The Energy Regulatory Commission (ERC) has given the green light to a P90 billion transmission project that will connect Mindoro Island to the main Luzon power grid, a move expected to improve electricity reliability and unlock renewable energy development.

The National Grid Corporation of the Philippines’ (NGCP) Batangas-Mindoro 500-kilovolt Interconnection and Backbone Project is an upgraded version of an earlier proposal the ERC had approved in 2022 but which was never executed.

The ERC said it approved the revised project based on evidence that it would benefit consumers through more reliable and efficient power supply as required under the Electric Power Industry Reform Act (EPIRA) of 2001.

Mindoro has historically been plagued with insufficient generation capacity relative to rising demand.

The island’s current power system relies on 69-kilovolt transmission lines operated by utilities including the Small Power Utilities Group, leaving it vulnerable to supply disruptions.

The new 500-kilovolt interconnection will give Mindoro access to more competitive power sources available on the Luzon grid, addressing persistent supply constraints.

The infrastructure will also catalyze renewable energy development.

ERC said the project would facilitate offshore wind projects, with Mindoro identified as having huge wind potential.

Officials expect the interconnection to support development of approximately 343 megawatts of solar capacity and 710 megawatts of wind generation in competitive renewable energy zones on the island, providing power companies with a wider market.

NGCP will execute the project in two phases.

The first phase, targeted for completion by September 2027 at a cost of around P45.6 billion, involves constructing overhead transmission lines and submarine cables from a substation in Batangas to a proposed facility in Calapan, Oriental Mindoro.

The transmission line, designed for 500 kilovolts, will initially operate at 230 kilovolts.

The second phase, expected to conclude by the end of 2030 at an estimated cost of P45 billion, entails full energization of the transmission lines to their design capacity and completion of the Calapan substation.

The project will be extended southward to serve Occidental Mindoro through additional transmission lines and substations.

Removal of Mindoro from the subsidy rolls under the government’s universal charge for missionary electrification program is projected to save consumers P128.75 billion between 2027 and 2042.

This subsidy reimburses the costs of serving off-grid areas. The savings translate to an estimated reduction of P0.051 per kilowatt-hour for consumers in Luzon, Visayas and Mindanao, the ERC said.