By Danessa Rivera (The
Philippine Star) | Updated September 21, 2016 - 12:00am
MANILA, Philippines – The Energy
Regulatory Commission (ERC) has cleared the construction of a critical
substation which would connect incoming power plants in Quezon province with a
total capacity of 2,720 megawatts (MW) to the Luzon grid.
The power regulator approved the
petition of the National Grid Corp. of the Philippines (NGCP) to construct the
Pagbilao EHV Substation aimed to address the overloading of the Tayabas 500/230
kv transformers and the fault level issue at Tayabas 230 kv Substation.
Estimated to cost P3.6 billion, the
facility will connect four incoming new capacities to the Luzon grid, namely
the 420-MW Pagbilao Coal-Fired Power Plant (CFPP) expansion, the 500-MW San
Buenaventura Power Ltd. Co. (SBPL), the 3x200-MW Energy World Liquefied Natural
Gas (LNG) Power Plant and the 1,200-MW Atimonan Coal-Fired Power Plant.
ERC chairman and CEO Jose Vicente
Salazar said the Pagbilao EHV Substation will be beneficial in terms of
ensuring the quality, reliability and integrity of the Luzon Grid.
“The approval of the NGCP’s Pagbilao
EHV Substation will enable it to adequately serve the needs and demands of
generation companies, distribution utilities and suppliers requiring
transmission service and ancillary services through the transmission system,”
he said.
The ERC said the project shall be
subject to optimization based on its actual need and/or implementation under
the performance based rate (PBR) system to determine the extent of the value
that will be included in the rate base of NGCP.
The power regulator also directed
NGCP to conduct competitive bidding for the purchase of major materials in the
implementation of the proposed projects, as well as to pay the corresponding
permit fee required.
Currently, Quezon hosts two of the
major power plants in the Luzon grid – the 735-MW Pagbilao and 460-MW Quezon
Power coal-fired power plants, which are connected to the Tayabas 2,400-MVA
230/500 Substation.
The Tayabas Substation is linked to
the 500 kv backbone stretches to Dasmariñas Substation in Cavite which serves
as a drawdown substation for the loads in the south of Metro Manila.
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