October 24, 2025 | 12:00am
MANILA, Philippines — The Energy Regulatory Commission (ERC) is looking to remove the capacity limit on prospective power plants, allowing developers to build larger-scale projects.
In a draft resolution, the ERC plans to lift the prescribed capacity limits of 650 megawatts per generating unit in Luzon and 150 MW in Visayas and Mindanao.
“In light of the developments in the energy and reserves market, the ERC finds that additional capacities can be accommodated and should be made available to address the needs of the grid and its users,” the regulator said.
This follows the full commercial operations of the reserve market, a segment in the power spot market where backup electricity capacity is bought and sold to ensure grid reliability and stability.
By removing the cap, power generating units across the country may soon be able to inject larger capacities into the grid amid growing power demand.
“The ERC is committed to promulgating rules that will entice capacity addition in the generation sector through efficient resources and risk allocation by the investors based on the prevailing market and technology conditions,” it said.
To support this move, the ERC will also require the transmission network provider to consider provisions in the transmission development plan to accommodate upcoming large-capacity generating facilities.
According to the ERC, interested parties may submit their comments on the matter until Nov. 3, two days before the scheduled public consultation.
Under the Electric Power Industry Reform Act, the ERC is mandated to promote competition and encourage market development.
