MBC urges Marcos admin to adopt BOT model for power grid projects

The Makati Business Club (MBC) urged the Marcos administration to adopt a build-operate-transfer (BOT) model for power grid projects to facilitate the integration of renewable energy sources.

In a statement on Thursday, April 3, MBC recommended issuing an executive order to allow BOT grid projects, enabling third-party investors to construct necessary transmission infrastructure.

MBC emphasized that improving grid infrastructure is crucial for achieving reliable and affordable renewable energy as outlined in the Philippine Energy Plan, aiming for a 35% RE share by 2030 and 50% by 2040.

The business group added that this will help accelerate grid development, addressing present bottlenecks and challenges in the energy sector, with investments outpacing grid spending since 2018.

Undersecretary Rowena Cristina L. Guevara of the Department of Energy confirmed a BOT scheme has been proposed to assist NGCP in constructing transmission assets needed for renewable energy projects.

NGCP would operate and manage these assets after their construction, ensuring timely integration of new power generation into the grid.