Republic of the Philippines


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The Energy Regulatory Commission (ERC) issued the first draft of the “Licensing Rules for Distributed Energy Resources (DER) and Microgrid Systems” (DER Licensing Rules for brevity) as Addendum to the 2014 COC Revised Rules for the Issuance of Certificate of Compliance (COCs) for Generation Companies, Qualified End-users and Entities with Self-Generation Facilities on 07 June 2017. The said DER Licensing Rules is posted and downloadable from the ERC’s website ( and seeks comments from electric power industry participants and stakeholders until 04 July 2017 prior to its Public Consultation on 17 July 2017 at the ERC Main Office in Pasig City.  

“We saw the need to develop the DER Licensing Rules in view of the emergence of variable renewable energy resources and facilitate the entry of distributed energy resources into the transmission and distribution systems.  Thus, it is necessary to create an additional category of license that will cover Distributed Generation Companies (DGCs) or those that will provide DER to be referred to as COC-DER”, Officer-In-Charge Alfredo J. Non explained.  

Distributed Energy Resources (DERs) are smaller power sources that could be aggregated to provide power necessary to meet regular demand.  DERs also pertain to demand- and supply-side resources that can be deployed throughout the system of an electric utility to meet the energy and reliability needs of the customers served by the system, including, but not limited to renewable energy facilities, managed loads (including electric vehicle charging), energy storage, and other measures necessary to incorporate renewable generation resources, including load management and ancillary services.

The proposed DER Licensing Rules shall cover generation companies that own or operate any of the following:  (1) A DER that is installed in the premises of, and directly connected to the load side of an end-user with no interconnection to the transmission or distribution system; (2) A DER that is installed in the premises of, and directly connected to the load side of an end-user with an existing interconnection to the transmission or distribution system; and (3) A Microgrid system or a localized grouping of distributed energy sources, loads and storage mechanism which can operate both as part of the central grid or independently as an island.


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