First phase of Leyte-Mindanao power link OKd

Manila Standard Today
by Alena Mae S. Flores


The Energy Regulatory Commission approved the first phase of the proposed P24-billion Leyte-Mindanao interconnection project National Grid Corp. of the Philippines.


The approval is expected to pave the way for National Grid to conduct a P91-million study on the Leyte-Mindanao project, which includes the preparation of an updated feasibility review, a transmission route survey and hiring of consultancy services.


“The LMIP-Phase I will redound to the benefit of National Grid’s consumers in terms of continuous, reliable and efficient power supply,” ERC said.


The completion of the first phase is a precondition of the implementation of the second stage, which involves the physical construction of the proposed Leyte-Mindanao grid interconnection.


The second stage will connect the Visayas and Mindanao grids through 23 kilometers of submarine cables linking the Leyte and Surigao substations.


The ERC said the project would benefit the national power grid by optimizing the operations of hydropower plants in Mindanao, improving the reliability of the Mindanao power system and ensuring an exchange of energy during periods of shortfall or surplus between major power systems.


The project will also create more open, liberalized and competitive market through the Wholesale Electricity Spot Market in the future and create more investment opportunities in Mindanao in terms of additional power generation (due to a wider market) and industrial loads.


National Grid president Henry Sy Jr. earlier said the company, if necessary, would “advance” the funds needed to jumpstart the project.


“We will advance the needed amount on a staggered basis as soon as ERC approves our petition,” Sy said.


National Grid took over the management of the country’s national transmission network two years ago from the National Transmission Co., after winning a 50-year concession through a public bidding.