Energy experts warned that the Philippines could face grid congestion and stall renewable investments if battery energy storage systems (BESS) fail to scale alongside the country’s rapidly expanding solar capacity. They specifically drew parallels to Vietnam’s experience where renewable growth outpaced grid readiness.

The concerns were raised during a panel discussion at Energyear Philippines 2026, held on January 21–22 at the Westin Manila Hotel. The event marked the first time this international energy conference was hosted in the Philippines, bringing together developers, analysts, and policymakers to discuss grid stability and investment risks amid the country’s energy transition. 

Harit Puri, vice president for solar and wind project development at Enertrans Global, said Vietnam’s market suffered after large volumes of renewables were deployed within a short period. “There was so much of renewable deployment within a span of three to four years that the government could not catch up,” he said, adding that the market eventually became “unviable for any investors.”

The warning comes as the Philippines accelerates solar development under government auction programs. Philipp Egli, head of research for wider Asia at Aurora Energy Research, said the scale of new capacity presents a structural challenge for the grid. “With GEA awarding around seven gigawatts of solar… in a power market with a peak demand of 20 gigawatts nationwide, our models show that the grid can actually not take it,” he said.

Panelists stressed that battery storage is now an essential to manage excess solar generation, especially during midday when supply exceeds demand. Without storage, excess power may be wasted, reducing project viability and dampening investor confidence.

Speakers also pushed back against the perception that battery storage remains too expensive. Hanzel Cabangbang, chief development officer of Upgrade Energy Philippines, said battery prices have fallen sharply in recent years. “Three years ago, I was able to sell batteries as much as USD 1,000 per kilowatt hour,” he said. “Right now, we have received offers as low as USD 80 to USD 90 per kilowatt hour.”

Egli added that falling battery costs have been driven by technological improvements, economies of scale, and spillover innovation from the electric vehicle sector. This makes solar and battery systems increasingly complementary to each other as renewable deployment continues.

Despite improving economics, developers said policy and regulatory frameworks have fallen behind technological progress. Cabangbang noted that existing rules were designed around the limited battery applications of its time. “Our rules right now… were drafted when the application of the batteries were just for ancillary services and solar-based battery projects,” he clarified.

Uncertainty around system charges, wheeling fees, and revenue treatment for stand-alone battery projects has made investors cautious, panelists said. Puri argued that clearer market design is needed to unlock investment. “The most critical… would be multiple revenue streams,” he said. “The moment you open multiple revenue streams for the stand-alone BESS, it will open the floodgates for the installation of the projects.”

While policy challenges still remain, speakers pointed to operating projects that have already demonstrated the value of battery storage, pointing to its applications in off-grid and island areas. Cabangbang cited hybrid solar-battery-diesel systems that have reduced fuel use and costs. “They’re saving around eight million pesos every month,” he said, referring to these island installations.

Energy Regulatory Commission Director of Market Operations Service Sharon Montaner did comment that a regulatory framework for battery energy storage has already undergone public consultation. “The regulatory framework is already drafted,” she said, adding that based on the agency’s timeline, implementation is expected “within the year.”

Panelists concluded that while battery technology has drastically improved and is already delivering results in parts of the country, we still need to align policy, market design, and grid planning with the pace of these developments. It’s absolutely essential to maintaining system reliability.

As the Philippines pushes for more solar power, how quickly can grid planning and regulation adapt to ensure battery storage keeps pace with the country’s energy transition?

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