The Energy Regulatory Commission (ERC) has approved the National Grid Corporation of the Philippines’ (NGCP) 230-kilovolt Pinili substation project, a ₱1.63-billion infrastructure initiative aimed at strengthening the country’s transmission network and supporting renewable energy (RE) integration in the Ilocos region.
In a notice of commission action dated 30 April released to the public over the weekend, the ERC authorized the implementation of the substation project but said the approved cost remains “subject to optimization based on actual use and verified expenses.”
The substation that NGCP expects to complete in 62 months, is designed to serve the region’s increasing power demand and enhance system reliability as alternate connection point to the Laoag substation. More significantly, it will serve as a critical node for future RE power plants in Northern Luzon—an area seen as a vital corridor for the country’s green energy push.
“This project is essential to prepare the grid for future growth in power demand and to enable the connection of upcoming renewable energy developments in the area,” NGCP said in its application.
NGCP, the private concessionaire that operates and develops the national transmission grid, has repeatedly called for greater investment and cross-sector collaboration to support the energy transition. The company earlier highlighted that integrating more RE into the grid demands robust transmission expansion, alongside improvements in logistics infrastructure like roads and ports to support large-scale construction efforts.
The ERC, as the country’s quasi-judicial energy regulator, plays a pivotal role in ensuring the cost-effectiveness and strategic relevance of such projects, especially those with long-term commercial and economic implications for the energy sector.
