Business Mirror
THURSDAY, 03 NOVEMBER 2011 19:21 PAUL ANTHONY A. ISLA / REPORTER
BEIJING, China—Having a balanced generation mix is needed in ensuring a stable power supply at a time when sources of renewable energy is being built up.
Similar to the Philippines, State Grid Corp. of China (SGCC) officials said China is also building its renewable-energy portfolio.
They, however, pointed out that China now needs to tap natural gas and hydropower capacities to balance its power supply grid romping up its renewable-energy portfolio like wind.
SGCC official said they learned from an experience of power supply instability this year in the northwest part of China. “Renewable-energy had an impact on the quality of the network, particularly if the capacity of renewable energy sources is large,” they added.
China’s renewable-energy law mandates all renewable energy-based power plants be accepted in the grid.
SGCC officials added that they continue to share modern operation and maintenance, planning and engineering, and system operations strategies with its Filipino counterparts to improve the power transmission network.
SGCC, a technical partner in National Grid Corp. of the Philippines (NGCP), is considered a world leader in power network construction, operation, management and core technology research and development and is internationally known for its pioneering initiatives and vast experience in managing ultra-high voltage power grid systems.
The executive pointed out that they are working hard in the field of standard system research and technical specifications, as they recognize the need to standardize power transmission technology.
The Chinese company has turned over four smart grid technical documents to NGCP as part its partnership on smart grid technology in February this year.
The documents included the framework and road map for strong and smart grid standards; technical guide for smart substation; technical rule for connecting wind farms to the power grid; and the technical rule for connecting photovoltaic power stations to the power grid.
SGCC—the largest public utility in the world—has a customer base of over 1 billion people in mainland China. Its core business is the construction and operation of electric power networks covering 26 provinces, autonomous regions and municipalities that represent 88 percent of China’s territory.
In 2010 total assets were valued at $321.1 billion while revenues amounted to $233.7 billion. SGCC was ranked 7th in the Fortune Global 500 in 2011.
In 2007 SGCC joined a Chinese-Philippine consortium and won the bid for a 25-year franchise to operate the Philippine national transmission network, and was given a franchise by Congress in 2008.
In 2009 the NGCP commenced its operations as managed by SGCC and its Filipino partners Monte Oro Grid Resources Corp. and Calaca High Power Corp.
Since 2009 NGCP’s operations boosted SGCC’s efforts to develop its overseas investment. In a gathering of Chinese and Filipino investors organized by the Bangko Sentral ng Pilipinas early this year, Du Zhigang, SGCC Vice President and NGCP Chairman Du Zhigang said they have implemented a strategy of globalization and that they are going abroad to explore international business development.
He said SGCC considers its business development in the Philippines as a prime example of its continuing effort to enhance its international competence. SGCC’s business venture in NGCP remains the largest investment of China in the Philippines.
Since NGCP and SGCC started working together, many changes have been implemented in terms of systematically improving operations and management to build a stronger power grid. The operational performance of NGCP, and the power grid it operates, is considered stable. The quality and reliability of power supply has been developed and upgraded.
Aside from major engineering projects, 46 projects for better operation and maintenance were also carried out to improve the facilities.
Most notable among the recently completed projects is the replacement of the 500-kV transformers in San Jose Substation in Bulacan.
NGCP replaced 12 units of transformers, thereby resolving the North and South Luzon power congestion that limited the transmission of Metro Manila’s power supply requirements.
With this development, NGCP’s System Operation was also able to dispatch the cheaper generation supply from the North, which resulted to lower electricity rates.
In 2009 SGCC also helped initiate the operation of unmanned substations which are equipped with supervisory control and data acquisition and other advanced computer technology for increased system reliability and efficiency.
Two (unmanned substations are now operational in Mactan and Mandaue in the Visayas grid. There are ongoing plans for unmanned substations in Luzon that will have upgraded microcomputer-based substation controllers. These unmanned substations are monitored by the main substations, which are still handled by the NGCP’s technical personnel.
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