The Philippines Department of Energy (DOE) has issued a new policy framework that officially prioritises nuclear power and emerging technologies over coal.
Under the new guidelines, generation companies are encouraged to develop projects based on the government’s preferred energy mix, which emphasises specific technology choices and development timelines. As the administration pushes for an open-grid transition toward renewables, the policy classifies power technologies into three distinct categories: baseload, mid-merit, and peaking.
The most significant change is in the baseload category, which provides the steady, 24-hour supply required by the economy. DOE now gives the highest priority to nuclear energy and emerging steady-state technologies above all others. This is followed by coal co-firing, which mixes biomass or ammonia with coal, while conventional coal-fired plants are relegated to the lowest priority.
For mid-merit power, which fluctuates to meet daily demand swings, the DOE identified hybrid renewable systems and flexible technologies such as gas-fired plants as primary sources. This category also encompasses hydropower and battery energy storage systems capable of rapid output adjustments. Peaking power, used during brief intervals of maximum demand, will rely on fast-start renewables and short-duration storage facilities.
Energy Secretary Sharon Garin said the policy was a vital step in reducing operational risks and improving long-term project planning. She noted that grid reliability remains non-negotiable as the country accelerates its energy transition. The systematic matching of technologies to specific system needs is intended ensure a secure and affordable energy supply while simultaneously reducing dependence on imported fuels, she explained.
The Philippines is seeking to reduce power costs that are among the highest in Southeast Asia. By providing a clear roadmap for the private sector, DOE is hoping to attract investment into cleaner alternatives without compromising the stability of a grid frequently stressed by seasonal demand spikes. DOE sets load-based categorisation of power resources to ensure adequacy, reliability, and system flexibility.
DOE’s Department Circular (DC) that prescribes the new policy framework aims to enhance the sufficiency of generation and ensure the adequacy and reliability of electric power supply across the grid and distribution systems.
The policy recognises that a reliable power system requires a deliberate mix of resources that can (i) supply electricity continuously, (ii) adjust output as demand changes throughout the day, and (iii) respond rapidly during peak periods, while also providing ancillary services needed to maintain grid stability. By establishing the three categories of generation resources, DOE seeks to improve sector-wide planning consistency, reduce operational risk, and enable an orderly transition toward a cleaner, more resilient, and more self-sufficient energy future.
“Reliability is non-negotiable, even as we accelerate the energy transition,” said Garin. “This policy provides a systematic approach for matching the right technologies to the right system needs – baseload, mid-merit, and peaking, so that electricity remains secure and affordable while we increase renewable energy integration and reduce dependence on imported fuels.”
To support the optimal energy mix, DOE emphasised that Distribution Utilities (DUs) must consider the load categorisation in their Distribution Development Plans (DDPs), particularly in the Power Supply Procurement Plans (PSPPs). This will ensure that procurement decisions reflect system requirements for adequacy, flexibility, and reliability, especially as demand patterns evolve and the grid integrates higher shares of variable renewable energy.
DOE also encouraged Generation Companies (GenCos) and energy resource developers to align proposed power projects with generation mix requirements and to take into account the load categories in project planning, development timelines, and technology selection.
The new policy is intended to strengthen planning discipline across the sector by clarifying how various resources contribute to system needs, especially as the grid accommodates higher shares of variable renewable energy requiring sufficient flexibility, fast response, and ancillary services to maintain stability.
