Tuesday, January 25, 2011

Cebu Energy, NGCP projects OKd

By Amy R. Remo
Philippine Daily Inquirer
First Posted 22:30:00 01/25/2011


MANILA, Philippines—Cebu Energy Development Corp., an affiliate of the Metrobank Group, and National Grid Corp. of the Philippines have been allowed by government regulators to proceed with their transmission projects in the province of Cebu to serve the requirements of the 246-megawatt thermal power plant in Toledo City.
In its decision, the Energy Regulatory Commission said it was convinced of the necessity of the transmission facility for the generation plant to adequately transmit power to the Visayas grid.
“The absence of reliable supply of electricity will discourage the inflow of private capital which could adversely affect the economic and livelihood development in the Visayas,” the ERC said.
The P27.79 million worth of transmission projects would ensure safe and reliable transmission of power generated by the plant owned by CEDC to the grid and would bring about real-time monitoring of the system’s operation.
CEDC targets to connect the power generation facility to the Visayas grid through the 138-kilovolt Talavera Substation.
The 246-MW power plant is being constructed by CEDC and is expected to start full commercial operations by next month. The first two units of the power plant have been completed and have started their test runs last year.
The CEDC power plant is deemed crucial in providing the much-needed additional supply of power in the Visayas grid.
Power supply in the Visayas has been tight since 2008. Dependable capacity in the grid at that time was only 1,590 MW while actual requirement is 1,591 MW.
NGCP and CEDC have signed a memorandum of agreement for the construction and completion of the transmission facilities.
Under the agreement, CEDC will cover the financing, construction, operation and maintenance of the connection facilities or the double-circuit 138 kV line and power circuit breakers and accessories at Talavera substation.
CEDC will likewise finance and implement the installation of all the necessary equipment at the Talavera substation and the generation plant, and the communication link between the two facilities.
For its part, NGCP will provide the design and specification documents of the project and facilitate the reimbursement to CEDC of the cost incurred in the implementation of the transmission assets in the amount to be approved by the ERC.
The MOA also covers the rehabilitation of tower NS-38 of the Naga-Sigpit 138-kV transmission line.

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