THE NATIONAL GRID Corp. of the Philippines (NGCP), the country’s sole grid operator, is aiming to finish P18.5 billion worth of transmission projects this year to improve delivery of electricity amid increasing demand.
In a statement on Thursday, NGCP said it is set to energize seven transmission projects following the completion of several critical project components including facility upgrades, expansion, and improvements for grid stability and reliability.
Among the projects set to come online is the P8.1-billion Tuy 500/230-kilovolt (kV) Substation Stage 1 in Batangas, which will accommodate the connection of a coal-fired power plant. It will also allow dispatch of bulk generation capacity additions in Batangas.
The NGCP is also planning to complete the P4.2-billion Nabas-Caticlan-Boracay 138-kV transmission line in Aklan, which will provide reliable power to customers in the Boracay and Caticlan areas.
The company’s P2.4-billion Tuguegarao-Lal-lo (Magapit) 230-kV transmission in Cagayan is also on track for completion to address the imminent overloading of the existing line due to the forecasted load growth in the northern part of Cagayan province.
NGCP also seeks to activate the P1.9-billion Amlan-Dumaguete 138-kV transmission line in Negros Oriental this year to cater to growing demand and provide operational flexibility and reliability to customers in Southern Negros.
To address overloading during an outage, the grid operator is set to complete the P1.02-billion Stage 2 of the Visayas Substation Reliability project.
The company is also expected to energize the P757.98-million Tacurong-Kalamansig 69-kV transmission line in Sultan Kudarat. It is also completing a P123.84-million project to relocate steel poles along the Hermosa-Duhat 230-kV transmission line in Bataan.
“These will address economic drivers such as load growth, system reliability and security. power quality and technology, entry of new generating plants (both renewable and nonrenewable), as well as to complement major projects such as power grid backbones and island interconnections,” NGCP said.
Last year, NGCP completed the upgrade of 14 substations to enhance grid reliability and stability. It also conducted voltage improvement initiatives in its Tigaon, Malvar, Baybay Load-end Station, Sta. Barbara, and Zamboanga substations.
The grid operator said it is on track to finish the pipeline of projects this year despite persistent challenges in right-of-way and permitting.
“We continue to seek the support of government agencies and LGUs (local government units) by ensuring the expedited release of permits related to our projects. Their assistance is vital to ensuring unhampered project implementation,” NGCP Assistant Vice-President Cynthia P. Alabanza said at a briefing on Thursday.
NGCP has appealed for support from the Department of Energy, other government agencies, and LGUs for the swift approval and release of permits for the implementation of critical transmission projects.
Under a congressionally granted 50-year franchise, NGCP has the right to operate and maintain the transmission system and related facilities, and to exercise the right of eminent domain as needed to construct, expand, maintain, and operate the transmission system.
The Energy Regulatory Commission (ERC) recently issued its decision on NGCP’s rate reset for the fifth regulatory period spanning 2023 to 2027, setting an annual revenue requirement of P374.98 billion.
The figure, however, was lower than the P442.6 billion sought by NGCP.
Asked for comment, Ms. Alabanza said the company is studying ERC’s decision to assess the items approved by the commission.
HIGHER BILLSMeanwhile, power consumers will be charged higher transmission rates in their February electricity bills, reflecting the increase in the transmission wheeling rates and the cost of ancillary services.
The overall rate will increase by 13.55% to P1.5279 per kilowatt-hour (kWh) in the February bills from P1.3455 per kWh in the prior month, according to Julius Ryan D. Datingaling, NGCP head of business and regulatory development.
NGCP’s transmission wheeling rate, meanwhile, went up by 14.25% to P0.6921 per kWh. The transmission wheeling rate is the cost of delivering electricity from power generators to the distribution system.
Mr. Datingaling attributed the increase to lower energy consumption and the collection of under-recoveries of NGCP.
Ancillary services, or power reserves deployed by grid operators to support transmission of power and maintain reliable operations, rose by 12.81% month on month to P0.6736 per kWh. — Sheldeen Joy Talavera