The Energy Regulatory Commission (ERC) has approved the National Grid Corp. of the Philippines’ (NGCP) Batangas-Mindoro 500-kilovolt Interconnection and Backbone Project (BMIBP), which is estimated to cost around P90 billion.
The BMIBP is an upgraded version of the original Batangas-Mindoro Interconnection Project, which the ERC approved in 2022 but was never implemented.
The regulator said a review of the evidence showed the BMIBP would benefit electricity consumers by providing continuous, reliable and efficient power supply, as mandated by Section 2 of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA).
The ERC evaluated the project and found it compliant with the technical and economic parameters under relevant laws, and applicable rules and regulations of the commission.
The ERC said the project would not only benefit Mindoro Island and its consumers, but “its implementation will facilitate the entry of more offshore wind projects in the country, thereby improving the reliability and security of energy supply.”
The project aims to link Mindoro Island to the Luzon Grid, giving the island access to more reliable and competitive generation sources. It’s expected to encourage the development of power generation on Mindoro, potentially supporting about 343 megawatts of solar photovoltaic and 710 MW of wind farms due to the wider market provided by the interconnection.
To support the 500-kV configuration and updated scheme, NGCP cited the latest data from the Philippine Energy Plan 2023-2050 and the national government’s energy policy direction.
NGCP plans to implement the upgraded BMIBP in two stages. Stage 1 involves developing a combination of overhead transmission lines and submarine cables connecting the Pinamucan Substation in Batangas to the proposed Calapan Substation in Oriental Mindoro. The line is designed for 500 kV but will initially be energized at 230 kV.
The project also includes building the Calapan 500-kV Substation, though only the 230/69-kV section will be implemented initially, along with associated 69-kV transmission facilities to connect to the existing island system.
The ERC noted that Stage 1 has an expected target completion of September 2027.
The ERC approved the project cost subject to optimization based on actual use and verified expenses incurred during the subsequent regulatory reset process.
The ERC directed NGCP to complete Stage 1 on or before Sept. 30, 2027, and Stage 2 by Dec. 31, 2030. Noncompliance with the timeline will result in an administrative penalty.
NGCP was also directed to pay a permit fee of P674.859 million.
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