Power projects delayed: ERC postpones NGCP infrastructure plans


The Energy Regulatory Commission (ERC) announced that it has deferred six capital expenditure (capex) projects of the National Grid Corporation of the Philippines (NGCP).

In a decision posted on Feb. 24, the ERC cited pending issues that needed to be addressed before approving the NGCP projects.

Regulators have yet to disclose what concerns are to be resolved.

NGCP initially filed this application in 2021. However, due to the significant percentage increase in some project costs and certain changes in project names and components, the state-run grid corporation refiled the projects in 2022.

The filed projects seeking immediate implementation included the 69-kilovolt (kV) Concepcion-Sta. Ignacia transmission line project, which was designed to address the overloading of the 69-kV Concepcion-Camiling transmission line and bring in more capacity to cater to the rising demand in Tarlac.

According to NGCP, the estimated project cost was nearly at ₱1 billion and was set to be implemented in 66 months.

Another project included in the list was the 230-kV San Simon substation project, approximately worth around ₱4.4 million, with an implementation period of 68 months.

“The project will accommodate the growing demands of existing steel mills and directly connected industries, as well as support the entry of new steel mills and industrial loads in San Simon, Pampanga,” NGCP stated.

The substation project is also meant to lessen the overload situation of different transmission facilities and become an alternative source for loads connected at Mexico substation.

Meanwhile, there were two refiled projects located in Luzon, while one project in Visayas was also refiled.

The ₱6.35 million 230-kV Laray substation project was meant to provide a new gas-insulated switchgear substation in Laray to minimize the overloading of Quiot and Cebu substations during normal conditions as well as help secure power delivery in Metro Cebu; its implementation period was set to 147 months.

“It will accommodate future developments and will provide terminations for customers in the area,” it added.

The ₱3 million Calbayog-Allen transmission line project would manage the growing power load in Northern Samar as well as welcome the entry of the San Isidro wind farm of Lihangin Wind Energy Corporation.

Finally, the 138-kV Maco-Mati transmission line project, which costs about ₱3.6 million, was aimed to provide a grid connection point for Davao Oriental Electric Cooperative (DORECO) to relieve the overloading situation in the 69-kV Maco-Banaybay line, which services DORECO and Northern Davao Electric Cooperative (NORDECO).