ERC mulls approving NGCP’s P93.7-B projects

The Energy Regulatory Commission (ERC) is reviewing the National Grid Corp. of the Philippines’ (NGCP) application to undertake 13 capital expenditure projects worth a combined P93.68 billion, covering transmission and substation developments across Luzon and Visayas.

In an open commission meeting on Thursday, ERC Regulatory Operations Service Acting Director Alvin Jones M. Ortega said the projects were filed under NGCP’s application for the fifth regulatory period (5RP), in compliance with the Electric Power Industry Reform Act of 2001, which requires prior ERC approval before construction.

“Under today’s agenda, there are four items covering these four cases, which would be 13 projects that we are seeking resolution of the Commission,” Ortega said.

NGCP has sought interim relief for the immediate implementation of some projects, citing urgency in expanding transmission capacity, addressing grid bottlenecks, and supporting new power plant connections. 

Of the 31 projects the grid operator flagged as requiring urgent approval, Ortega noted that 18 have already been acted upon, leaving 13 pending before the Commission.

“So, we are still not able to finalize the fifth RP application, but because of NGCP's intent to already pursue and start the implementation of certain projects that are under this application, they have submitted this motion for issuance of intent relief,” he said.

The 13 proposed projects include the Tuguegarao–Enrile 69 kV Transmission Line valued at P733.92 million, the Dasol 230 kV Substation worth P2.12 billion, and the Plaridel 230 kV Substation amounting to P1.08 billion. 

NGCP is also seeking clearance for the Luzon Voltage Improvement Project 5 at P2.60 billion, the Pinamucan 500 kV Substation at P4.12 billion, and the Barotac Viejo–Unidos 230 kV Transmission Line at P10.47 billion.

In the Visayas, the projects cover the Mobile Capacitor Bank worth P403.25 million, alongside the Bolo 5th Bank Project at P2.52 billion.

Additional proposals include the Malaya 230 kV Collector Station at P2.67 billion, the Magalang 230 kV Substation at P3.91 billion, and the Masin 230 kV Collector Station at P2.79 billion. 

The list also features two of the most capital-intensive undertakings: the Sta. Maria 500 kV Substation at P15.85 billion and the Cebu–Leyte Interconnection Lines 3 and 4 at P44.41 billion.

These projects, once cleared by the ERC, are intended to expand transmission capacity, address grid bottlenecks, and support new power plant connections. 

The Cebu–Leyte interconnection lines account for the bulk of the planned spending at more than P44 billion, while other major undertakings include the Sta. Maria 500 kV substation worth P15.85 billion and the Barotac Viejo–Unidos transmission line amounting to P10.47 billion.

Ortega noted that while these projects are necessary to strengthen the national grid, the Commission will also ensure that the recovery of capital expenditures from consumers will be reasonable and fair.