The National Grid Corporation of the Philippines (NGCP) will build a new transmission project in Mindanao to accommodate power from a new coal-fired power plant, the Manila Bulletin reported. According to the company, the significant increase in power supplied to the grid requires more infrastructure to supply the energy to customers.

The Balo-i-Kauswagan-Aurora 230 Kilovolt Transmission Line Project is estimated to cost more than $48 million and will be able to add 600 megawatts of energy to the grid from GN Power Kauswagan Ltd. Co.'s coal-generated power facility. GN Power has established a power purchase agreement to supply the energy to 20 cooperatives that operate under the Association of Mindanao Rural Electric Cooperatives.

The coal-fired plant is planned in response to the country's looming power shortages, the Manila Standard Today reported. The plant will be located in Kauswagan, Lanao de Norte, and built in two phases. The first phase will be finished in 2017 and add 450 MW of power to the grid and the second phase will contribute another 150 MW when it is completed in 2018.

NGCP stated the new transmission line and coal plant will supply power to the Zamboanga Peninsula, which is crucial given the current lack of power generation in the area, according to the Manila Bulletin.

If all regulatory approvals are awarded by the Philippines' Energy Regulatory Commission then the transmission line project should be completed by 2016, prior to the commissioning of the coal facility.

NGCP is also planning a second project - a 230 kV transmission line from the Kauswagan substation to the Aurora substation, according to Manila Bulletin. The company expects to finish this transmission line by 2019.