The Energy Regulatory Commission (ERC) has approved NKS Solar One Inc.’s P1.38-billion grid connection project, allowing the renewable energy developer to build the transmission facilities needed to connect its 250-megawatt peak floating solar project in Laguna to the Luzon grid. 

In a decision dated 16 July, the ERC authorized NKS to develop and own dedicated point-to-point transmission facilities linking its 250-MWp/190-megawatt alternating current floating solar project to the 230-kilovolt Lumban Substation of the National Grid Corp. of the Philippines (NGCP).

The Commission adopted an updated project cost of P1.38 billion, down from the original P1.62 billion estimate after NKS shortened the transmission line and optimized the project design. 

The project consists of the 162-MWp Caliraya Floating Solar Power Project and the 88-MWp Lumot Floating Solar Power Project. 

The ERC treated them as separate generation facilities because they will participate in different rounds of the Green Energy Auction Program. 

The Commission approved NKS’ ownership of the first and second transmission facilities. However, it denied the company’s request to operate and maintain them. 

Instead, NGCP will operate and maintain the facilities, with applicable charges to NKS. The ERC also ordered the project’s third facility transferred to NGCP because it functions as a transmission asset. 

The ERC said the transmission facilities are necessary to connect the floating solar project to the grid. It said the project supports the government’s push to accelerate renewable energy development under the Renewable Energy Act. 

The Commission added that the project would benefit electricity consumers by helping provide a continuous, reliable and efficient power supply. 

Under the approval, the facilities may only be used by NKS’ generating assets. If they are later needed to connect other users or for competitive purposes, ownership must be transferred to NGCP at fair market value, subject to optimization. The rules also include safeguards to prevent double recovery of costs. 

The ERC also required the Caliraya and Lumot floating solar plants to remain subject to curtailment and dispatch prioritization until NGCP completes the Taguig-Taytay 230-kV Transmission Line, including the Taytay bypass component. 

NKS must coordinate with NGCP on a technical assessment following changes in the project’s commercial operation dates. It must also execute an operation and maintenance agreement with NGCP and pay a P10.35-million permit fee within 15 calendar days from receipt of the decision.