The Energy Regulatory Commission (ERC) has approved more than PHP 32 billion worth of new transmission infrastructure proposed by the National Grid Corporation of the Philippines (NGCP), with the goal of strengthening the country’s high-voltage backbone network in Luzon.

In the 1129th regular meeting held on May 14, 2025, the ERC gave its green light to two major components of NGCP’s capital expenditure application under ERC Case No. 2021-003 RC.

The first project, the Western Luzon 500kV Backbone (Stage 2), was approved at a cost of PHP 18.82 billion. The second, the Nagsaag-Santiago 500kV Transmission Line, was given approval with a budget of PHP 13.20 billion. Both projects are designed to improve power reliability and transmission capacity in northern and central Luzon.

While the ERC approved the budget allocations, it highlighted that the expenditures would still be subject to optimization and audit. These include verification of actual use and supporting documents such as receipts, to be conducted during the next regulatory reset in accordance with the Rules for Setting the Transmission Wheeling Rates (RTWR).

The Commission set completion deadlines for both projects:

• The Western Luzon 500kV Backbone must be completed by October 31, 2027
• The Nagsaag-Santiago line must be finished by November 30, 2030

In its resolution, the ERC also made sure to note its growing concerns about the “proliferation of projects in areas with poor accessibility to transmission facilities.” These projects, while intended to close infrastructure gaps, often require extensive and costly development in remote locations. The Commission has resolved to formally communicate these observations to the Department of Energy (DOE), potentially prompting a review of the planning process for new grid developments.

The approvals mark a huge step in NGCP’s ongoing effort to modernize and expand the country’s transmission network, which plays a vital role in supporting new energy generation and ensuring grid stability amidst ever-rising demand and the clean energy transition.

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