The Energy Regulatory Commission (ERC) has authorized Citicore Solar Batangas 1 Inc. to develop and own dedicated point-to-point transmission facilities connecting its 50-megawatt (MWAC) Luntal Solar Power Project in Tuy, Batangas to the Luzon grid, a move that advances another utility-scale renewable project but underscores near-term grid constraints in southern Luzon. 

In a decision promulgated on January 14, the ERC approved Citicore’s application to link the Luntal project to the National Grid Corporation of the Philippines’ (NGCP) 69-kilovolt Tuy Substation via the Lumbangan collector switch, subject to conditions. The ruling allows the developer to own the connection assets, consistent with the Electric Power Industry Reform Act (EPIRA), while mandating that NGCP operate and maintain the facilities to safeguard grid reliability. 

The Commission said the authority is conditional, warning that the plant’s output will face “generation curtailment and appropriate dispatch prioritization” until key transmission upgrades around Tuy are completed, including the Tuy 500/230-kV Substation (Stage 1), the South Luzon 230-kV Substation Upgrading 2 Project, and additional transformer capacity. 

Citicore’s Luntal solar facility is included in the Department of Energy’s Transmission Development Plan and is a winning project under Green Energy Auction 4. The ERC noted that while the plant is intended to sell power through retail electricity suppliers, grid connection is a prerequisite for commercial operations. The project’s commercial operation date has been revised, with the ERC citing a latest target of March 2026. 

On costs, the Commission approved an updated project cost of about PHP167.68 million for the dedicated facilities, including the power transformer, for permit-fee computation. The ERC emphasized that this amount “does not necessarily constitute the fair market value” should the assets later be required for competitive purposes and transferred to NGCP.  

What does this ruling signal for future renewable projects connecting to constrained grid nodes—and how should developers and policymakers address curtailment risks as more capacity comes online?

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