ERC OKs P13-B Milaor 500-kV substation project
The Energy Regulatory Commission (ERC) has approved the National Grid Corporation of the Philippines’ (NGCP) proposed P13-billion Milaor 500-kilovolt (kV) Substation Project in Camarines Sur.
This clears the way for a major transmission facility intended to support the integration of large-scale offshore wind power projects in southern Luzon.
The ERC said the project is a necessary component of the country’s transmission expansion plans. This, particularly as the government pushes for the operationalization of offshore wind power plants by 2028.
The regulator noted that the Milaor substation will serve as a critical connection point for planned offshore wind developments in Camarines Sur. It will also help ensure grid readiness for the entry of new renewable energy capacity.
The ERC approved the project subject to optimization during NGCP’s next regulatory reset. It added that only verified and prudent expenses will be considered for cost recovery.
Also, the Commission said that the approval must not result in double recovery of costs. This, particularly since some of the substation components are aligned with those previously approved under the Luzon-Visayas HVDC Bipolar Operation Project.
NGCP is directed to complete the installation and commissioning of two 1,000-megavolt-ampere power transformers at the Milaor substation, in phases.
The first transformer must be operational by 2027 to accommodate early offshore wind projects. The second transformer must be completed no later than Aug. 31, 2030.
The ERC warned that failure to meet these timelines may result in administrative penalties under existing laws and regulations.
The regulator said the project would benefit electricity consumers by ensuring a more reliable and efficient power supply. This is especially so as renewable energy capacity expands.
