National Grid Corp. of the Philippines is seeking authority from the Energy Regulatory Commission to immediately implement the P2.82 billion Laoag Power Quality Improvement Project.
In its application with the ERC, NGCP said the project aims to mitigate voltage fluctuations in Ilocos Norte, which have been observed following the connection of additional wind power projects.
Ilocos Norte has an existing variable renewable energy (VRE) capacity of 546 megawatts, of which 362 MW are wind and 184 MW are solar. Incoming plants for 2025 to 2026 totaling 405 MW—comprising 149 MW of wind and 256 MW of solar—will result in a total VRE capacity of 951 MW in the province.
NGCP said these fluctuations are expected to worsen with the commercial operation of more VRE plants in the area. To increase generation limits, NGCP adjusted the voltage control settings of existing plants, resulting in an increased dispatch limit of 525 MW.
However, these adjustments are not intended for the long term. Additional wind plants are expected to commence commercial operations, likely worsening voltage fluctuations in Laoag. NGCP said the project will increase the maximum allowable VRE generation dispatch, addressing current limitations.
The project involves the installation of a 50 MVAR grid-forming static synchronous compensator (GFM-STATCOM) and will be complemented by 2×25 MVAR 230-kilovolt capacitor banks at the Laoag 230-kilovolt substation.
“With the implementation of GFM-STATCOM, approximately up to 605 MW of VRE capacity can be accommodated in the Laoag area,” NGCP said. “This is an increase of 80 MW compared to the existing 525 MW threshold. Through the installation of GFM-STATCOM and 2×25 MVAR capacitor banks, an additional 80 MW of power can be dispatched at Laoag.”
Moreover, NGCP said GFM-STATCOM will provide the capability to rapidly inject or absorb reactive power. This is essential for precise voltage regulation and effectively mitigating voltage fluctuations inherent with the increasing integration of VRE sources into the northern part of the Luzon grid.
The proposed project has an estimated implementation period of 22 months from approval based on a “best-case scenario.”
“Considering that planning, development and construction of transmission facilities take several years, it is critical for NGCP to align its project development with expected demand by acting immediately,” the company said.
The Electric Power Industry Reform Act of 2001 directs the company to submit any plan for expansion or improvement of its facilities for approval by the ERC. This project is included in NGCP’s Transmission Development Plan 2025-2050, which was submitted to the Department of Energy for approval.
