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Philippines DOE to allow generation companies to build transmission infrastructure
- 17 hours ago (2025-10-15)
- David Flin
The Philippine Department of Energy (DOE) has proposed a new policy to allow power generation companies to finance and construct transmission infrastructure to accelerate the completion and delivery of power projects in the country.
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According to the DOE, recurring systemic constraints in the national transmission grid have continued to delay dispatch of new generation projects, especially from renewable energy developers.
The DOE said: “Even with a generation company constructing its own dedicated P2P connection facility, the surrounding transmission grid may still have inadequate capacity or technical constraints, rendering the connection futile and thereby delaying the commercial operation and delivery of the power project.”
The DOE is drafting a ruling that would allow power generators to finance, build, and install new or extended transmission lines, substations, and related facilities beyond their P2P connections. Under the proposed policy, generation companies would be allowed to recover actual costs under agreements with the National Grid Corporation of the Philippines (NGCP), which would retain oversight of project implementation, financing arrangements, and the eventual turnover of facilities.