Smart Grid Policy Framework
The Philippine Smart Grid (SG) policy framework was established by DC2020-02-0003, signed February 6, 2020 by Secretary Alfonso G. Cusi. It sets a national vision of transforming the entire Philippine power sector into a “secure, stable, flexible, sustainable, digitally enabled, and interoperable system” by 2040, primarily through the Smart Distribution Utility Roadmap (SDUR) for Distribution Utilities (DUs). [DC2020-02-0003, §§1–10, 2020-02-06]
Guiding Principles
Six criteria govern the transition to a Smart Grid [DC2020-02-0003, §1, 2020-02-06]:
| Principle | Description |
|---|---|
| Safety | Improve system protection to prevent electrical risks to consumers |
| Reliability | Ensure delivery of power satisfying consumer demand; enhance grid response to disturbances |
| Efficiency | Reduce technical and non-technical power/energy losses in all sectors |
| Flexibility/Sustainability | Enhance power system response to demand/supply changes; allow smooth integration of emerging technologies |
| Resiliency | Improve grid ability to resist, absorb, and recover from hazards while restoring essential functions |
| Consumer Empowerment | Improve consumer awareness and engagement; promote EVs, net metering, smart monitoring |
Smart Grid Vision by 2040
The Philippines’ SG vision by 2040 encompasses [DC2020-02-0003, §4, 2020-02-06]:
- Self-healing grid
- Full Customer Choice
- Full implementation of RCOA, RPS, GEOP, and Net Metering
- Optimized ESS, Energy Management Systems (EMS), and DER Management Systems
- Virtual Power Plant (VPP) integration
- Islanding capability
- Demand Response, Demand-Side and Peak Load Management
- Smart Homes and Cities
Smart Distribution Utility Roadmap (SDUR)
The SDUR is the core implementation framework for DUs, defining a 5-level maturity path across two dimensions [DC2020-02-0003, §5.3 + Annex A, 2020-02-06]:
Network Dimension
| Level | Description |
|---|---|
| Level 0 | Manually operated; no SG plans or programs |
| Level 1 | Initiated installation of reclosers, sectionalizers, load break switches, fault circuit indicators, SCADA, and/or GIS |
| Level 2 | Initiated remote voltage regulators and/or capacitor banks; implemented DA, SA, DMS, OMS, and/or MWMS |
| Level 3 | Initiated FLISR and/or ADMS with Smart Distribution Automation (SDA) and Smart Substation Automation (SSA) |
| Level 4 | Fully implemented SDA and SSA |
Customer Service Dimension
| Level | Description |
|---|---|
| Level 0 | Conventional metering; no AMI plans |
| Level 1 | Initiated Automated Meter Reading (AMR) |
| Level 2 | Initiated AMI (Smart Meters + Data Management System + Data Center/Server) |
| Level 3 | Scaling up AMI deployments |
| Level 4 | Full AMI deployment |
Vision (all DUs by 2040): All Network and Customer Service features, plus VPP integration, islanding, demand response and peak load management, DER management systems, consumer education, GIS updating, interoperability, cybersecurity, and telecommunications infrastructure.
DUs must self-assess their current level against the SDUR and submit an SG deployment plan to DOE (copy to ERC). DUs may request acceleration or deferral with justification, subject to DOE endorsement and ERC approval. [DC2020-02-0003, §6.4, 2020-02-06]
Infrastructure Framework
Smart Power Generation (SPG)
GenCos shall integrate SPG into the transmission or distribution system consistent with the PDP. SPG technologies include DERs, Hybrid Systems, ESS, and Flexible Generation. SPGs are gradually to be integrated into wholesale and retail electricity markets. [DC2020-02-0003, §5.1, 2020-02-06]
Transmission Modernization
NGCP/TNP must formulate and submit to DOE and ERC an SG deployment plan and roadmap covering: wide area monitoring systems (WAMS), transmission automation and optimization, and long-term interconnection transmission expansion plans. The SG roadmap must form part of the annual Transmission Development Plan (TDP). [DC2020-02-0003, §§5.2, 6.3, 2020-02-06]
Interoperability
The SG Inter-Agency Steering Committee (SG-IASC) has primary responsibility to develop a framework of protocols and technical standards for SG interoperability. Protocols shall align policies, business models, and technology approaches to enable all electric participants to share information securely, enabling a technology-neutral SG network. [DC2020-02-0003, §5.6, 2020-02-06]
Cybersecurity
GenCos, TNP, and DUs must develop cybersecurity infrastructure compliant with relevant laws and internationally accepted standards. [DC2020-02-0003, §5.7, 2020-02-06]
Advanced Metering Infrastructure (AMI) Rules
DUs implementing AMI must comply with three requirements [DC2020-02-0003, §5.3.3, 2020-02-06]:
- Consumer Access Rights — consumers can access their own consumption data at any time
- Data Privacy — detailed energy consumption data treated as highly confidential; release to third parties only upon customer request and approval
- Consumer-Facing Devices — DUs may install additional energy monitoring devices upon consumer approval; DUs may charge additional ERC-approved rates for value-added services
EV Charging Stations
DUs may establish or facilitate EV charging stations. Private and government instrumentalities may install charging stations under non-regulatory (prevailing) pricing. DOE through the SG-IASC is mandated to formulate a National Strategy and Roadmap for EVs and EV Charging Stations consistent with the PEP. [DC2020-02-0003, §5.3.7, 2020-02-06]
Governance Structures
SG Inter-Agency Steering Committee (SG-IASC)
Originally created by DC2013-03-0003. Members: DOE, NPC, TransCo, PEMC, NGCP, NEA. Continued under DC2020-02-0003 with expanded functions: monitor SG initiatives to protect consumers and prevent anti-competitive practices; conduct regular review of SDUR; coordinate with government agencies, private sector, and international bodies before issuing SG policies. [DC2020-02-0003, §6.1, 2020-02-06]
SG Technical Working Groups (SG-TWGs)
Created by DOE Special Order SO2018-10-0057 (April 17, 2018). Six TWGs: [DC2020-02-0003, Recitals, 2020-02-06]
| TWG | Lead Bureau |
|---|---|
| Power Systems Operations | EPIMB |
| Sustainable and Renewable Energy | REMB |
| Standardization | EUMB |
| Information and Communication Technology and Cybersecurity | ITMS |
| Regulatory Support | Legal Services |
| Consumer Empowerment | Consumer Welfare and Promotion Office (CWPO) |
Regulatory Mandates
| Agency | Mandate |
|---|---|
| DOE | Prepare and formulate relevant SG policies and guidelines via SG-TWGs; endorse SG projects for BOI incentives; coordinate with DOST, DTI, DICT, NTC, BOC for standards and safety codes |
| ERC | Promulgate SG guidelines within 6 months of DC2020-02-0003 effectivity; amend Distribution Utility Planning Manuals; develop SG standards for Philippine Distribution Code and Grid Code; review DU/TNP CAPEX/OPEX applications for SG projects; ensure timely cost recovery approval |
| NEA | Provide concessional loans to SG projects by Electric Cooperatives (ECs); propose national strategy for SG deployments to ECs |
| NGCP/TNP | Formulate SG deployment plan + roadmap; incorporate into annual TDP |
[DC2020-02-0003, §§6–7, 2020-02-06]
Key Definitions
| Term | Definition |
|---|---|
| Advanced Metering Infrastructure (AMI) | Integrated system of smart meters, communications networks, and implementation systems enabling two-way communication between utilities and customers |
| Demand Response (DR) | Mechanism for utilities to curtail customer load or disconnect equipment remotely; participation via incentives/penalties |
| Distributed Energy Resources (DER) | Smaller power sources that can be aggregated to provide power for regular demand |
| Smart Grid | Modernized electrical grid using two-way/multi-way communication, real-time monitoring and control for improved reliability, security, efficiency; integrates bulk/flexible generation, DER, micro-grids, and EVs; empowers customers |
| Smart Distribution Utility (SDU) | Reliable, flexible, resilient, secure automated distribution system integrated with decentralized energy sources |
| Virtual Power Plant (VPP) | Network of aggregated decentralized medium-scale units (CHP, wind, solar PV, prosumers, ESS) dispatched centrally to relieve grid load |
| SDUR | Smart Distribution Utility Roadmap — the 5-level grid modernization framework for DUs, with 2040 as target year |
Implementation Status
As of PDP 2023-2050 (Ch. 3), DOE tracks SDUR progress through the DEPDMS (Distribution Expansion and Planning Data Management System). The PDP notes that DUs have reached varying SDUR levels, and the ERC has approved CAPEX/OPEX plans for grid modernization aligned with this framework. [PDP 2023-2050, Ch. 3, pp.118–119, 2023]
The Smart and Green Grid Plan (SGGP) — developed under the PDP 2023-2050 framework — extends the SDUR vision to include offshore wind, large-scale BESS, and HVDC interconnections. See Smart and Green Grid Plan (SGGP) .