The Energy Regulatory Commission (ERC) has approved the proposed P13 billion substation of the National Grid Corporation of the Philippines (NGCP) in Pasay City.

The substation will initially have a capacity of two 300 MVA transformers which will be connected to the Las Piñas 230 kV substation. The project will be funded by the NGCP’s Internal Cash Generated (ICG) fund.

“The new NGCP substation in Pasay will provide solution to the overloading problem and will allow more room for capacity expansion in the future,” ERC Chairperson and CEO Agnes VST Devanadera was quoted in a statement.

The Pasay substation was proposed as the Las Piñas substation could not be expanded anymore due to space constraints. It will also cater to the future connections of the Manila-Navotas substation project, and the proposed Bataan-Cavite/Metro Manila Line Project.  

The approval of the Pasay substation is still subject to optimization based on its actual use and/or implementation during the reset process for the next regulatory period, as stated in the Rules for Setting the Transmission Wheeling Rates (RTWR) and other relevant issuances of the ERC.  

Optimization includes the removal of redundant assets and over-capacity, including inefficient design and “gold-plated” engineering within the existing network. A competitive bidding for the purchase of major materials should also be done.

The NGCP is mandated to improve and expand its transmission facilities, consistent with the Grid Code and the Transmission Development Plan (TDP) to adequately serve generation companies, distribution utilities and suppliers that require transmission service and/or ancillary services through the transmission system, as mandated by the Electric Power Industry Reform Act (EPIRA).

“This NGCP Pasay Substation Project will help address the country’s growing power demand in terms of ensuring grid security, reliability, and power quality,”Devanadera said.