The Energy Regulatory Commission (ERC) has given the green light for Manila Electric Co.-backed Terra Solar Philippines Inc. to build dedicated transmission facilities for its massive 3,500-megawatt (MW) hybrid solar and battery project.

In a 33-page decision dated 6 October, the ERC said the project will help strengthen Luzon’s grid and ensure a stable power supply for consumers.

Construct and own transmission lines

The approval allows Terra Solar — a subsidiary of SP New Energy Corp. — to construct and own point-to-point transmission lines that will connect its Nueva Ecija facility to the Luzon grid.

Under the ERC decision, Terra Solar’s dedicated facilities will initially connect through an interim bus-in link to the Nagsaag–San Jose 500-kilovolt (kV) line of the National Grid Corporation of the Philippines (NGCP).

Once completed, the lines will transfer to the planned San Isidro 500kV Substation as the project’s permanent connection point.

While the regulator allowed Terra Solar to develop and own the facilities, it denied the company’s bid to operate them.

Should be operated by the NGCP

“The dedicated point-to-point limited facilities should be operated by the NGCP… to ensure and maintain the reliability, adequacy, security, stability, and integrity of the nationwide electrical grid,” the Commission ruled.

The ERC also directed NGCP to “expedite the filing and completion” of its pending transmission projects, including the San Isidro and Baras 500kV substations and related lines in Luzon.

These projects are seen as crucial to integrating large-scale renewable energy developments like Terra Solar’s into the grid.

As part of the approval, Terra Solar is required to pay P106.86 million in permit fees and submit an operation and maintenance agreement with NGCP within 30 days of its execution.

The Commission likewise cautioned that any future breach of approval conditions will face administrative consequences.

It warned that violations under Section 9 of the Electric Power Industry Reform Act “shall be without prejudice to any administrative action that the Commission may undertake” against the developer.