The Energy Regulatory Commission (ERC) has approved the implementation of the Batangas–Mindoro 500-kilovolt (kV) Interconnection and Backbone Project of the National Grid Corporation of the Philippines (NGCP), a major transmission project that will connect Mindoro Island to the Luzon power grid.

In its decision, the ERC ruled to approve NGCP’s application for the project, with an approved project cost of PHP 89.98 billion for purposes of determining the permit fee. The Commission directed NGCP to complete Stage 1 on or before September 30, 2027, and Stage 2 on or before December 31, 2030. The ERC warned that failure to meet the deadlines will result in administrative penalties.

The ERC also ordered NGCP to pay a permit fee of PHP 674.86 million within 15 days from receipt of the decision.

The project will link Pinamucan Substation in Batangas to the proposed Calapan Substation in Oriental Mindoro using a combination of overhead transmission lines and submarine cables. While designed for 500 kV, the system will be initially energized at 230 kV under Stage 1 to supply Mindoro’s immediate power requirements.

Stage 2 will fully energize the interconnection to 500 kV, extend the backbone to Magsaysay, Occidental Mindoro, and expand substation capacity to support new large-scale generation projects, particularly offshore wind.

The ERC said the project will end Mindoro’s operation as an isolated or missionary grid and is expected to eliminate the island’s reliance on the Universal Charge–Missionary Electrification (UC-ME) once it shifts to integrated grid operations.

Currently, Mindoro’s power supply is largely dependent on diesel and bunker-fired plants operated by NPC-SPUG and new power providers. As of December 2024, dependable generating capacity stood at 107.44 megawatts, while demand continues to rise. Peak demand reached 92.72 MW in 2022, with further growth projected through 2030.

The Commission also cited the role of the interconnection in supporting renewable energy development, noting Mindoro’s significant wind and offshore wind potential and the eventual ability of the island to export surplus power to Luzon.

The Department of Energy has certified the Batangas–Mindoro interconnection as an Energy Project of National Significance (EPNS).

NGCP’s total applied project cost, including the permit fee, was placed at P90.66 billion, while the ERC emphasized that the approved project cost remains subject to optimization and verification during the next transmission rate reset process.

What impact do you see this project having on power rates, diesel dependence, and offshore wind development in Mindoro and nearby regions? Share your views.

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