The Energy Regulatory Commission (ERC) has authorized Ayala-led AC Energy to connect  its 300-megawatt (MW) modular diesel power plant in Pililla, Rizal to the Luzon Grid.

In its decision, the ERC said it has approved the application of AC Energy subsidiary Ingrid Power Holdings, Inc. to develop and own a dedicated point-to-point transmission facility. 

The transmission project will link the diesel plant to the grid by connecting to the 230-kilovolt (kV) Malaya substation operated by the National Grid Corporation of the Philippines (NGCP).

The plant is intended to provide NGCP with ancillary services or reserve power, which the Department of Energy has been harping on in the wake of last month’s Red Alerts and rotating brownouts.

ERC said that Ingrid had spent Php902.25 million for the transmission project, which covered Phase 1 of the Ingrid substation, Phase 1 of the Malaya substation, project management costs, and import fees, according to figures taken in November 2020. 

The project’s development will undergo two phases, with installations of 150MW each.

In approving AC Energy’s connection to the grid, the ERC also directed the firm to pay permit fees worth Php6.77 million in accordance with Commonwealth Act 146, and the commission’s revised fees and chargers.

Meanwhile, Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) states that power generation companies may develop and own or operate dedicated point-to-point limited transmission facilities that are consistent with the transmission development plan.

In December 2020, Axia Power Holdings Philippines, a subsidiary of Japanese firm Marubeni Corporation, sealed a deal with AC Energy subsidiary ACE Endevor, Inc. to acquire a 50% stake of the Pililla diesel plant. Ingrid is the firm’s special purpose vehicle that is fast-tracking the diesel plant’s development.