The Department of Energy (DOE) has issued a new policy empowering the National Transmission Corporation (TransCo) to plan, finance, and build high-priority transmission projects aimed at strengthening power reliability and supporting the country’s energy transition.

Under Department Circular No. DC2026-02-0007 released today, TransCo is designated as the primary authority for all “Priority Projects,” which are identified based on their importance to the Philippine Energy Plan, their role in enabling generation and grid expansion, or the urgency of existing delays.

Previously, TransCo owned the transmission assets but did not directly implement most major projects, as day-to-day operations and construction were handled by the National Grid Corporation of the Philippines under its concession. The new circular gives TransCo clearer authority to plan, finance, and lead designated “Priority Projects” while requiring cooperation from other transmission operators, aiming to reduce delays and accelerate grid readiness.

“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,” the DOE said. Accelerating these projects, it added, is crucial for maintaining reliability, affordability, and security of the country’s electricity supply.

To implement projects, DOE said TransCo may collaborate with government agencies, state-owned corporations, or qualified private entities through competitive bidding, unsolicited proposals subject to Swiss Challenge, or other partnership arrangements. TransCo will supervise execution and submit quarterly reports to the DOE to ensure transparency and accountability.

The circular also sets clear obligations for the Transmission Network Provider (TNP) to fully cooperate with DOE and TransCo, assist with right-of-way acquisition, facilitate testing and commissioning, and integrate new projects into the existing grid without obstruction.

“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.”

DOE will annually publish and update the list of Priority Projects to guide investor planning and ensure alignment between generation build-out and transmission readiness. The Energy Regulatory Commission will issue the necessary regulatory framework to support these projects with clear and predictable processes.

How will this new framework impact future investment, project timelines, and the overall reliability of the grid? Join the discussion.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.