Amid rising renewable energy (RE) penetration and growing concerns over grid reliability, the Philippine Sustainable and Strategic Energy Alliance (PSSEA) gathered stakeholders for its fourth Grid Forming Workshop, titled “Optimizing Levelized Cost of Storage (LCoS) and Power System Integration: Strategies for the Philippines’ Energy Future.”

The session brought together system experts, policymakers, and analysts to discuss the technical, regulatory, and investment frameworks needed to support the country’s transition toward a low-carbon power sector.

Robbie Chen, an international system expert, opened the workshop with a technical presentation on grid-forming technologies. He explained that as traditional synchronous generators—equipped with natural inertia and voltage support—are phased out in favor of inverter-based renewable energy, the grid faces heightened vulnerability to disturbances.

“Inverter-based systems lack the spinning momentum of conventional generators,” said Chen. “This absence of inertia compromises the grid’s ability to stabilize frequency during sudden power losses.”

Chen emphasized the role of grid-forming inverters and batteries, which mimic inertia and offer fast frequency response. Citing lessons from the United Kingdom’s 2019 blackout, which affected over 3 million people, he pointed out that lack of system inertia and delayed frequency recovery contributed to the collapse. In response, countries like the UK and Germany have instituted new grid codes requiring “virtual inertia” and have begun procuring these services through dedicated markets.

Notably, Chen highlighted that grid-forming batteries offer a multi-functional solution, capable of providing inertia, frequency stabilization, voltage support, and active power—making them more versatile than synchronous condensers.

The workshop also spotlighted the Green Energy Auction Program (GEAP), which has emerged as a cornerstone policy driving RE adoption and storage integration. Through multiple auction rounds between 2022 and 2024, the DOE awarded over 18 GW of clean energy capacity, signaling strong investor interest.

Recent auction terms now include integrated renewable energy and storage systems (I-RES), seen as crucial to stabilizing intermittent sources like solar and wind.

The GEAP aligns with national energy targets: increasing RE’s share in the power mix to 35% by 2030 and 50% by 2040. It is also designed to lower electricity prices through competitive bidding, stimulate green investment, and help meet the Philippines’ climate commitments.

“Energy storage is instrumental in reducing power outages and ensuring a steady supply,” the Department of Energy (DOE) emphasized, citing simulations projecting carbon emission reductions of over 300 million metric tons from GEAP projects by 2040.

To support the energy transition, the DOE highlighted ongoing reforms, including:

• Foreign ownership liberalization, allowing 100% foreign-owned firms to develop RE.
• Sustainable finance taxonomy guidelines, encouraging banks to fund climate-aligned projects.
• A Smart and Green Grid Plan (SGGP), developed in partnership with USAID, TransCo, and the University of the Philippines, aimed at enhancing grid flexibility.

The DOE estimates the transition will require up to Php31 trillion in investments and create 2 million green jobs, offering both environmental and economic dividends.

While challenges remain—including permitting bottlenecks, financing gaps, and transmission limitations—stakeholders agree that the integration of grid-forming technologies and robust energy storage is non-negotiable.

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