TransCo Moves To Improve Renewable Energy Funding, Clear Transmission Bottlenecks
- July 21, 2026
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The National Transmission Corp. (TransCo) and the Independent Electricity Market Operator of the Philippines Inc. (IEMOP) have formalized a new partnership to strengthen the administration of key renewable energy support funds, as the state-run firm simultaneously accelerates efforts to resolve long-standing right-of-way issues that have hindered transmission development.
The memorandum of agreement (MOA), signed on July 15 by TransCo President and Chief Executive Officer Joseph Omar A. Castillo and IEMOP President and Chief Executive Officer Robinson P. Descanzo, establishes a structured operational framework for managing the Feed-in Tariff Allowance (FIT-All) Fund and the Green Energy Auction Allowance (GEA-All) Fund.
The agreement reinforces TransCo’s role as administrator of both funds, particularly in overseeing the collection and remittance of proceeds from the Wholesale Electricity Spot Market (WESM), while enhancing coordination and data sharing with IEMOP to improve transparency, accountability, and accuracy in implementing the country’s renewable energy initiatives.
Framework For Renewable Energy Funds
TransCo said the agreement clearly defines the responsibilities of both organizations in administering the FIT-All and GEA-All mechanisms, which support government programs aimed at expanding renewable energy generation.
“The agreement establishes a comprehensive operational framework for the administration of both the FIT-All Fund and the GEA-All Fund, particularly in the collection and remittance of WESM proceeds,” the state-run corporation said.
The partnership also aligns with the Renewable Energy Market (REM) Rules, under which TransCo is tasked with providing data needed for feed-in tariff allocation and supporting the issuance and verification of Renewable Energy Certificates (RECs).
The MOA likewise reaffirms TransCo’s legal responsibilities as FIT-All Fund Administrator under Energy Regulatory Commission (ERC) Resolution No. 24, Series of 2013, and as GEA-All Fund Administrator under ERC Resolution No. 25, Series of 2026.
According to TransCo, closer institutional collaboration with IEMOP will help ensure the efficient implementation of renewable energy support mechanisms while promoting greater transparency in the management of industry funds.
Green Charges
The FIT-All is a uniform charge collected from all on-grid electricity consumers and reflected as a separate item in monthly power bills. The fund finances payments to renewable energy developers guaranteed fixed feed-in tariff rates for electricity generated by qualified projects over a 20-year period.
Meanwhile, the GEA-All is a uniform charge intended to finance payments to renewable energy developers that secure projects through the government’s Green Energy Auction Program, supporting the country’s transition toward cleaner sources of electricity.
Last month, however, the ERC extended the temporary suspension of GEA-All collections for the July and August billing periods to help cushion consumers from higher electricity costs amid prevailing economic pressures.
Accelerating Right-Of-Way Settlements
TransCo is also intensifying efforts to resolve inherited right-of-way (ROW) claims that have long complicated the expansion and modernization of the country’s transmission network.
The corporation is implementing several initiatives, including the deployment of a geographic information system (GIS) that will centralize mapping of transmission corridors and provide quicker access to land records while safeguarding critical spatial and documentary information.
TransCo has also partnered with the Land Registration Authority (LRA) to verify land ownership, obtain digital parcel maps and geospatial data, and secure certified land records needed to facilitate the processing of ROW claims.
In addition, the state-run firm said it is exploring alternative property valuation approaches that remain consistent with existing laws while seeking legislative measures that would allow more competitive compensation for affected landowners.
TransCo clarified that most of the ROW cases being addressed were inherited from the National Power Corp. and have little to no impact on the operations and maintenance responsibilities of the National Grid Corp. of the Philippines (NGCP), which is authorized under its franchise to acquire private property for transmission projects.
The company added that it has continued assisting NGCP in resolving land-related concerns. In 2023, TransCo deployed additional personnel to validate ROW claims covering five priority transmission lines in North Luzon, enabling the grid operator to focus on transmission upgrades and maintenance.
“TransCo remains dedicated to safeguarding national transmission assets and ensuring the stability of the country’s power infrastructure,” the company said, adding that addressing right-of-way concerns is essential to supporting reliable and efficient electricity transmission for consumers.
Source:
https://businessmirror.com.ph/2026/07/16/pact-promotes-transparency-in-use-of-clean-energy-funds
https://tribune.net.ph/2026/07/16/transco-eyes-faster-right-of-way-resolution-for-power-grid
