The Energy Regulatory Commission (ERC) has approved the P51.69-million Visayas-Mindanao interconnection project in principle.
National Grid Corp. of the Philippines (NGCP) has been given a provisional authority for the project, which will connect the Visayas and Mindanao grids via Cebu and Zamboanga and is expected to be completed in 46 months.
In a statement on Tuesday, the ERC said that it approved the initiative on the premise that it “would be subject to optimization based on its actual use and/or implementation during the reset process for the next regulatory period.”
ERC Officer-in-Charge Alfredo Non said the project help address the problem of insufficient power supplies.
“The provisional approval granted to NGCP to implement the Visayas-Mindanao Interconnection Project will enable power supply importations among the Luzon, Visayas, and Mindanao grids. For instance, the deficiency of supply in Visayas may be supplied by importing power from Luzon or Mindanao,” Non added.
The ERC said interconnection supported the goal of a single national grid.
“The project also aims to reinforce the operation of the electricity market by maximizing the use of available energy resources and additional generation capacities in Visayas and Mindanao which include the renewable energy resources,” the ERC added.