The Energy Regulatory Commission (ERC) has approved the transmission facility of the Alsons Consolidated Resources Inc. that will connect its power plant in Maasim, Sarangani province to the Mindanao Grid.

The ERC has set conditions for the Sarangani Energy Corp. to connect the second phase of its coal – fired power plant to its power substation to the National Grid Corporation of the Philippines (NGCP) facility.

The condition also includes giving NGCP the authority to operate and maintain the dedicated point – to – point transmission facilities, with applicable charges. The line should also be developed and built within the approved system impact and facility study.

“Any portion thereof required for competitive purposes or connect to any other user, ownership of the same shall be transferred to TRANSCO/NGCP at fair market value,” the ERC said.

The approval followed the projected electricity demand of Mindanao to increase at an annual growth rate of 4.57% – which is said to be the highest growth rate in the country’s three grids.

Sarangani Energy said that Mindanao “has been experiencing under generation since 2010. “This is expected to continue, if not worsen if the rapid growth of the region’s electricity demand is not met”

“It’s peak electricity demand of 1,407 MW [megawatts] in 2012 is seen to increase to 2,068 MW in 2020 and will increase further to 3,259 MW in 2030,” Sarangani Energy said in their application.

The Sarangani Energy Corp is a subsidiary of the Alsons Consolidated Resources, Inc.