The National Grid Corporation of the Philippines (NGCP), the grid operator, is advancing multiple projects to expand its transmission network, postponing regulatory approval for cost recovery to a later date.
Amid the increasing energy demand, the NGCP announced yesterday that it is fully prepared to manage additional generation capacity through its ongoing and recently completed transmission projects.
Expansion Plans to Address Energy Demand
Currently, it is working on the Tuy-Dasmariñas 500 kilovolt (kV) transmission line project, which will provide a transmission capacity of 2,400 megawatts (MW) at its initial 230 kV energization stage.
The Cebu-Bohol Interconnection project aims to supply Bohol with a 1,200-MW total interconnection capacity to Cebu Island. It is also the location for the P52-billion Mindanao-Visayas Interconnection Project (MVIP).
In January, the MVIP became fully operational, enabling the transfer of up to 450 MW of power between Visayas and Mindanao. The existing transmission lines and submarine cables could increase the capacity by 450 MW.
Additionally, the NGCP has extended the Mindanao 230 kV transmission backbone, providing an extra transfer capacity of 2,200 MW in the north and 2,400 MW in the south of the region.
The NGCP has recently applied to the Energy Regulatory Commission (ERC) for approval of the 500 kV backbone looping and extensions in Luzon and the Leyte-Cebu Interconnection Lines 3 and 4 as part of its ongoing grid expansion efforts.
Infrastructure Improvements for Increased Capacity
“Aside from strengthening our transmission network, the recently completed backbone projects allow NGCP to create room for additional generation capacity, whether from conventional or renewable power sources,” it said.
The transmission operator successfully activated the P20.9 billion Mariveles-Hermosa-San Jose 500-kV facility last Sunday, and the P67 billion Cebu-Negros-Panay (CNP) 230-kV backbone project was activated in April.
The Mariveles-Hermosa-San Jose transmission line, with an overall capacity of 8,000 MW, is designed to handle large-scale power generation from both incoming and existing power plants in Bataan and Zambales.
The CNP increases the overhead transmission capacity by 2,400 MW and the submarine cable capacity by 800 MW, improving the interconnections among the islands.
The NGCP invested P87.9 billion in these two projects, but the ERC only approved the recovery of P201.78 million, which is less than one percent of the total project costs. Nevertheless, the company moved forward with implementing these critical projects, as the Department of Energy (DOE) anticipated doubling the country’s power demand over the next 12 years.
Impact of Network Expansion on Energy Supply
“With expedited project approvals and proper support from the ERC and the DOE, the NGCP can do more and is ready to deliver more available power supply to the Filipino people,” it said.
The NGCP has also reiterated its call for a comprehensive government approach to tackle the increasing power demand driven by the economy and the ongoing capacity decline of aging power plants.
“Objective and informed policy regulation and a fair, investor-friendly recovery process for implemented power transmission projects must also be given priority,” it added.