Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 865 
Introduced by 
APEC Party-List Representative Sergio C. Dagooc 
EXPLANATORY NOTE 
As the share of variable renewable energy sources such as solar and 
wind continues to grow, it is imperative to ensure the stability and flexibility 
of the power system. Energy Storage Systems (ESS) offer a practical solution 
to address the challenges of intermittency, grid reliability, and balancing 
supply and demand. 
At present, the country lacks a clear policy and regulatory framework 
for the development, integration, and operation of ESS. There is also no 
unified guidance on how ESS should be planned alongside other energy 
infrastructure. To unlock the full potential of ESS technologies, there is an 
urgent need to put in place an enabling legal framework that will foster their 
adoption. 
This proposed measure seeks to integrate ESS into the country’s energy 
and power development plans, define the roles of key government agencies in 
promoting 
and 
regulating 
ESS, 
provide 
general 
incentives 
for 
the 
development, utilization, and commercialization of ESS in both grid and off-
grid areas, and streamline the licensing and permitting processes for ESS, 
consistent with the Energy Virtual One-Stop Shop (EVOSS) Act. 
This bill was filed and deliberated upon in the 19th Congress and was 
approved by the House of Representatives on Third Reading. This 
representation is re-filing this measure to continue the push for a clear and 
July 1, 2025
2:30 pm


framework that will accelerate the development and integration of ESS in the 
country. 
In view of the foregoing, the immediate passage of this measure is 
earnestly sought. 
REP. SERGIO C. DAGOOC 
APEC Party-List 


Republic of the Philippines 
House of Representatives 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 865 
Introduced by 
APEC Party-List Representative Sergio C. Dagooc 
AN ACT  
ESTABLISHING A NATIONAL POLICY FRAMEWORK FOR THE 
DEVELOPMENT, UTILIZATION, AND COMMERCIALIZATION OF 
ENERGY STORAGE SYSTEMS 
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled: 
CHAPTER I 
1 
GENERAL PROVISIONS 
2 
SECTION 1. Short Title. – This Act shall be known as the “Energy 
3 
Storage Systems Act”. 
4 
SEC. 2. Declaration of Policies. – It is hereby declared the policy of the 
5 
State to adopt a comprehensive energy policy to include a framework of 
6 
energy storage technology which shall: 
7 
(a) Improve the reliability and flexibility of the Grid to accommodate the
8 
growing demand for sustainable renewable energy back up or
9 
ancillary sources of electricity such as, solar and wind, as part of the
10 
country’s just transition plans;
11 


 
 
(b) Establish the necessary fiscal or and non-fiscal mechanisms to 
1 
encourage the development, utilization, and commercialization of 
2 
energy storage systems in both Grid and off-Grid areas in the 
3 
country; and 
4 
(c) Help secure additional sources of power supply that shall meet the 
5 
country’s growing demand. 
6 
 
SEC. 3. Definition of Terms. – As used in this Act: 
7 
 
(a) Ancillary Services refers to the services necessary to support the 
8 
transmission of capacity and energy from sources to load while 
9 
maintaining reliable operation of the transmission and distribution 
10 
system in accordance with good industry practice, the Grid Code, 
11 
and the Distribution Code; 
12 
(b) Department of Energy (DOE) refers to the agency created pursuant to 
13 
Republic Act (RA) No. 7638, otherwise known as the “Department of 
14 
Energy Act of 1992”, which functions are expanded under RA 9136, 
15 
otherwise known as the “Electric Power Industry Reform Act of 2001”; 
16 
RA 9513, otherwise known as the “Renewable Energy Act of 2008”; 
17 
and as further expanded under this Act; 
18 
(c) Department of Environment and Natural Resources (DENR) refers to the 
19 
agency created under Executive Order (EO) No. 130, otherwise known 
20 
as “Reorganizing the Ministry of Natural Resources and Renaming it as 
21 
the Department of Environment, Energy and Natural Resources”, as 
22 
amended by EO No. 192, otherwise known as the "Reorganization Act 
23 
of the Department of Environment and Natural Resources”, dated June 
24 
10, 1987; 
25 
(d) Department of Trade and Industry - Bureau of Philippine Standards 
26 
(DTI-BPS) refers to the agency created pursuant to RA 4109, whose 
27 
functions are reiterated under RA 7394, or the “Consumer Act of the 
28 
Philippines” and further expanded under this Act;  
29 


 
 
(e) Distribution Utility (DU) refers to any electric cooperative, private 
1 
corporation, government-owned utility, or existing local government 
2 
unit, which has an exclusive franchise to operate a distribution 
3 
system as defined in RA No. 9136; 
4 
(f)  Energy Regulatory Commission (ERC) refers to the independent 
5 
quasi-judicial regulatory agency created under Section 38 of RA 
6 
9136; 
7 
(g) Energy Storage Systems (ESS) refers to a facility capable of absorbing 
8 
energy directly from the Grid or distribution system, or from a 
9 
Renewable Energy (RE) or Non-RE Conventional plant connected to 
10 
the Grid or distribution system and storing it for a period of time, and 
11 
injecting the stored energy when prompted, necessary to ensure 
12 
reliability and balanced power system in accordance with good 
13 
industry practice; 
14 
(h) Grid refers to the high voltage backbone system of interconnected 
15 
transmission lines, substations, and related facilities, located in 
16 
Luzon, Visayas, and Mindanao, or as may be determined by the ERC 
17 
in accordance with Section 45 of RA 9136; 
18 
(i)   Integrated RE Plant and ESS refers to those solely charged by the RE 
19 
Plant/s; 
20 
(j)   Integrated Non-RE Plant and ESS refers to those solely charged by 
21 
the Conventional Plant/s; 
22 
(k) Integrated Hybrid Non-RE and RE Plant and ESS refer to a 
23 
combination of Conventional and Renewable Energy Plant/s where 
24 
the ESS is charged by both technologies;  
25 
(l) Market Operator (MO) refers to the entity responsible for the operation 
26 
of the Wholesale Electricity Spot Market (WESM) in accordance with 
27 
the WESM Rules; 
28 
(m)   Microgrid Service Provider (MGSP) refers to a natural or juridical 
29 
person whose business includes the installation, operation, and 
30 
maintenance of microgrid systems in unserved or underserved areas 
31 


 
 
nationwide;  
1 
(n) Microgrid System refers to a group of interconnected loads and a 
2 
generation facility or Decentralized Power Generator with clearly 
3 
defined electrical boundaries that acts as an integrated power 
4 
generation and distribution system, whether or not connected to a 
5 
distribution or transmission system; 
6 
(o) National Power Corporation Small Power Utilities Group (NPC SPUG) 
7 
refers to the unit of NPC mandated to perform missionary 
8 
electrification pursuant to Section 70 of RA 9136; 
9 
(p) Off-grid Systems refer to electrical systems not connected to the 
10 
wires and related facilities of the on-grid systems of the Philippines; 
11 
(q) On-grid 
Systems 
refer 
to 
electrical 
systems 
composed 
of 
12 
interconnected transmission lines, distribution lines, substations, 
13 
and related facilities for the purpose of conveyance of bulk power on 
14 
the Grid of the Philippines;  
15 
(r) Philippine 
National 
Standard 
(PNS) 
refers 
to 
the 
standards 
16 
promulgated by the DTI-BPS pertaining to product specifications, test 
17 
methods, terminologies, procedures, or practices pursuant to 
18 
Republic Act No. 4109, otherwise known as “Standards Law”, and 
19 
other applicable laws, rules and regulations;  
20 
(s) Standard refers to a document approved by a recognized body, that 
21 
provides, for common and repeated use, rules, guidelines or 
22 
characteristics for products or related processes and production 
23 
methods, with which compliance is not mandatory. It may also 
24 
include or deal exclusively with terminology, symbols, packaging, 
25 
marking or labelling requirements as they apply to a product, process 
26 
or production method;  
27 
(t) System Operator (SO) refers to the party responsible for generation 
28 
dispatch, the provision of ancillary services, and operation and 
29 
control to ensure safety, power quality, stability, reliability, and the 
30 
security of the Grid; and  
31 


 
 
(u) Technical regulation refers to a document which lays down product 
1 
characteristics or their related processes and production methods, 
2 
including the applicable administrative provisions, with which 
3 
compliance is mandatory. It may also include or deal exclusively with 
4 
terminology, symbols, packaging, marking or labelling requirements 
5 
as they apply to a product, process or production method.  
6 
 
SEC. 4. Scope. – This Act shall establish a framework for the 
7 
development, utilization, and commercialization of energy storage systems 
8 
to provide uninterrupted supply of sustainable energy to both Grid and off-
9 
Grid areas in the country. The provisions of this Act shall be applicable to a 
10 
new and existing energy storage technologies as determined by the DOE.  
11 
 
SEC. 5. Classification of ESS. – ESS technologies shall be classified 
12 
based on their primary purpose, subject to the rules and regulations and to 
13 
be issued by the DOE in accordance with relevant laws. 
14 
 
CHAPTER II 
15 
POWERS AND RESPONSIBILITIES OF GOVERNMENT AGENCIES 
16 
 
SEC. 6. Powers and Responsibilities of the Department of Energy. – 
17 
The DOE shall, in addition to its powers and functions under existing laws, 
18 
be the lead agency for the implementation and enforcement of this Act. To 
19 
this end, the DOE shall perform the following powers and functions: 
20 
(a) Evaluate applications and issue permits for ESS facilities pursuant 
21 
to RA 9136, RA 9513, RA 11646, otherwise known as the “Microgrid 
22 
Systems Act”, and other relevant laws, rules, and regulations; 
23 
(b) Include an ESS framework in the Philippine Energy Plan and Power 
24 
Development Plan; 
25 
(c) Include 
an 
ESS 
strategy 
in 
the 
Missionary 
Electrification 
26 
Development Plan;  
27 


 
 
(d) Review and approve, in coordination with the MO, relevant market 
1 
rules for the classification, registration, and offer submission of ESS 
2 
in WESM; 
3 
(e) Promote research and development of ESS technologies, in 
4 
coordination with the Department of Science and Technology 
5 
(DOST), DENR, state universities and colleges in integrating climate-
6 
change mitigation strategies in developing sustainable energy 
7 
storage systems, through appropriation of funds pursuant to 
8 
relevant laws;  
9 
(f) 
  Mandate NPC-SPUG, as the lead agency for the implementation of 
10 
missionary electrification, to oversee the development and operation 
11 
of ESS in off-Grid areas, pursuant to the relevant rules and 
12 
regulations issued by the DOE and other related government 
13 
agencies. For microgrid systems operated in unserved and 
14 
underserved areas, utilization and deployment of ESS shall be 
15 
implemented pursuant to the provisions of RA 11646, and other 
16 
existing laws; 
17 
(g) Issue the necessary regulations to mandate the adoption of technical 
18 
standards as promulgated by the DTI-BPS under Section 9 of this 
19 
Act; 
20 
(h) Ensure that in carrying out its powers and responsibilities, it shall 
not cause necessary delay in the implementation of this Act, and  
(i) Perform all other acts as may be necessary and incidental to 
21 
accomplish the objectives of this Act. 
22 
 
SEC. 7. Powers and Responsibilities of the Energy Regulatory 
23 
Commission. – In addition to its regulatory functions under existing laws, 
24 
the ERC shall: 
25 
 
(a) Issue the appropriate regulatory framework for the licensing, 
26 
operating standards, and cost recovery mechanism and pricing 
27 


 
 
structure for ESS; 
1 
(b) Determine the pricing mechanism for when an ESS developer acts 
2 
as a customer and when it acts as a supplier of a distribution unit; 
3 
(c) In coordination with the SO, DU, or MGSP, and other relevant 
4 
stakeholders, review and approve appropriate and applicable testing 
5 
standards and procedures, accreditation process, other necessary 
6 
guidelines for ESS as a storage to spur new other sector besides 
7 
Generation, Transmission, Distribution and Supply sectors;  
8 
(d) Ensure that in the determination of the recoverable cost of the ESS 
9 
developers, the utilization of the land wherein the ESS are 
10 
developed shall not form part of the recoverable cost, unless the 
11 
lands utilized are leased and not owned;  
12 
(e) Ensure that in carrying out its powers and responsibilities, it shall 
13 
not cause necessary delay in the implementation of this Act; and 
14 
(f) 
  Perform all other acts as may be necessary and incidental to 
15 
accomplish the objectives of this Act. 
16 
 
SEC. 8. Powers and Responsibilities of the Department of 
17 
Environment and Natural Resources. – In addition to its functions under 
18 
existing laws, the DENR shall determine and monitor the compliance of ESS 
19 
owners and operators with environmental standards for the location, 
20 
construction, operation, maintenance and decommissioning of ESS, as well as 
21 
the recycling, disposal, and handling of wastes involving ESS and related 
22 
equipment, parts, and other components in accordance with existing 
23 
environmental laws. 
24 
 
SEC. 9. Powers and Responsibilities of the Department of Trade 
25 
and Industry - Bureau of Philippine Standards (DTI-BPS). – In addition 
26 
to its functions under existing laws, the DTI-BPS shall: 
27 
(a) Pursuant to its mandate and functions under RA 4109, the DTI-BPS, 
28 
as the National Standards Body, shall promulgate PNS, consistent 
29 


 
 
with Good Standardization Practice, for ESS and related products and 
1 
system, in coordination with the DOE; and 
2 
(b) Issue technical standards and regulations, consistent with the 
3 
principles and mechanisms of Good Regulatory Practice, concerning 
4 
the certification and testing of battery components as a whole, 
5 
including its structure if necessary, and all products related to ESS 
6 
that will fall under its purview, in coordination with the DOE.  
7 
 
SEC. 10. Powers and Responsibilities of the Department of Trade 
8 
and 
Industry-Board 
of 
Investments 
(DTI-BOI) 
and 
Philippine 
9 
Economic Zone Authority (PEZA). - The DTI-BOI and PEZA shall 
10 
incentivize Research & Development (R&D) activities on energy storage 
11 
facilities and, in partnership with the DOST, create a five- or ten-year 
12 
program for the development, testing, and production of Philippine-made 
13 
energy storage facilities: Provided, That pending the creation of such 
14 
program, the DOST shall undertake the research and development for the 
15 
processing of nickel, cobalt, and such other elements or minerals 
16 
necessary for, or integral to, energy storage facilities. 
17 
 
CHAPTER III 
18 
GENERAL INCENTIVES 
19 
 
SEC. 11. Application of Incentives for Integrated RE Plant and ESS. 
20 
– Energy stored and dispatched from Integrated RE Plant and ESS shall be 
21 
considered renewable energy and shall be eligible of the following 
22 
incentives: 
23 
 
(a) The ESS developer may avail of the incentives under Chapter VII of 
24 
RA 9513 for its Integrated RE Plant and ESS; 
25 
(b) With regard to the Integrated RE Plants and ESS that use a 
26 
combination of Conventional Plant/s and an ESS, the incentives 
27 
shall be granted in proportion to and to the extent of the RE 
28 


 
 
component utilized; and 
1 
(c) The Integrated RE Plant and ESS, as applicable, shall have 
2 
preferential dispatch, but it can choose to be registered as a 
3 
scheduled generating unit. 
4 
 
CHAPTER IV 
5 
LICENSING AND PERMITTING 
6 
 
SEC. 12. Permits and Licenses. – The issuance of permits and licenses 
7 
for all types of ESS facilities shall be governed by RA 11234, otherwise 
8 
known as the “Energy Virtual One-Stop Shop Act” and RA 11032, otherwise 
9 
known as the “Ease of Doing Business and Efficient Government Service 
10 
Delivery Act of 2018”; and the issuance of licenses, registration and 
11 
clearances relative to the manner of recycling and disposal of ESS wastes 
12 
shall be governed by RA 6969, otherwise known as the “Toxic Substances 
13 
and Hazardous and Nuclear Wastes Control Act of 1990.”  
14 
 
CHAPTER V 
15 
FINAL PROVISIONS 
16 
 
SEC. 13. Fines and Penalties. - Any person, both natural and juridical, 
17 
involved in the operation and business of ESS, and is found, after due notice 
18 
and hearing, to have violated any provisions of this Act, shall be liable under 
19 
RA 9136, as amended. The ERC is likewise empowered to impose appropriate 
20 
administrative fines and penalties for any violations of the provisions of this 
21 
Act, its implementing rules and regulations and other pertinent issuance.  
22 
 
SEC. 14. Congressional Oversight. – The Joint Congressional Energy 
23 
Commission (JCEC), created pursuant to RA 9136, and as amended under 
24 
RA 11285, otherwise known as the “Energy Efficiency and Conservation 
25 
Act”, shall exercise oversight powers over the implementation of this Act. 
26 
The DOE and ERC shall submit to the JCEC annual reports, which shall 
27 


 
 
include the implementation review and reports, and policy and regulatory 
1 
issues no later than 15 March of every year.  
2 
 
SEC. 15. Implementing Rules and Regulations. – Within sixty (60) 
3 
days from the effectivity of this Act, the DOE shall, in coordination with 
4 
concerned government agencies, promulgate and issue the rules and 
5 
regulations to effectively implement the provisions of this Act. 
6 
 
SEC. 16. Separability Clause. – If for any reason, any part or provision 
7 
of this Act is declared unconstitutional or invalid, the other parts or 
8 
provisions hereof, which are not affected thereby, shall continue to be in 
9 
full force and effect. 
10 
 
SEC. 17. Repealing Clause. – All laws, presidential decrees, executive 
11 
orders, letters of instruction, administrative rules and regulations or parts 
12 
thereof, which are contrary to or inconsistent with the provisions of this 
13 
Act, are hereby repealed or modified accordingly. 
14 
 
SEC. 18. Effectivity. – This Act shall take effect fifteen (15) days after 
15 
its publication in the Official Gazette or in a newspaper of general 
16 
circulation. 
17 
 
Approved, 
18