Philippines Energy Storage Market

The Philippine Government continues to state its goal to be energy self sufficient as mounting energy challenges loom. The Department of Energy (DOE) is looking into utilizing renewable energy, and modernizing and deploying an efficient grid system. The Government has started modernizing its main grids in an effort to better transmit and distribute energy. As part of such efforts, the DOE recognized the need to utilize energy storage systems (ESS).

The DOE highlighted a number of potential applications for storage, including grid-connected front-of-meter benefits such as ancillary services and transmission/distribution investment deferral, transmission congestion relief, behind-the-meter integration of renewable energy sources, and separate application category for microgrids. The circular also highlighted licensing and permitting, frameworks for market participation and registration, and connection and operational requirements. 
 
The DOE identified the following ESS technologies that have the potential to support the energy market: battery energy storage system (BESS), compressed air energy storage (CAES), flywheel energy storage (FES), and pumped-storage hydropower (PSH). The DOE also advised that energy storage systems should operate within the framework of generation companies whose facilities supply electricity to the grid or the power distribution system. The power grid is the high-voltage backbone system of interconnected transmission lines, substations and related facilities in Luzon, Visayas and Mindanao. The system operator, the National Grid Corporation of the Philippines, will provide central dispatch to grid-connected and embedded energy storage systems with material impact to the grid.
 
U.S. energy storage suppliers can sell to generation companies, distribution utilities, large businesses/commercial and industrial facilities, and qualified third parties. While U.S. firms often cannot compete in terms of price, Philippine customers are open to diversification, and will seek to have some portion of their technologies/solutions from the United States. U.S. companies interested in selling ESS solutions will need to compete in RFP processes dictated by the private sector buyers. 
 
For more information contact Commercial Specialist Thess Sula: (Thess.Sula@trade.gov).