Philippine Energy Policy Wiki

DC2019-08-0012 (Original ESS Policy)

Status
superseded
Confidence
high
Effective date
2019-08-01

Department Circular No. DC2019-08-0012 Providing a Framework for Energy Storage System in the Electric Power Industry Issued: 2019 | Secretary Alfonso G. Cusi

Overview

DC2019-08-0012 established the original regulatory framework for Energy Storage Systems (ESS) in the Philippine electric power industry. It defined four ESS technology types, nine permitted ESS purposes, duties per participant class, permitting requirements, WESM registration thresholds, and market participation rules. The 2019 framework was superseded by DC2023-04-0008 (April 2023), which refined the purpose list to eight and introduced a more granular COC framework [DC2019-08-0012, §§1–14, 2019].

Scope

All Electric Power Industry Participants: GenCos, Distribution Utilities, Directly Connected Customers (DCCs), End-Users, Qualified Third Parties (QTPs), Transmission Network Provider (TNP), System Operator (SO), Market Operator (MO) [DC2019-08-0012, §3, 2019].

ESS Technology Types (Section 2.7)

Four technologies, same as DC2023-04-0008 [DC2019-08-0012, §2.7, 2019]:

  • BESS — Battery Energy Storage System (electrochemical)
  • CAES — Compressed Air Energy Storage (pneumatic)
  • FES — Flywheel Energy Storage (kinetic)
  • PSH — Pumped-Storage Hydropower (gravitational)

DOE may identify additional ESS technologies in the future.

Nine ESS Purposes (Section 5)

DC2019-08-0012 listed nine permitted purposes [DC2019-08-0012, §5, 2019]:

  1. Provision of Ancillary Services — AS providers must be sized ≥20 MW for Luzon Grid, ≥5 MW for Visayas and Mindanao Grids (in compliance with PGC frequency response standards)
  2. Provision of Energy through Bilateral Supply Contracts or WESM Trading
  3. Manage the Penetration of Renewable Energy — ESS integrated in FiT-eligible VRE may not increase the VRE plant’s FiT-entitled capacity or generation; ESS may only be charged through the VRE output
  4. Auxiliary Load Management for Generation Companies
  5. Transmission/Distribution Facility Upgrades Deferment
  6. Transmission Congestion Relief — ESS connected to appropriate nodes can mitigate congestion when demand exceeds transmission network capability
  7. End-User Demand Management
  8. Distribution Utility Demand Management
  9. Distribution Utility Power Quality Management

Note: DC2023-04-0008 reduced this to eight purposes by removing Purpose 6 (Transmission Congestion Relief) as a separate category.

Duties per Participant Class (Section 4)

GenCos: May own/operate ESS as stand-alone or integrated facility; must register separately in the WESM.

Distribution Utilities: Must develop internal procedures for ESS connection; coordinate with SO; notify TNP for ESS ≥10 MW (Luzon) or ≥5 MW (Visayas/Mindanao); include ESS in Monthly Operation Reports.

DCCs: May own ESS for demand management, subject to ERC COC; must provide type, capacity, rate of charge/discharge, and purpose information to TNP, SO, and MO.

End-Users: May own ESS for demand management, subject to LGU electrical permit and DU operating requirements.

QTPs: May own/operate ESS in conjunction with RE-based facilities or as part of hybrid power systems to provide continuous service in off-grid areas (micro-grid or DER form).

TNP and Small Grid Owners: Prohibited from owning/operating ESS (§4.6.1); TNP must incorporate ESS sizing and siting recommendations in its annual Transmission Development Plan and consider ESS as an alternative to transmission congestion and upgrade solutions.

SO and SO-Small Grid: Prohibited from owning/operating ESS (§4.7.1); within 90 days of effectivity, must develop (with stakeholders) testing standards, procedures, and accreditation processes for ESS; optimize ESS for AS applications with preference for environment-friendly and indigenous sources.

Market Operator: Submit proposed WESM Rules and Market Manual changes to the Rules Change Committee; ensure WESM registration of mandated ESS; submit regular reports to DOE on registration status and market impact.

[DC2019-08-0012, §4, 2019]

WESM Registration Thresholds (Section 8)

Mandatory WESM registration for [DC2019-08-0012, §8, 2019]:

  • ESS connected to the Transmission System (any capacity)
  • ESS connected to Distribution System with capacity ≥10 MW (Luzon), ≥5 MW (Visayas), ≥5 MW (Mindanao)

Voluntary registration permitted below thresholds. ESS mandated to register is classified as a Generation Company in the WESM. All ESS integrated in a GenCo’s facilities require separate WESM registration.

Permitting Requirements (Section 6)

  • All ESS proponents must secure a COC as a Generation Company from the ERC
  • DUs entering PSAs with ESS proponents must observe CSP Policy (DC2018-02-0003 cited) and EPIRA §45 market share limits
  • ESS must comply with Safety, Health, Environmental Standards, and Proper Disposal rules
  • ESS proponents must secure an Environmental Compliance Certificate (ECC) from DENR

[DC2019-08-0012, §6, 2019]

Proper Disposal (Section 11)

ESS proponents must recycle and properly dispose of ESS facilities in compliance with DENR AO 2013-22 under RA 6969 (Toxic Substances and Hazardous and Nuclear Waste Control Act) [DC2019-08-0012, §11, 2019].

Supersession

Repealed by DC2023-04-0008 (20 April 2023). Key changes in the 2023 version: eight purposes (Transmission Congestion Relief removed as separate item); four COC configurations (stand-alone, integrated RE+ESS, integrated non-RE+ESS, generating plant+ESS) replacing a simpler COC framework; SO dispatch priority rule explicitly protecting private AS providers.

Full text: Cleaned copy