DC2020-02-0003 — National Smart Grid Policy Framework
Full title: Providing a National Smart Grid Policy Framework for the Philippine Electric Power Industry and Roadmap for Distribution Utilities Signed: February 6, 2020 | Effective: ~February 21, 2020 (15 days after publication) Secretary: Alfonso G. Cusi Pages: 17 (main text §§1–10) + Annex A (SDUR matrix) Legal basis: RA 9136 (EPIRA) §37; RA 11285 (EEC Act); RA 11234 (EVOSS Act) Predecessor circulars: DC2013-03-0003 (created SG-IASC); SO2018-10-0057 (created SG-TWGs)
Establishes the Philippines’ National Smart Grid Policy Framework and the Smart Distribution Utility Roadmap (SDUR) for all distribution utilities. The framework targets a fully smart, interoperable, and cyber-resilient grid by 2040.
Note on effective date: the source page’s frontmatter previously listed
effective-date: 2020-02-06, but that is the signing date — both the body text and the source-summary agree the circular took effect ~February 21, 2020 (15 days after publication). The frontmatter above has been corrected to the effectivity date.
Section Structure
| Section | Subject |
|---|---|
| §1 | 6 Guiding Principles: Safety, Reliability, Efficiency, Flexibility/Sustainability, Resiliency, Consumer Empowerment |
| §2 | 33 Definitions (ADMS, AMI, AMR, BEMS/HEMS, Cybersecurity, DR, DRMS, DSM, DER, DMS, DA, EMS, ESS, FLISR, GIS, Smart Grid, VPP, SCADA, WAMS, prosumer, etc.) |
| §3 | Scope — primarily DUs; linked to GenCos, TNP, customers, SO, MO, Market Governance |
| §4 | Smart Grid Vision by 2040 (8 outcomes) |
| §5 | Overall Framework: SPG, Transmission Modernization, SDU (SDUR + AMI rules + EV charging + pilot projects), Information Sharing, Communication, Interoperability, Cybersecurity |
| §6 | Duties: SG-IASC, GenCos, TNP, DUs, MO, SO |
| §7 | Regulatory and Government Support: DOE, ERC, NEA |
| §§8–10 | Repealing, Separability, Effectivity |
| Annex A | SDUR matrix — Level 0–4 for Networks and Customer Service, Vision column |
Smart Grid Vision 2040
Eight outcomes targeted by 2040 [DC2020-02-0003, §4, 2020-02-06]:
- Self-healing grids that automatically detect and restore faults
- Full retail competition and open access (RCOA) enabled for all customers
- Virtual Power Plant (VPP) integration across the grid
- Islanding capability for resilience during disruptions
- Demand response programs at scale
- Smart homes with building energy management systems (BEMS/HEMS)
- Advanced metering infrastructure (AMI) fully deployed at customer level
- Grid-scale energy storage systems integrated into operations
Smart Distribution Utility Roadmap (SDUR)
A 5-level maturity framework across two dimensions [DC2020-02-0003, §§5.3.1–5.3.2, Annex A, 2020-02-06]:
| Level | Networks | Customer Service |
|---|---|---|
| Level 0 | Manual operations, no automation | Conventional meters (AMR/mechanical) |
| Level 1 | Basic SCADA, partial automation | Basic AMI deployment |
| Level 2 | Distribution automation, DMS | Intermediate AMI, demand response programs |
| Level 3 | Advanced DMS/ADMS, DA | Full AMI, real-time customer data |
| Level 4 | Full SDA/SSA, self-healing | Full AMI, prosumer integration, VPP |
DUs must self-assess against the SDUR matrix, develop smart grid deployment plans, and submit to DOE with copy to ERC. Plans must be incorporated into Distribution Development Plans. Acceleration or deferral of milestones allowed with DOE endorsement and ERC approval.
Virtual Power Plant (VPP)
VPP is formally defined for the first time in Philippine regulation under this circular [DC2020-02-0003, §2.32, 2020-02-06]: a network of aggregated decentralized medium-scale units (CHP, wind, solar PV, flexible consumers/prosumers, ESS) dispatched through a central control room.
Cited in PDP 2023-2050 Ch. 3 as one of DOE’s power development goals.
Transmission Modernization
NGCP must formulate a Smart Grid deployment plan and roadmap as part of its annual TDP — including WAMS, transmission automation, and long-term interconnection expansion [DC2020-02-0003, §6.3.2, 2020-02-06]. This is the statutory basis for NGCP’s smart grid components in the TDP.
EV Charging Framework
Distribution utilities may establish or facilitate EV charging stations under prevailing (non-regulated) pricing [DC2020-02-0003, §5.3.7, 2020-02-06]. DOE through SG-IASC to formulate a National EV/EVCS Strategy and Roadmap consistent with PEP. This pre-EVIDA framework was largely superseded by RA 11697 (EVIDA, 2022) and the EVIDA implementation DCs (Digest: DC2023-05-0010 — EVCS Unbundling of Charging Fees , Digest: DC2023-05-0011 — EVCS Provider Accreditation and EVCS Registration , Digest: DC2023-05-0012 — EV Recognition Guidelines ).
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]. This is the DOE’s first explicit cybersecurity mandate for power sector participants, predating RA 12305 (Nuclear Safety Act, 2025) cybersecurity provisions.
ERC Mandates
Within 6 months of effectivity, ERC must [DC2020-02-0003, §7.2, 2020-02-06]:
- Promulgate SG implementation guidelines
- Review and amend Distribution Utility Planning Manuals
- Develop SG standards for the Philippine Distribution Code and Grid Code
- Review DU/TNP CAPEX/OPEX applications for SG investments
- Ensure timely approval of SG-related projects
Governance
- SG-IASC (Inter-Agency Steering Committee): DOE-led multi-agency body; established under DC2013-03-0003; coordinates SG policy across all sectors [DC2020-02-0003, §6.1, 2020-02-06]
- SG-TWGs (6 Technical Working Groups): established under SO2018-10-0057; handle technical standards, interoperability, cybersecurity, and sector-specific SG workstreams [DC2020-02-0003, §6.1, 2020-02-06]
Full text: Cleaned copy