ERC Approves ₱32B in NGCP Transmission Projects
- May 29, 2025
The Energy Regulatory Commission (ERC) has approved two major transmission projects by the National Grid Corporation of the Philippines (NGCP), with a combined investment of nearly ₱32 billion.
The projects include the second phase of the Western Luzon 500-kilovolt (kV) backbone, estimated at ₱18.82 billion, and the Nagsaag-Santiago 500kV transmission line, valued at ₱13.2 billion.
Both initiatives are part of NGCP’s broader capital expenditure plan for 2020–2025 and beyond, covering Luzon, Visayas, and Mindanao.
(Also read: DOE approves 11 new energy projects for grid impact studies)
Upgrades to boost grid reliability and renewables integration
The Western Luzon 500-kV backbone is designed to integrate large-scale power generation into the Luzon grid and strengthen the existing 500-kV network, with the goal of achieving a “higher level of reliability” and enhancing supply security. As outlined in NGCP’s Transmission Development Plan 2022–2040, the project is expected to “complete the reinforcement of the western transmission corridor.”
The Nagsaag-Santiago 500-kV transmission line project is planned to accommodate renewable energy capacities—specifically geothermal, solar, and hydropower—from the provinces of Ifugao, Kalinga, and Apayao.
The ERC has instructed NGCP to complete the Western Luzon transmission project by October 31, 2027, and the Nagsaag-Santiago line by November 30, 2030.
According to the ERC, the costs of both projects will be subject to optimization based on “actual use and verification of expenses incurred.” This verification will rely on official receipts and other supporting documents.
The ERC also raised concerns with the Department of Energy (DOE) over the “proliferation of projects in areas that have poor accessibility to transmission facilities,” noting that this often compels the construction of “new and extensive transmission lines with very limited capacity.”
(Also read: Securing a Stable Power Supply Crucial for Lowering Electricity Prices in the PH)
NGCP calls for local government support of projects
NGCP has appealed to newly elected local government officials for support in advancing transmission projects. The grid operator emphasized that timely permit issuance and assistance in resolving right-of-way (RoW) disputes are crucial to prevent delays.
“We always work with the view of implementing projects in a timely manner. But having said that, I will renew my call for support for NGCP’s infrastructure projects in terms of right-of-way. Landowners… I hope they will negotiate with us in good faith,” said NGCP spokesperson Cynthia Alabanza.
“Because that’s what I promised, that we will negotiate in good faith. We are also talking to all the newly elected local government executives who I hope will support our initiatives, especially in their localities, in terms of the timely issuance of permits,” Alabanza continued.
She added that the ERC is another key factor in the project timeline. “And of course, we hope for the continued issuances of the required regulatory approvals,” Alabanza said.
As mandated by the Electric Power Industry Reform Act (EPIRA) of 2001, NGCP must secure ERC approval for any proposed expansion or improvement of the transmission system.
(Also read: EPIRA Reforms: Will They Deliver Affordable and Reliable Power?)
Earlier, in February, the ERC approved four capital expenditure projects worth a combined ₱5.02 billion: the Granada 230-kV, Sumangga 138-kV, and La Carlota 138-kV substation projects, along with the Nagsaag-Tumana 69-kV transmission line.
NGCP previously announced plans to invest over ₱600 billion in more than a hundred transmission projects outlined in its Transmission Development Plan 2024–2050, with many ready for implementation.
Sources:
https://bilyonaryo.com/2025/05/23/ngcps-p32b-power-line-projects-get-regulatory-greenlight/power/
https://business.inquirer.net/526841/ngcp-gets-green-light-for-2-projects-worth-p32b
https://www.philstar.com/business/2025/05/23/2445077/erc-oks-p32-billion-ngcp-projects
https://malaya.com.ph/business/corporate/ngcps-p32b-luzon-transmission-line-projects-approved/
https://businessmirror.com.ph/2025/05/22/ngcp-transmission-projects-get-erc-nod/
https://business.inquirer.net/490078/ngcp-earmarks-%E2%82%B1600b-for-grid-projects
