San Miguel unit gets ERC nod for P1.7-B transmission project

SAN MIGUEL Global Power Holdings Corp. (SMGP), the power generation arm of San Miguel Corp. (SMC), has secured regulatory approval to build a P1.7-billion dedicated transmission facility to connect the expansion of its Masinloc coal-fired power plant to the Luzon grid.

In a 19-page decision, the Energy Regulatory Commission (ERC) authorized Masinloc Power Co. Ltd. (MPCL) to develop, own, and operate dedicated point-to-point transmission facilities that will connect the expansion of its 700-megawatt (MW) coal-fired power plant in Zambales to the transmission network.

MPCL, a subsidiary of SMGP, owns and operates the Masinloc Power Plant.

The company is expanding the facility by constructing two additional generating units with a combined capacity of 700 MW, or 350 MW each. The two units are scheduled for completion between 2025 and 2026.

Under the approved connection scheme, the expanded coal-fired power plant will initially connect to the Castillejos Substation of the National Grid Corp. of the Philippines (NGCP) before shifting to the Palauig Substation as its permanent connection.

“To commence commercial operations, the Masinloc [coal-fired power plant] must first be connected to the grid. Accordingly, the development of the subject facilities is necessary to enable the said connection and allow MPCL to deliver power to the system,” the ERC said.

Last year, SMGP said it had earmarked about P87.1 billion in capital expenditures for three baseload power projects.

The budget includes P15.8 billion for the Masinloc expansion, P34.4 billion for a 600-MW coal-fired power plant in Mariveles, Bataan, and P36.9 billion for a 1,320-MW gas-fired power plant in Batangas.

SMGP has a diversified power generation portfolio that includes natural gas, coal, renewable energy, such as hydropower, and battery energy storage systems. The company also operates a retail electricity supply business and has investments in electricity distribution. — Sheldeen Joy Talavera