The Department of Energy (DOE) has rolled out a new policy requiring power producers and utilities to align investments and procurement with system needs to secure grid reliability while advancing the energy transition.

Under the Department Circular DC2026-02-0005 dated 23 February, the DOE introduced a load-based framework categorizing generation technologies into baseload, mid-merit, and peaking, assigning indicative technologies to each to ensure adequacy, reliability, and flexibility across the grid.

The framework is designed to balance the country’s generation mix, strengthen power system reliability, and provide a clear signal for investment.

It recognizes that a reliable system requires resources that can supply electricity continuously, adjust output with changing demand, respond rapidly during peak periods, and provide ancillary services to maintain grid stability. 

“Reliability is non-negotiable, even as we accelerate the energy transition,” Energy Secretary Sharon S. Garin said on Monday.

“This policy provides a systematic approach for matching the right technologies to the right system needs—baseload, mid-merit, and peaking, so that electricity remains secure and affordable while we increase renewable energy integration and reduce dependence on imported fuels,” she added.

Under the circular, baseload power—needed constantly—will come from firm renewables, nuclear, emerging technologies, coal co-firing, and conventional coal. 

Mid-merit will cover variable demand with flexible sources like hybrid renewables, gas-fired plants, hydro, and energy storage, while peaking will rely on fast-start technologies for short, high-demand spikes. 

The DOE said distribution utilities must factor these categories into their procurement plans, and generation companies must align projects with them. 

The agency said formalizing this system will further steer investment toward flexible, fast-responding technologies while keeping baseload secure, ensuring the grid remains reliable as renewable energy expands.