NGCP studying move to open grid projects to third parties

The National Grid Corp. of the Philippines (NGCP) is reviewing new Energy Regulatory Commission (ERC) rules that would allow third parties to finance and build transmission projects.

Reacting to the publication of the new rules, the transmission operator said it will evaluate the framework's implications on its rights and responsibilities under its franchise and concession agreements.

“NGCP recognizes the importance of timely transmission development in support of the country's energy security objectives. We are presently evaluating the newly issued rules in light of our rights, obligations, and responsibilities under the Concession Agreement, Republic Act No. 9511, and other applicable laws, and we will take the appropriate steps to ensure that the integrity of the national transmission framework is preserved,” the company said.

Under ERC Resolution No. 18, Series of 2026, qualified entities may finance and construct Department of Energy-designated Associated Transmission Projects and Priority Projects. These include transmission lines, substations, switchyards, and related facilities needed to connect new power plants to the grid and strengthen the transmission network.

The ERC said the framework seeks to address delays in transmission development that have prevented some generation facilities from delivering their full output despite being ready for operation.

While NGCP has not indicated whether it will challenge the new rules, the company underscored that any implementation must be assessed in the context of its legal mandate and obligations as operator of the country's transmission system.

ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said the rules provide "a clear regulatory pathway" for accelerating critical transmission projects while maintaining transparency, accountability, and consumer protection.

"Through these Implementing Rules, we are providing a clear regulatory pathway to enable critical transmission projects to be completed faster while maintaining transparency, accountability, and consumer protection," Juan said.

The framework allows qualified generation companies to finance and construct ATPs, while the National Transmission Corp. may undertake Priority Projects or engage government agencies, government-owned and controlled corporations, and private entities to develop such facilities on its behalf under DOE Circular No. DC 2026-02-0007.