San Miguel power firm gets green light to link with NGCP

By Lenie Lectura - October 2, 2017

https://businessmirror.com.ph/san-miguel-power-firm-gets-green-light-to-link-with-ngcp/

SAN Miguel Consolidated Power Corp. (SMCPC) was given the green light to develop and own a dedicated point-to-point transmission facility to connect two units of its coal-power plant to the transmission facility of the National Grid Corp. of the Philippines (NGCP).

SMCPC, a unit of San Miguel Global Power Holdings Inc., will spend P46.8 million for the proposed transmission line, which is necessary so that power from SMCPC’s 2 x 150-megawatt (MW) coal plant in Malita, Davao del Sur can be transported to the 230-kiloVolt transmission facility of the NGCP.

“In order for SMCPC to comply with its contractual obligations with said distribution utilities [DUs], it is imperative that the power plant should be immediately connected to the transmission line of the NGCP,” SMCPC said. “Thus, the development of dedicated point-to-point limited transmission facilities is a prerequisite for the testing and commissioning and, eventually, the commercial operation of the plant.”

The ERC, in its 18-page decision, authorized SMCPC to develop and own dedicated point-to-point transmission facility to connect two units of SMCPC power plant to the Matanao-Toril and Toril-Davao 138-kV transmission line of the NGCP.

The decision stated that SMCPC will enter into an engineering, procurement and construction contract with Meralco Industrial Engineering Services Corp. (Miescor), which is known for its technical capability and track record.

SMCPC said there is an existing power-supply deficiency in Mindanao, resulting in frequent brownouts and intermittent power interruptions. Likewise, the DUs are heavily dependent on hydro plants that suffer from significant reduction of capacity during summer season coupled with the occurrence of the El Niño phenomenon.

“Thus, there is a need for these DUs to draw power from generation companies for the continuous supply of electricity to their consumers,” SMCPC said.

SMCPC’s power plant will supply the DUs and electric cooperatives in Agusan del Sur, Cotabato, Davao del Norte, Davao del Sur, Lanao del Norte, Misamis Oriental 1 Rural, Siargao, Surigao del Sur II, Zamboanga City and Zamboanga del Sur 1.