The National Grid Corporation of the Philippines (NGCP) won regulatory approval to build a ₱13 billion substation in Camarines Sur, a critical infrastructure link designed to integrate the country's nascent offshore wind industry into the Luzon-Visayas transmission network.

In a decision posted on its website, the Energy Regulatory Commission (ERC) said it greenlighted the Milaor 500-kilovolt substation project to accommodate an expected surge in renewable energy capacity.

According to the ERC, the development will be split into two stages, with the first phase scheduled for completion by 2027 and the second by 2030.

The project acts as a cornerstone for the government’s push to diversify the energy mix and reduce dependence on fossil fuels under Executive Order No. 21.

By establishing a centralized connection point in Bicol, the NGCP intends to facilitate the entry of "front runner" offshore wind projects that are expected to begin commercial operations as early as 2028.

To meet aggressive installation timelines, the NGCP will prioritize the deployment of power circuit breakers at both 500-kilovolt and 230-kilovolt switchyards.

The regulator noted that the Department of Energy has already issued circulars to streamline the permitting process for these large-scale offshore ventures.

Once operational, the Milaor facility is expected to host a cluster of proposed wind farms. These include the 600-megawatt San Miguel Bay project, the 500-megawatt Camarines Sur project, the 300-megawatt Pasacao-San Fernando project, and the 200-megawatt Calabanga project.

Total capacity from the region's proposed wind pipeline is estimated at approximately 3,000 megawatts.

The ERC directed the grid operator to synchronize its implementation timelines with developers and conduct necessary technical studies to ensure the network can handle the variable nature of wind power.