NGCP Pushes More Island Interconnection

Manila Bulletin
By MYRNA M. VELASCO
October 12, 2011, 1:34am


MANILA, Philippines — Transmission concessionaire National Grid Corporation of the Philippines (NGCP) is setting its sight on interconnecting the country’s major islands to the main grid, primarily those which are still being served on their electricity needs by the National Power Corporation’s Small Power Utilities Group.


In a lunch meeting with Manila Bulletin officials and editorial team, NGCP president and chief executive officer Henry T. Sy Jr. noted that by connecting the islands with the major grids, end-users from these areas would be able to benefit from more cost-competitive electricity rates.


The key islands being targeted for interconnection are Palawan, Mindoro, Romblon and Masbate, among others. Of the areas identified, it is Mindoro’s interconnection via the Batangas 230-kilovolt line that has already been filed for approval with the Energy Regulatory Commission.


As far as the company’s upcoming projects are concerned, Sy noted “we are bullish because we believe we can lower down the cost of electricity for consumers.”


The off-grid islands are currently being catered to by ‘more expensive gensets,’ as based on the actual cost of generation which is at the range of P12 to P16 per kWh. While the rates in NPC-SPUG areas are subsidized, the universal charge which accounts for the difference is being passed on to all electricity consumers.


In the 2011 Transmission Development Plan (TDP) unveiled by NGCP, it listed major challenges and planning considerations that it factored in for the line-up of projects that it will implement in its current regulatory reset covering the periods from 2011 to 2015.


These chiefly considered the capacity additions being planned across grids as well as the much-anticipated integration of renewable energy into the system. “Due to the entry of new power plants, changes in new technology and market demands, some new projects will be lined up in the 2011 TDP that may not be consistent with the third regulatory period final determination,” NGCP has qualified.


The company further indicated that “a unified national transmission network is not yet in place, also transmission capacity is inadequate to support a unified grid.”


It also emphasized that “a stronger transmission network is needed to support competitive retail electricity market.”


The reality of the transmission network at present, Sy noted, is that “some parts of the grid are not yet compliant with N-1 criterion,” meaning if the transmission line is down, there is no back-up that can transmit power to load customers.


NGCP similarly stressed that “the aggressive timeline of new power plants, particularly RE, market demands, and change in technology require additional primary and secondary system enforcements.”