Bigger plants aimed at cheaper power eyed

Consumers could benefit from lower electricity costs in the long term as regulators allow the construction of larger power plants to boost supply, attract investments and strengthen competition among electricity generators.

The Energy Regulatory Commission (ERC) said Wednesday it removed capacity restrictions on new generating units to pave the way for bigger power projects that could help meet rising electricity demand and bring more competitively priced power into the market.

Under Resolution No. 34, Series of 2026, the ERC lifted the previous limits of 600 megawatts (MW) per generating unit in Luzon and 150 MW in the Visayas and Mindanao.

Gives developers more flexibility

The move gives developers flexibility to build larger generating units based on market demand, available technology, and the capacity of the transmission grid.

“By removing outdated capacity restrictions, we are opening opportunities for greater investments and additional power supply. More generation capacity can strengthen competition, improve energy security, and help achieve more competitive electricity prices for Filipino consumers,” ERC chairperson and CEO Francis Saturnino C. Juan said.

The ERC expects the policy to encourage more investments in electricity generation, potentially increasing available supply and easing price pressures as demand continues to grow.

More options for distribution utilities

Additional generating capacity could also give distribution utilities more options when securing electricity supply contracts, allowing them to source power from a wider pool of suppliers.

For households and businesses, stronger competition among power generators could help moderate electricity rates over time, while adequate supply could reduce the risk of shortages and power interruptions.