To accelerate the completion of critical transmission infrastructure and strengthen the reliability and affordability of electricity supply, the Department of Energy (DOE) has issued a Department Circular (DC) establishing a policy framework that empowers the National Transmission Corporation (TransCo) to plan, finance, and/or construct transmission lines and facilities identified as Priority Projects.
Under DC No. DC2026-02-0007, the DOE designates TransCo as the primary authority to undertake the planning, financing, and construction of all Priority Projects. Priority Projects is identified based on one or more of the following considerations: (a) the importance of the project to the Philippine Energy Plan and long-term energy security; (b) the necessity of the project to enable or reinforce generation, interconnection, and demand growth; and/or (c) the urgency of the project and existing delays despite prior interventions.
The DOE underscored that delays in installing and completing transmission facilities can hinder the alignment of generation and grid development programs, constrain the timely entry of new capacity, and weaken investor confidence. Such delays ultimately affect the reliability, adequacy, affordability, and security of the country’s power supply. Expediting transmission projects is therefore necessary to sustain progress in generation expansion, grid modernization, energy efficiency initiatives, and the integration of emerging and alternative technologies.
To ensure delivery, TransCo may engage one or more government agencies, government-owned and -controlled corporations (GOCCs), or qualified private entities to implement Priority Projects on their behalf. Implementation may be pursued through competitive bidding, unsolicited proposals (subject to Swiss Challenge), or partnership arrangements with government agencies, GOCCs, financial institutions, or qualified private entities.
TransCo shall supervise project implementation and submit quarterly reports to the DOE to ensure transparency, accountability, and close oversight. The policy framework likewise sets clear obligations for the Transmission Network Provider (TNP) to ensure that Priority Projects proceed without obstruction and are integrated into existing systems efficiently. In particular, the TNP is mandated to:
- Fully cooperate with the DOE and TransCo by providing necessary data, access, and technical support for Priority Projects;
- Refrain from any action or inaction that may delay implementation, including failure to assist in right-of-way acquisition using its franchise authority;
- Ensure timely completion of its own transmission projects;
- Facilitate testing, commissioning, and energization of Priority Projects;
- Provide necessary space and integration support within existing facilities; and
- Perform all acts necessary to expedite project implementation and completion.
annually publish and regularly update the list of Priority Projects, including their scope and implementation status. The DOE emphasized that this rolling publication is intended to improve visibility on grid development priorities, reinforce alignment between generation build-out and transmission readiness, and reduce uncertainty that can delay investment decisions.
In addition, the Energy Regulatory Commission (ERC) is mandated to issue the necessary regulatory framework relating to the implementation of Priority Projects, ensuring that the policy’s execution is supported by clear and predictable regulatory processes.
The DOE reaffirmed that accelerating critical transmission infrastructure is indispensable to delivering a more resilient and modernized grid, one that can absorb new and cleaner generation, enable interconnections that strengthen system flexibility, and keep electricity supply reliable and competitive for Filipino consumers.
“Transmission readiness is a prerequisite for meaningful progress in the energy transition,” Energy Secretary Sharon S. Garin said. “By establishing a clear framework for Priority Projects, anchored on accountability, transparency, and stronger coordination, this policy is expected to enable the timely delivery of grid facilities needed to integrate new capacity, reinforce reliability, and sustain investor confidence in the Philippine power sector.”
