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The Energy Regulatory Commission (ERC) has granted final approval for the National Grid Corporation of the Philippines’ (NGCP) ₱1.631-billion substation project in Pinili, Ilocos Norte. The 230-kilovolt (kV) facility aims to enhance power transmission in the region.
According to the ERC, the green light followed a thorough review and is “subject to optimization based on actual use and verified expenses, and the additional instructions issued by the Commission during the deliberation.”
The newly approved substation in Pinili, Ilocos Norte is designed to support rising power demand in the region and strengthen grid reliability during major outages, particularly for areas dependent on the Laoag substation.
Set for completion in 62 months, the facility will also serve as a key hub for connecting future renewable energy projects. NGCP earlier noted that integrating more clean energy into the grid will require not only major transmission upgrades but also stronger policy backing and infrastructure support.
But the energy sector can’t do it alone. NGCP stressed that integrating more renewable power into the grid will also demand full support from other industries, particularly in upgrading roads, ports, and other logistics infrastructure to handle the surge in materials needed for transmission development.
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More CAPEX projects
The Pinili substation is one of six capital expenditure projects NGCP submitted for approval. These were initially put on hold by the ERC earlier this year over various concerns, including transmission line requirements and system impact issues.
The five NGCP projects still pending ERC approval span key regions nationwide. These include the ₱999.7-million Concepcion–Sta. Ignacia 69-kV transmission line in Tarlac, the ₱4.41-billion San Simon 230-kV substation in Pampanga, the ₱6.35-billion Laray 230-kV substation in Cebu, the ₱3.31-billion Calbayog-Allen 230-kV transmission line in Northern Samar, and the ₱3.6-billion Maco-Mati 138-kV transmission line in Davao.
The six proposed NGCP projects, with a combined estimated cost of ₱20.33 billion, have varying timelines, ranging from a minimum of 36 months to as long as 147 months for completion.
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Maintaining a reliable transmission system
NGCP highlighted the urgent need to move forward with its proposed capital projects, stressing that a dependable and efficient transmission network is critical to its role.
“It is indispensable for NGCP to ensure a reliable and high-performance operation of the transmission system,” the company said. “Thus, to avoid disruption of operation and to ensure continuous compliance with NGCP’s mandate under the Epira as the transmission operator, it is imperative that the implementation of the proposed capex projects be immediately approved.”
The Electric Power Industry Reform Act (EPIRA) of 2001 states that NGCP must get approval from the ERC before expanding or upgrading its facilities. Last month, the ERC completed its review of NGCP’s fourth regulatory period covering 2016 to 2022 and set a maximum allowable revenue of ₱335.78 billion for the company.
The ERC also approved NGCP’s request to recover ₱28.29 billion in previous under-recoveries, which will lead to higher transmission charges. Over the next seven years, NGCP can increase transmission fees by ₱0.1013 per kilowatt-hour to cover these costs, spreading the recovery over 84 months from the decision date.
Sources:
https://businessmirror.com.ph/2025/05/12/ngcp-ilocos-project-gets-final-nod-of-erc