The Energy Regulatory Commission has approved the National Grid Corp. of the Philippines’ application for P33 billion worth of power plant connection projects in Luzon and Visayas.
After deliberating and evaluating the evidence, the ERC authorized the NGCP to implement the capital expenditure projects. The commission stated the move ensures “continuous, safe, reliable and efficient service,” as mandated by regulatory powers.
The projects remain subject to optimization based on actual use and verified expenses. These will be audited through invoices and supporting documents during the reset process for the relevant regulatory period.
In its application, the NGCP said the projects aim to systematically expand and rehabilitate the transmission system. This will accommodate incoming generation plants and sub-transmission facilities of distribution utilities at various substations.
The approved scope includes Luzon Connection Requirements for Power Plants Project 1, which connects incoming generation plants, and Project 2, which involves installing power circuit breakers. Project 3 focuses on integrating new generating facilities and directly connected customers into the Luzon grid.
In the Visayas, Connection Requirements Projects 1 and 2 will link power plants to the grid through the installation of associated equipment.
The regulator directed the NGCP to complete Luzon Connection 1 by Feb. 29, 2028, and Luzon Connection 3 by March 31, 2028. Other deadlines include Visayas Connection 1 on Oct. 31, 2028; Visayas Connection 2 on Feb. 29, 2029; and Luzon Connection 2 on Dec. 31, 2030.
Under the Philippine Grid Code, the NGCP must provide nondiscriminatory open access as the system operator and transmission network provider. The company is required to develop the transmission system to accommodate generation projects while meeting performance standards for capacity, reliability and safety.
Under Republic Act 9511, the NGCP holds a congressional franchise to operate and maintain the nation’s high-voltage backbone system. This includes transmitting electricity through interconnected lines and substations, managing system operations, and performing activities necessary for safe and reliable transmission.
