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DOE Authorizes TransCo to Fast-Track Priority Transmission Projects

Manila: The Department of Energy (DOE) has designated the National Transmission Corporation (TransCo) to lead the planning, financing, and construction of priority transmission projects.

According to Philippines News Agency, a recent news release from the DOE announced Department Circular No. DC2026-02-0007, authorizing TransCo to ensure timely implementation and prevent delays in the installation and completion of these key projects. Priority projects are defined as those aligned with the Philippine Energy Plan and long-term energy security, those that support generation, interconnection, and demand growth, or those delayed by interventions.

The DOE highlighted the potential consequences of delays in transmission facilities, stating that such setbacks "can hinder the alignment of generation and grid development programs, constrain the timely entry of new capacity, and weaken investor confidence." To address these challenges, the DOE has empowered TransCo to collaborate with government agencies, government-owned and -controlled corporations (GOCCs), or qualified private entities to implement priority projects. This can be achieved through competitive bidding, unsolicited proposals subject to a Swiss Challenge, or partnership arrangements.

Furthermore, the Energy Regulatory Commission (ERC) is tasked with issuing the regulatory framework to ensure clear and predictable processes for these projects. Energy Secretary Sharon Garin emphasized the importance of transmission readiness for progress in the energy transition. She remarked, "By establishing a clear framework for priority projects, anchored on accountability, transparency, and stronger coordination, this policy is expected to enable the timely delivery of grid facilities needed to integrate new capacity, reinforce reliability, and sustain investor confidence in the Philippine power sector."