The Energy Regulatory Commission (ERC) has approved the National Grid Corporation of the Philippines’ (NGCP) proposed P2.79-billion Laoag power quality improvement project in Ilocos Norte.
The project aims to strengthen and stabilize electricity supply in the province as more wind and solar power plants connect to the grid. NGCP has been ordered to complete the project by the end of the year.
According to NGCP, the project will install new equipment at the Laoag 230-kilovolt substation, including a 50 MVAR grid-forming static synchronous compensator and two 25 MVAR capacitor banks. These systems are designed to control voltage fluctuations and oimprove overall grid reliability.
The ERC said the project is necessary because Ilocos Norte now hosts 509 megawatts (MW) of existing wind and solar capacity, with another 428.95 MW expected to begin operations from June 2026 onward.
Variable renewable energy sources such as wind and solar can cause unstable voltage levels when weather conditions suddenly reduce power generation. Without enough backup systems or grid support, these fluctuations can affect power quality and reliability.
The ERC noted that the approved project cost will still be reviewed based on actual and verified expenses. It also directed NGCP to pay P20.99 million in permit fees.
The approval highlights the growing need to upgrade the country’s power grid as the Philippines expands its renewable energy sector.
