NGCP allots P100 billion for new transmission lines

MANILA, Philippines – The National Grid Corp. of the Philippines (NGCP) will be spending nearly P100 billion in the next 10 years for the establishment of new transmission lines and substations and the expansion of existing facilities nationwide.

Massive capital expenditures will allow the NGCP to provide a more efficient power transmission amid increasing generation capacity in the areas involved, an official said.

Under the Transmission Development Plan 2011-2020, the NGCP plans to spend P95.8 to 102.8 billion in six major transmission line expansion projects, said Giovanni Galang, deputy department manager of the NGCP’s Transmission Planning department.

Most of the projects will be completed in the next five to eight years, Galang said.

“No matter how many power plants there are, the capacity will be stranded if transmission lines cannot handle it,” Galang said.

Four of the six major investments will be in Luzon.

First is the 178-kilometer (km.) Northern Luzon 230 kilovolts (kv) backbone, which will require an investment of P3.6 billion.

Galang said this is under study and the project is targeted for completion in 2015.

It will support the wind power generation potential of northern Luzon and to increase the reliability of the transmission lines.

The NGCP said that between 2011 and 2020, Luzon will have an additional power generation capacity of 4,188 megawatts (MW), which includes the 82-MW Burgos Wind project.

The second project is the P9.2-billion Western Luzon 500 kv backbone project that is still under study, Galang said.

This is in anticipation of additional power generation capacity in Bataan and Pangasinan, NGCP said.

For Metro Manila, NGCP is conducting a study on the P14-billion, 500 kv Metro Manila backbone, Galang said.

The Batangas-Mindoro Interconnection, for its part, is now in the approval process. NGCP targets to complete the P11-billion interconnection in 2014.

For Visayas and Mindanao, NGCP is looking at an interconnection and backbone project in the next few years.

Specifically, Galang said the NGCP is consulting stakeholders for the Cebu-Negros-Panay 230 kv backbone that consist of 131 kms. of overhead transmission lines and 50 km. of submarine lines with a total capital requirement of P36 billion.

Another option is the 48-km. transmission line expansion in Negros and Panay worth P3 billion, Galang said.

The NGCP is also studying two options to connect Visayas and Mindanao.

For one, Galang said the Leyte-Mindanao Interconnection will cost P22 billion. An alternative, the Negros-Mindanao Interconnection, is worth P29 billion.

NGCP operates and maintains the National Transmission Corp.’s transmission business.

The Transmission Development Plan wants to improve power transmission nationwide through the installation of new system reinforcements, development of alternative transmission corridors, prevention of heavy loading and upgrade of existing facilities for the NGCP to be the strongest power grid in Southeast Asia.