NGCP projects put on ERC priority list

MANILA, Philippines — The Energy Regulatory Commission is looking to issue its decision on the National Grid Corp. of the Philippines’ (NGCP) proposed transmission projects before the end of this month.

ERC chairman and CEO Francis Saturnino Juan said reviewing the NGCP’s pending capital expenditure (capex) projects is at the forefront of the regulatory agency’s agenda.

He said the ERC has already discussed and approved the remaining capex projects excluded in the grid operator’s fourth regulatory period (4RP), with several now included in the 5RP.

“But if there is a need for us to issue a decision on these pending capex projects so they can be started by the NGCP, then we will do that,” Juan said in a recent interview.

As the sole transmission operator, the NGCP is responsible for the maintenance, development and operation of the country’s electrical superhighway.

In April, the ERC rendered its decision on NGCP’s 4RP, covering the years 2016–2022, allowing the grid operator to collect a total under-recovery of P28.3 billion from consumers.

According to Juan, the ERC has also received a letter from the Department of Energy, highlighting the critical NGCP capex projects that demand immediate attention from the commission.

He did not provide further details on these projects.

“You’ll know within the month if we achieve our target of addressing the NGCP (projects),” the ERC chief said.

As part of the country’s energy transition, the government aims to increase the share of renewables in the power mix to 35 percent by 2030 and 50 percent by 2040 from the current 22 percent.

However, developers are facing uncertainties due to the limited availability of interconnection points, as several awarded service contracts are located far from existing transmission lines.