ERC OKs NGCP’s P32-billion Luzon capex projects – BusinessWorld Online
THE Energy Regulatory Commission (ERC) has approved the proposed capital expenditure (capex) projects of the National Grid Corp. of the Philippines (NGCP) in Luzon worth P32 billion.
In a notice, the regulator greenlit NGCP’s planned P18.82-billion Western Luzon 500-kilovolt (kV) backbone project and the P13.2-billion Nagsaag-Santiago 500-kV transmission line project.
These projects are part of the company’s 15 proposed transmission and substation projects in its 2021 application.
The Western Luzon 500-kV backbone is meant to accommodate the entry of bulk generation in Luzon and reinforce the 500-kV transmission network in Luzon to achieve a “higher level of reliability” and ensure supply security.
Meanwhile, the Nagsaag-Santiago 500-kV transmission line project is expected to cater to the incoming capacities from hydroelectric, geothermal and solar power plants in the provinces of Ifugao, Kalinga and Apayao.
In approving the transmission line project, the ERC said it would coordinate with the Department of Energy about “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.”
In February, the ERC approved four capital expenditure projects totaling P5.02 billion — the Granada 230-kV substation project, Sumangga 138-kV substation project, La Carlota 138-kV substation project and Nagsaag-Tumana 69-kV transmission line.
Under the Electric Power Industry Reform Act of 2001, the grid operator must seek the approval of the ERC of any planned expansion or facility improvement, in line with its mandate to build, finance and improve the nationwide transmission system and grid.
Last year, NGCP said it was allotting more than P600 billion in spending for more than 100 transmission projects in its pipeline. These projects, which are ready for implementation, are part of the Transmission Development Plan 2024-2050. — Sheldeen Joy Talavera
