NGCP’s P2.3 billion Laguindingan substation project gets ERC OK

MANILA, Philippines —  The Energy Regulatory Commission (ERC), the power regulator, has given the National Grid Corp. of the Philippines (NGCP) the green light to officially proceed with the construction of a P2.34-billion transmission project.

In a notice of resolution issued on Thursday, the ERC approved the NGCP’s Laguindingan 230 kilovolt (kV) substation project that is expected to ensure grid stability and boost economic growth in Northern Mindanao.

“The new 230 kV substation will bolster the power supply for Misamis Oriental I Electric Cooperative and support the province’s domestic industrial zone, Laguindingan Technopark, with the needed high-power transmission corridor,” it said.

Likewise, the capital expenditure (capex) project is also intended to resolve the overloading issues in the existing Opol substation and address the limitations of the Tagoloan substation.

The Opol substation serves as the main power supply for the Laguindingan area, while several components of the Tagoloan substation require upgrades due to low interrupting capacity.

As such, the ERC directed the NGCP to complete the transmission project by January 31 next year, as failure to meet the deadline could result in administrative penalties.

In a Viber message to reporters, ERC chairperson and CEO Monalisa Dimalanta said the Laguindingan substation is “already 85 percent completed based on the monthly report of the NGCP.”

Dimalanta noted that the grid operator filed the application in January 2021 and was authorized to start the project development without prior approval.

Earlier, the ERC approved three capex projects of the NGCP worth around P38.09 billion across Luzon and Visayas. NGCP is a privately-operated corporation in charge of operating, maintaining and developing the state-owned power grid.

These projects include the P17.09-billion Bolo-Balaoan 500-kV transmission line project, the P16.8-billion Northern Luzon 230-kV loop project and the P4.2-billion Nabas-Caticlan-Boracay transmission project.