accelerating the integration of renewable energy projects and other new power plants into the national grid.
The rules, contained in ERC Resolution No. 18, Series of 2026, establish the implementing framework for the development, ownership and operation of point-to-point limited transmission facilities, as well as the financing and construction of transmission projects by entities other than the country’s transmission network provider.
The ERC said the measure is designed to address transmission infrastructure delays that have slowed the connection of new generation facilities to the grid, including renewable energy projects that require new transmission lines and substations before they can deliver electricity to consumers.
Under the framework, qualified generation companies may finance and construct Associated Transmission Projects (ATPs) identified by the Department of Energy (DOE). These projects include transmission facilities directly linked to new power plants and needed to connect them to the grid.
Meanwhile, the National Transmission Corporation (TRANSCO) may undertake Priority Projects or engage government agencies, government-owned and controlled corporations, and private entities to construct such projects on its behalf pursuant to DOE Circular No. DC 2026-02-0007.
The projects covered by the rules include new transmission lines, substations, switchyards and other facilities needed to accommodate additional generation capacity and strengthen the country’s transmission network.
“Reliable and adequate transmission infrastructure is essential to ensuring that electricity generated by new power plants actually reaches Filipino homes and businesses,” ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said.
Juan said the implementing rules provide a clear regulatory pathway for critical transmission projects to be completed more quickly while maintaining transparency, accountability and consumer protection.
“For consumers, this means helping bring more power supply into the grid, reducing bottlenecks, supporting the integration of renewable energy, and ultimately contributing to a more secure, reliable and affordable electricity system,” he said.
The Philippines is seeking to accelerate renewable energy development as it works toward increasing the share of renewables in the power generation mix.
However, industry stakeholders have repeatedly identified transmission constraints as one of the biggest challenges facing the sector, with several projects requiring new grid infrastructure before reaching commercial operation.
The ERC said the new rules also establish terms governing project approvals, construction timelines, facility turnover to the transmission network provider and the recovery of project costs.
The regulator will retain authority to review the prudency of project expenditures and determine the fair and reasonable value of transmission projects before allowing any cost recovery mechanism.
According to the ERC, the measure supports broader government efforts to strengthen energy security, accelerate the country’s energy transition and ensure the timely integration of new generation capacity needed to meet rising electricity demand.