ERC approves NGCP's P5-billion transmission projects

MANILA, Philippines - The Energy Regulatory Commission (ERC) has given the go-signal for National Grid Corporation of the Philippines (NGCP), the operator of the country’s power transmission highway, to implement P5 billion worth of new projects.

NGCP took over the operations and maintenance of the nationwide transmission network, which consists of 20,236 circuit kilometers (combined length of transmission and sub-transmission) and a total capacity of 24,607 megavolt amperes, from the government on Jan. 15, 2009.

The consortium, composed of the Henry Sy Jr.-led One Taipan Holdings, Calaca High Power Corp. controlled by Robert Coyuito and State Grid Corp of China, won the bidding for the 25-year concession to run and manage the country’s transmission highway for $3.95 billion.

The ERC allowed NGCP to proceed with its P2.089-billion Kalayaan-New Makban transmission upgrading project and the P1.749-billion New Antipolo substation project.

The Kalayaan-New Makban upgrading project will involve the construction of a new 230 kilovolt double circuit transmission line, expansion of substations and installation of protection, control and communication equipment.

This project is intended to accommodate the full dispatch of existing baseload power plants and the commissioning of future power generation projects in South Luzon.

Meanwhile, the Antipolo substation project involves the construction of a new 230/115-kV substation which would help sustain increasing loads in the Metro Manila area.

Aside from these, the ERC also approved NGCP’s San Esteban-Laoag 230 kV transmission project.

This project will install the connection facility for wind projects, namely the 86-megawatt wind project of Energy Development Corp. and the 82-MW wind project of Northern Luzon UPC Asia Corp.

The project, with an estimated cost of P456 million, will involve the construction of 500 meters of 115-kV transmission line and expansion of the existing Laoag substation and the installation of control and protection equipment at the Laoag, Curimao, Bantay and San Esteban substations.

Included in the projects is the P1.1-billion Tayabas substation expansion project which involves the installation of additional 600 MVA, 500/230-kV transformer protection at the Tayabas substation.

It is intended to handle the deliver of power from the 735-MW Pagbilao coal-fired power plant and the geothermal power plants in Bicol and Leyte.

NGCP also has a pending petition with the ERC for the approval of its P267.98 million Visayas substation reliability project 1 (Compostela substation expansion project) expected to augment the current substation capacity of the Compostela substation, hence improving the reliability of the Visayas grid.

The transmission firm also sought approval for the Dasmarinas EHV substation project, which involves the construction of a 600-MVA additional substation capacity.

The project is intended to maintain the provision for “single outage or N-1 contingency during the maximum dispatch of the 1,200-MW Ilijan natural gas plants, 600-MW Quezon Power Philippines coal plant and the Pagbilao coal-fired power plant.

NGCP sought for a provisional authority not only to implement the project but also to recover the cost of the transmission projects from the consumers.

Earlier, NGCP committed to spend about P10 billion for the completion of its priority transmission line projects lined up for the year.