As renewable energy capacity continues to expand in the Philippines, a new challenge is coming into focus–power can be generated, but not always delivered where it is needed. For Citicore Renewable Energy Corporation (CREC), the answer may not lie in building bigger plants, but in rethinking the system itself. This means shifting toward localized solar and battery solutions that reduce reliance on an increasingly strained transmission grid.

Speaking on the latest episode of Power Podcast, CREC President Oliver Tan said addressing grid congestion will require more than just adding capacity- it will require a new approach to how electricity is produced and distributed.

When generation outpaces delivery

The Philippines is seeing growing interest in renewable energy development with more players capable of building generation facilities across the country. But as supply increases, the ability to deliver that power is becoming a critical constraint.

CREC recently made headlines after switching on its 197-megawatt peak Citicore Solar Batangas 1 facility, paired with a 320-megawatt-hour battery energy storage system — a project positioned as the Philippines’ first baseload-capable solar plant.

“At the end of the day… There are many generation companies that can put up generation power plant. Hindi naman ma-deliver,” Tan said.

This mismatch between generation and transmission is particularly pronounced in Luzon, which accounts for the bulk of electricity demand but cannot always host new power plants in the same areas where consumption is highest.

Transmission as the real bottleneck

Even as generation capacity expands, transmission infrastructure has struggled to keep pace. Without sufficient grid capacity, electricity cannot be transported efficiently from where it is produced to where it is needed.

“So at the end of the day you really rely on the grid,” Tan said. “Some policies we really need to revisit to encourage faster, more efficient rolling out of the upgrade of the transmission backbone.”

While private developers are willing to support transmission development, Tan noted that clearer policies are needed to define how the private sector can participate in expanding the grid.

Rather than relying solely on large, centralized plants, CREC is advocating for a decentralized model. In this framework, power plants are put closer to the area of demand.

“We have the flexibility to build ourselves close to where the demand is. Can be per region, per province,” Tan said.

This approach reduces dependence on long-distance transmission, allowing electricity to be generated and consumed within the same locality. In doing so, it offers a way to bypass some of the structural constraints of the national grid.

Why solar enables decentralization

Among renewable technologies, solar stands out as the most adaptable for decentralized deployment.

“You cannot put geothermal… you rely on where there’s steam. Hydro… you cannot put a hydro plant for each province,” Tan said. “Only solar… you can feasibly put every province with their own solar.”

Unlike other energy sources that depend on specific geographic conditions or large-scale infrastructure, solar systems can be deployed across a wide range of locations, making them well-suited for distributed energy models.

Storage as the key enabler

Battery storage plays a critical role in making decentralized solar systems viable. By storing excess energy generated during peak hours, batteries allow electricity to be used when and where it is needed.

“The battery is a very critical factor to address the curtailment,” Tan said.

This capability helps address one of the key issues in renewable energy systems — the mismatch between when electricity is generated and when it is consumed.

Solving congestion and curtailment

Grid congestion is often most visible during peak solar generation periods, when too much electricity is produced at once and transmission capacity is limited.

“Minsan… congested ka sa umaga. Pero sa gabi, libre yung line,” Tan said.

By storing excess energy during the day and dispatching it at night, battery systems allow developers to better utilize available transmission capacity, reducing curtailment and improving overall system efficiency.

Designed for an archipelagic system

The Philippines’ geography adds another layer of complexity to power delivery. With islands spread across the archipelago, building extensive interconnections can be both costly and technically challenging.

Decentralized energy systems offer a way to adapt to this reality — enabling provinces or municipalities to develop their own localized power sources rather than relying entirely on centralized generation.

This approach not only improves energy access but also enhances resilience, particularly in areas with limited grid connectivity.

Reducing reliance, not replacing the grid

While decentralization offers clear advantages, Tan says it isn’t necessarily a replacement for the transmission network, but a complementary approach that reduces pressure on the grid.

By distributing generation more evenly across regions, the system can become more flexible and less vulnerable to congestion, while still benefiting from centralized infrastructure where needed.

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