Tuesday, July 31, 2018

Visayas-Mindanao power interconnection project to hike electricity transmission rates in 2020–NGCP


By Lenie Lectura - July 5, 2018

The P52-billion Mindanao-Visayas Interconnection Project (MVIP) of the National Grid Corp. of the Philippines (NGCP) may result in an upward adjustment in transmission rates.
“Depending on the regulatory reset by 2020, consumers might also notice the immediate effects of the project on their electricity bills, as its completion will result in a price increase of P0.03 per kilowatt-hour,” the NGCP said in a statement issued on Thursday.
The grid operator clarified, however, that the amount is still subject to regulatory approval.
While the final cost of the project has yet to be determined by the Energy Regulatory Commission (ERC), the NGCP has filed the estimated cost of the project to be at P52 billion.
“To date, the biggest part of the MVIP is right-of-way access and acquisition, which we expect to secure by the end of December 2018. Therefore, as early as now, we are reaching out to the public, especially all national and local government units, to collaborate with us for the successful completion of the MVIP to meet our goal of One Grid 2020,” the NGCP said.
The MVIP is NGCP’s latest project that aims to connect the Mindanao grid to the Visayas grid, which will ultimately lead to a single, unified national grid by the time of its completion in 2020.
“With a unified national grid, power transmission services in the country will be more reliable, as there will be less power interruptions nationwide due to the sharing of local energy resources. Reliable electricity transmission, in turn, could help boost investments, infrastructure development and commerce in the country,” NGCP said.
After five years of careful research and planning, the ERC has authorized the NGCP to start building the MVIP in 2017, with the project set to be completed by December 2020.
Currently, the country harnesses most of its electricity from the interconnected Luzon and Visayas grids, which was linked in 1998 and uses a high-voltage direct current  system with a 440-megawatt  capacity. Once the MVIP is complete by 2020, it will be using an HVDC system with a 450-MW initial capacity.
The MVIP will employ 184 circuit kilometers of submarine cables, plus 526 circuit kilometers of overhead wires, to connect Dapitan, Zamboanga del Norte, to Santander, Cebu, using HVDC submarine cables, which will transmit energy efficiently between the Visayas and Mindanao with minimal loss.
The completion of the MVIP will result in a more stable and secure supply of power in the country, and will maximize the use of available local energy resources.
“This will support the national government’s vision to interconnect the major power grids, which would then help improve the overall power-supply security of the country through the sharing of reserves,” the NGCP said. “This will also support the overall operations of the Philippine electricity market by allowing the optimization of all available energy sources, including the additional generation capacities that will be implemented in the Visayas and Mindanao,” it added.

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