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Pricing being determined for vehicle-to-grid power supply scheme

THE Energy Regulatory Commission (ERC) said it is preparing regulations that will govern electric vehicles (EVs) whose owners would like to offer their excess energy to the grid. Sharon O. Montañer, ERC director of the Market Operations Service, said the regulator is hoping to issue an EV framework this year which will include vehicle-to-grid (V2G) […]

Context & Analysis

Vehicle-to-grid technology shifts electric vehicles from passive consumers to active participants in the power market. The Energy Regulatory Commission’s work on pricing mechanisms marks a structural pivot in how the Philippines manages distributed energy resources. Rather than treating EVs as another load on an already strained grid, regulators are preparing to compensate owners for feeding stored electricity back during peak demand or system stress. This approach mirrors global energy transitions where bidirectional charging transforms transportation assets into grid-balancing tools.

For Philippine businesses, the implications extend beyond fleet electrification. Logistics companies, ride-hailing operators, and commercial transport fleets could monetize idle battery capacity during off-peak hours, turning charging infrastructure into a revenue-generating asset. Power distributors and independent power producers will need to adjust forecasting models as vehicle batteries absorb excess generation and discharge when demand spikes. The pricing framework will also determine whether V2G competes with or complements existing retail electricity competition rules, shaping how distributed energy resources are valued alongside traditional generation assets.

Consumers should expect a gradual rollout tied to technical standards for bidirectional chargers and updated billing systems. The real test will be whether the proposed tariffs provide enough incentive to offset battery degradation while keeping electricity costs predictable. Grid operators and the Department of Energy will need to coordinate on interconnection requirements to ensure vehicle discharges do not destabilize local distribution networks.

What to monitor next is how the ERC aligns V2G compensation with existing market rules, whether major power firms or fleet operators announce pilot programs, and how the framework interacts with ongoing retail competition reforms. Clear pricing signals will determine whether vehicle-to-grid remains a niche experiment or becomes a foundational element of Philippine energy resilience. Businesses that track these developments now will be better positioned to integrate smart charging into asset planning and risk management strategies as the power market evolves.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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