Households and businesses in Mindoro are expected to see lower power costs and improved supply reliability after the Energy Regulatory Commission (ERC) approved National Grid Corp. of the Philippines’ (NGCP) P90.66-billion Batangas–Mindoro Interconnection and Backbone Project.

In a decision dated 25 November, the Commission approved the project with a total cost of P90.65 billion, including permit fees, while the net cost stands at P89.98 billion. 

Once completed, the interconnection will allow Mindoro to draw cheaper power from Luzon and eventually export excess renewable energy as more projects in the island’s Competitive Renewable Energy Zone come online.

The ERC said the long-planned interconnection will finally end Mindoro’s dependence on expensive, diesel-fed power plants and the Universal Charge–Missionary Electrification (UCME) subsidy. 

It added that linking Mindoro to the Luzon grid will result in significant consumer savings. It estimates that ending the island’s reliance on diesel generation could save about P28.75 billion in UCME subsidies from 2027 to 2042, leading to a reduction of around P0.051 per kilowatt-hour in the universal charge.

Strict timeline set

To ensure timely delivery, the ERC set strict deadlines, directing NGCP to complete Stage 1 by 30 September 2027 and Stage 2 by 31 December 2030, and warned that “non-compliance therewith will result in administrative penalty.”

After evaluating NGCP’s design, the Commission also found the selected configuration to be the most cost-efficient, saying “the Commission finds that Option 1 is the more economical project to implement.”

The ERC said the Mindoro–Luzon interconnection also aligns with long-term national energy goals, calling it “consistent with the 2024–2050 Transmission Development Plan.” 

The Department of Energy has likewise declared the project an Energy Project of National Significance due to its  value to the country’s power roadmap.