The Energy Regulatory Commission (ERC) approved two capital expenditure transmission projects in Luzon costing P32 billion.
The approval, announced by the ERC in its latest notice of commission action, covers the capex projects under Group 3 application of NGCP from 2020 to 2025.
The approved projects are the P18.823-billion Western Luzon 500kV Backbone Project and the P13.2-billion Nagsaag-Santiago 500kV Transmission Line Project.
The Western Luzon Backbone project aims to accommodate the incoming bulk generation entry in North Luzon; complement the proposed Balaoan-Laoag, Bolo- Balaoan and Santiago-Nagsaag 500kV Lines, included in the Luzon Group 2 Projects for 2021-2025; and reinforce the 500kV transmission network in Luzon, achieving a higher level of reliability and ensuring the security of the supply.
The ERC said the said project should be completed by NGCP on or before Oct, 31, 2027.
Meanwhile, the Nagsaag-Santiago Transmission Line Project will cater the incoming capacities from hydro, geothermal and solar power plants in the provinces of Ifugao, Kalinga and Apayao.
The regulator said the project should be completed by NGCP on or before Nov. 30, 2030.
The approvals are subject to optimization based on its actual use and verification of expenses incurred based on official receipts and other supporting documents, during the reset process for the subsequent regulatory period.
“The commission further resolved to communicate to DOE its observations concerning the proliferation of projects in areas that have poor accessibility to transmission facilities, thus, necessitating the construction of new and extensive transmission lines with very limited capacity,” the ERC said.