Embedded Generators (EG)
An Embedded Generator (EG) is a generating unit that is indirectly connected to the Grid through the distribution system that supplies power to its host Distribution Utility (DU) or to the Grid [DC2019-02-0003, §2(e), 2019-02]. The governing framework — Digest: DC2019-02-0003: Providing for the Framework Governing the Operations of Embedded Generators — was issued to resolve licensing, connection, market-registration, dispatch, ancillary-service, and metering gaps that Electric Power Industry Participants raised as EGs proliferated on distribution networks under RA 9136 (EPIRA) [DC2019-02-0003, Whereas recital 5, 2019-02].
Distinguished from related terms
| Term | Definition | Regulatory treatment |
|---|---|---|
| Embedded Generator (EG) | Generating unit indirectly connected to the Grid via a distribution system, feeding its host DU or the Grid | Subject to this framework; may be WESM-mandatory or voluntary |
| Distributed Generation | Small generation entities supplying directly to the distribution Grid, each ≤100 kW | Distinct category, not itself an EG by definition |
| Self-Generating Facility | End-User-owned generation for own consumption/internal use (excludes households, clinics, hospitals, medical facilities) | Excluded from this Circular’s scope entirely |
[DC2019-02-0003, §2, §3, 2019-02]
WESM mandatory-registration thresholds
An EG must register in the WESM if it meets any of the following [DC2019-02-0003, §6.1, 2019-02]:
| Criterion | Threshold |
|---|---|
| Maximum Stable Load (Pmax) at or above regional threshold | 10 MW (Luzon) · 5 MW (Visayas) · 5 MW (Mindanao) |
| Pmax below threshold, but with a contract outside its host DU, an intent to sell to WESM, or grid injection | (no separate MW floor) |
| Resource type | All Feed-in-Tariff (FIT)-eligible RE plants |
EGs below these criteria may register voluntarily [DC2019-02-0003, §6.2, 2019-02]. DOE reviews the mandatory-registration criteria annually with the Market Operator (MO) and System Operator (SO) [DC2019-02-0003, §6, 2019-02].
Predecessor rule (Mindanao only): DC2017-05-0009 (2017, WESM Mindanao launch) had set a single national-style threshold of 5 MW (plus the sub-5MW/FIT carve-outs) for Mindanao; DC2019-02-0003 restates and differentiates this into the three regional thresholds above, extending explicit treatment nationwide [DC2019-02-0003, Whereas recital 4 and §6.1, 2019-02]. DC2017-05-0009 is not yet in this corpus.
Licensing and connection requirements
All EGs must secure an ERC Certificate of Compliance [DC2019-02-0003, §4.1, 2019-02] and meet Philippine Distribution Code (PDC) connection/operational requirements [DC2019-02-0003, §5.1, 2019-02]. WESM-registered EGs additionally coordinate Remote Terminal Unit (RTU) and metering installation with the Transmission Network Provider (TNP) and their WESM Metering Service Provider (MSP), and must obtain DOE endorsement for Grid Impact and System Impact Studies before construction [DC2019-02-0003, §5.2, 2019-02]. DUs entering affiliate-EG supply agreements must observe EPIRA §45 market-share/bilateral-contract limits and Competitive Selection Process Rules [DC2019-02-0003, §4.2, 2019-02].
Dispatch and Ancillary Services participation
WESM-registered EGs follow SO Central Dispatch instructions issued through their host DU [DC2019-02-0003, §7.1, 2019-02]. EGs may also provide Ancillary Services subject to Philippine Grid Code (PGC)/PDC criteria, under a dispatch protocol the SO establishes with the MO and host DUs [DC2019-02-0003, §8, 2019-02]. See Ancillary Services (AS) for the general AS procurement framework and Reserve Market and Electricity Derivatives (WESM) for the co-optimized market channel; both later circulars (DC2021-03-0009 and others) confirm EG eligibility as an Ancillary Service Provider under this circular’s protocols.
Institutional responsibilities
| Party | Role toward EGs |
|---|---|
| DUs | Internal connection procedures; PGC/PDC-compliant operation oversight; WESM-registration reporting/assistance; transparent wheeling charges [DC2019-02-0003, §10, 2019-02] |
| MO | Proposes WESM Rules/Market Manual amendments; ensures mandated EG registration; reports EG market impact to DOE [DC2019-02-0003, §11, 2019-02] |
| TNP | Provides EG monitoring/control/communication equipment; reports installation status [DC2019-02-0003, §12, 2019-02] |
| SO | Conducts Grid/System Impact Studies; ensures compliant EG monitoring/dispatch; reports grid impact [DC2019-02-0003, §13, 2019-02] |
| ERC | Issues/revises supporting guidelines (Grid Code, Distribution Code, AS Procurement Plan, Open Access rules, competitive metering framework, MSP licensing, Certificate of Compliance rules); enforcement and penalties [DC2019-02-0003, §14, 2019-02] |
Scope exclusions
Self-Generating Facilities, Distributed Generation used for net metering, and off-grid generation facilities fall outside this framework entirely [DC2019-02-0003, §3, 2019-02].