ERC ramps up approval of power projects

MANILA, Philippines — The Energy Regulatory Commission (ERC) has ramped up the approval of power deals and operational permits, further reinforcing the country’s electrical backbone.

From January to March, the ERC issued over 900 certificates of compliance (COC) and provisional authorities to operate as well as authorized 14 power supply agreements (PSAs).

Broken down, 94 self-generating facilities, seven independent power producers and 868 net-metering qualified end-users secured COCs, while 77 projects received provisional approvals.

These projects are expected to bring an additional 5,419 megawatts of supply to the national grid, the ERC said.

COCs authorize the operation of power plants, while provisional authorities allow generation companies (gencos) to begin operations while waiting for full COC approval.

The approved PSAs in the first quarter, meanwhile, cover contracts between gencos and distribution utilities serving consumers in eastern Visayas.

A bilateral agreement helps mitigate consumers’ exposure to the volatile prices in the Wholesale Electricity Spot Market, the centralized venue for power trading.

ERC chairperson and CEO Monalisa Dimalanta said the approval of these permits and contracts was way earlier than the timeframe mandated under the Energy Virtual One-Stop Shop (EVOSS) Act.

This is proof that the reforms we are undertaking are speeding up our regulatory processes to ensure energy security through additional capacity from new grid-connected facilities, while also empowering consumers to save on electricity costs by generating their own power, Dimalanta said.

Under EVOSS, the respective processing of COC and PSA approvals must be completed within 60 and 75 days from application, the ERC said.

But on average, the regulator said it was able to process COCs within 26 days and PSAs in just 60 days.