The Energy Regulatory Commission (ERC) has approved two major transmission projects of the National Grid Corporation of the Philippines (NGCP), collectively worth ₱32.02 billion, a move poised to significantly boost the country’s power infrastructure and corporate energy capacity.
Announced in a May 14 notice but made public only on Thursday, the approval covers the 500-kilovolt (kV) Backbone Stage 2 project in Western Luzon worth ₱18.82 billion and the 500 kV Nagsaag-Santiago line worth another ₱13.2 billion. These projects are designed to accommodate rising power generation—particularly from renewables and bulk plants in Northern Luzon—and to enhance grid reliability and supply security.
NGCP, which operates the country’s state-owned transmission network, is expected to complete the Western Luzon project by October 2027, and the Nagsaag-Santiago line by November 2030. Both projects will support the influx of renewable energy from areas like Ifugao, Kalinga, and Apayao, according to NGCP’s filings.
While granting the go-ahead, the ERC emphasized that the final project cost remains subject to optimization based on audited expenditures. The commission also raised concerns to the Department of Energy over the trend of building power generation in regions lacking adequate transmission access—prompting costly and expansive grid developments.
This regulatory milestone signals continued commercial and infrastructure alignment between the government and the NGCP, which is privately operated under a concession agreement, reinforcing the broader push toward energy security and sustainability.
