EPI unit allots P1.2 billion for grid integration of solar farm

MANILA, Philippines — A subsidiary of Emerging Power Inc. (EPI) has set aside P1.19 billion to integrate its 145-megawatt-peak solar farm in Zambales into the Luzon grid.

In a filing with the Energy Regulatory Commission, EPI’s Northern Palawan Power Generation Corp. (NPPGC) has proposed to build, own and operate dedicated point-to-point limited transmission facilities.

The connection asset will allow NPPGC to connect its Cawag solar power project to the 230-kiloVolt Subic substation owned and operated by transmission operator National Grid Corp. of the Philippines.

“The proposed connection of the project is the most viable and reasonable interconnection scheme considered, recommended, and evaluated by NPPGC that will enable it to dispatch the capacity of the project when the need arises,” the company said.

Under the Electric Power Industry Reform Act, generation companies may develop and operate dedicated transmission facilities, provided that such assets are “required only for the purpose of connecting to the transmission system.”

The construction of the transmission facility is a prerequisite for the testing and commissioning as well as the commercial operations of the solar facility.

The initial phase of the project is scheduled for completion by June this year, while the second phase is targeted to be finished in October.

NPPGC said the development of the solar farm and its integration into the grid is expected to help meet the need for additional renewable energy (RE) capacity amid growing power demand.

Under the Philippine energy scenario, the government is seeing peak demand growing by around 5.3 percent annually until 2028.

By 2050, the country’s peak demand is projected to reach 68.5 gigawatts, a threefold increase from the 16.6 GW recorded in 2022.

“It is in the interest of the government to help RE developers such as NPPGC to achieve commerciality and commence operations at the soonest practicable time. With this, NPPGC will address the growing demand for power in the Philippines,” it said.

NPPGC parent EPI is the RE arm of natural resources development firm Nickel Asia Corp. of the Zamora family.

The company’s portfolio includes RE service contracts across solar, wind and geothermal, which are at various stages of development.