MANILA, Philippines—The Leyte-Mindanao Interconnection Project may finally push through as the Department of Energy and National Grid Corp. of the Philippines have agreed that the multi-billion-peso project will help secure the country’s power supply.
“If it can be done, we should do it. In the scheme of things in the future, you want the flexibility to be able to move power to wherever you need it,” said Energy Secretary Jose Rene D. Almendras in an interview.
According to Almendras, a Japanese firm has expressed interest in constructing the LMIP, which is estimated to cost P18 billion. It was not clear though whether the Japanese company, which he declined to identify, would partner with NGCP.
The interconnection project involves a 250-kilovolt high-voltage density cable bipolar link with a total transfer capacity of 500 megawatts (MW), as well as a 455-kilometer long overhead line and 23 km submarine cable. It would start at the Ormoc Converter Station in Leyte and end at the Kirahon Converter station in Northcentral Mindanao via Southern Leyte and Northeastern Mindanao.
As the private operator of the country’s national transmission network, NGCP is tasked to undertake projects under the grid development plan.
But it was also NGCP who earlier told Almendras that the LMIP—which is meant to complete the country’s grid loop—was not feasible due to several technical issues that may hamper the construction.
It has since decided to take a second look at the project.
“Right now, we’re just going to study (the project). I have to discuss this with the Chinese partners because somehow we have different points of view (about the LMIP). Only the (feasibility) study can resolve that, but study takes money also,” said NGCP president Henry Sy Jr.
NGCP spokesperson Cynthia Alabanza added that the feasibility study was necessary to determine whether it will be in the best interest of the grid and consumers to construct the LMIP, which may entail additional costs for consumers.
“Of course we want to stay ahead of the game. We want to build that in time to accommodate the actual market, when more supply becomes available,” Alabanza said.
When completed, and approved by the Energy Regulatory Commission, the Leyte-MIndanao interconnection will allow the export of available power from Leyte to Mindanao and vice-versa.
“Private investors will be encouraged to build the necessary baseload power plants since they will be able to export available energy to islands outside of Mindanao,” the NGCP explained.
This project was also envisioned to jumpstart the wholesale electricity spot market (WESM) for Mindanao, which remains in the pipeline.
The LMIP was among the projects considered as “crucial” by the National Transmission Corp. (Transco) prior to its privatization and the takeover by the NGCP.
“If it can be done, we should do it. In the scheme of things in the future, you want the flexibility to be able to move power to wherever you need it,” said Energy Secretary Jose Rene D. Almendras in an interview.
According to Almendras, a Japanese firm has expressed interest in constructing the LMIP, which is estimated to cost P18 billion. It was not clear though whether the Japanese company, which he declined to identify, would partner with NGCP.
The interconnection project involves a 250-kilovolt high-voltage density cable bipolar link with a total transfer capacity of 500 megawatts (MW), as well as a 455-kilometer long overhead line and 23 km submarine cable. It would start at the Ormoc Converter Station in Leyte and end at the Kirahon Converter station in Northcentral Mindanao via Southern Leyte and Northeastern Mindanao.
As the private operator of the country’s national transmission network, NGCP is tasked to undertake projects under the grid development plan.
But it was also NGCP who earlier told Almendras that the LMIP—which is meant to complete the country’s grid loop—was not feasible due to several technical issues that may hamper the construction.
It has since decided to take a second look at the project.
“Right now, we’re just going to study (the project). I have to discuss this with the Chinese partners because somehow we have different points of view (about the LMIP). Only the (feasibility) study can resolve that, but study takes money also,” said NGCP president Henry Sy Jr.
NGCP spokesperson Cynthia Alabanza added that the feasibility study was necessary to determine whether it will be in the best interest of the grid and consumers to construct the LMIP, which may entail additional costs for consumers.
“Of course we want to stay ahead of the game. We want to build that in time to accommodate the actual market, when more supply becomes available,” Alabanza said.
When completed, and approved by the Energy Regulatory Commission, the Leyte-MIndanao interconnection will allow the export of available power from Leyte to Mindanao and vice-versa.
“Private investors will be encouraged to build the necessary baseload power plants since they will be able to export available energy to islands outside of Mindanao,” the NGCP explained.
This project was also envisioned to jumpstart the wholesale electricity spot market (WESM) for Mindanao, which remains in the pipeline.
The LMIP was among the projects considered as “crucial” by the National Transmission Corp. (Transco) prior to its privatization and the takeover by the NGCP.
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