Over P93 billion grid projects await ERC approval

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) has sought approval from the Energy Regulatory Commission (ERC) to move forward with 13 transmission projects worth P93.68 billion.

In an open commission meeting, ERC officials said the projects are bundled under four capital expenditure applications filed by the NGCP to expand the country’s electrical superhighway.

“That is the intent for them to start construction. Noting, of course, that these projects would go over several months, and some of them would go over years of implementation,” said Alvin Jones Ortega, acting director of the ERC’s regulatory operations service.

“So that’s why they would need an immediate approval so that they can already pursue implementation,” Ortega said.

Among the largest projects in terms of capital requirements are the P44.4-billion Cebu-Leyte interconnection lines 3 and 4, the P15.85-billion Santa Maria 500-kilovolt substation and the P10.47-billion Barotac Viejo-Unidos 230 kV transmission line.

The list also includes the P733.9-million Tuguegarao-Enrile 69 kV line, the P2.11-billion Dasol 230 kV substation, the P1-billion Plaridel 230 kV substation, the P2.6-billion Luzon voltage improvement project and the P4.1-billion Pinamucan 500 kV substation.

The NGCP likewise proposed the P403.2-million Visayas mobile capacitor bank project, the P2.52-billion Bolo 5th bank project, the P2.67-billion Malaya 230 kV substation, the P3.91-billion Magalang 230 kV substation and the P2.79-billion Masiit 230 kV collector station.

According to Ortega, the grid operator is seeking interim relief for these projects, pending the ERC’s resolution on its fifth regulatory period rate reset application.

The rate reset process sets the rules and parameters for the investment, operations and pricing mechanisms of the NGCP to determine how much should be charged to consumers.

In an earlier interview, ERC chairperson and CEO Francis Saturnino Juan said the energy regulator was looking to expedite the issuance of its decision on the NGCP’s proposed projects.

NGCP spokesperson Cynthia Alabanza, meanwhile, welcomed the move, saying they “really want expedited and on-time regulatory approvals” to help the grid operator fulfill its mandate.

As the country’s sole transmission operator, the NGCP is responsible for the maintenance, development and operation of the national grid.