MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) has committed to spend P440 billion in capital expenditures from 2021 to 2033 to expand and strengthen the country’s transmission network.
In its preliminary prospectus for its share sale, Synergy Grid and Development Philippines Inc. said NGCP is committed to continuously invest in the nationwide transmission network to drive future growth.
Synergy Grid, as the holding company of the NGCP, owns 40.2 percent of the grid operator.
“For the 13-year period between 2021 and 2033, NGCP has committed to invest approximately P440 billion in capital expenditures across 211 projects,” it said.
This will support the expected growth in demand at an annual average growth rate of 6.23 percent for 2021 to 2025, 6.73 percent for 2026 to 2030, and 6.49 percent for 2031 to 2040, as detailed in the 2021 consultation draft of the Transmission Development Plan (TDP).
Meanwhile, NGCP projects peak demand to almost double from a peak national demand of 15,282 megawatts (MW) in 2020 to 28,631 MW by 2030, and almost quadruple by 2040 reaching 53,569 MW.
The TDP outlines NGCP’s plans to expand, develop, and monitor the grid throughout the country.
“As contained in the TDP 2021-2040, NGCP is tasked to implement the stage-by-stage grid looping configurations for resiliency and reliability, implement additional submarine cable links between islands to allow power exchange, and implement new substations and capacity expansion of existing substations to ensure the adequacy and reliability of supply for the continuously increasing demand,” it said.
SGP expects that NGCP’s robust project pipeline and the Mindanao-Visayas Interconnection Project (MVIP), which is a landmark project, to continue to expand its regulatory asset base.
Earlier this month, NGCP president and CEO Anthony Almeda said the grid operator is fasttracking the completion of the MVIP by first quarter of 2022.
He said right of way (ROW) acquisition remains to be the biggest hurdle in completing the project.
The MVIP, certified as an energy project of national significance in 2018, was initially targeted for completion by December 2020, but was extended to December 2021 due to the impact of the COVID-19 pandemic and subsequent quarantine restrictions across the country.
And in February, the NGCP said the project may not be completed on the adjusted December 2021 target completion because of the damage of several portions of its fiber optic cable connection.
The project covers 184 circuit kilometers (ckm) of submarine cables and 526 ckm of overhead wires connecting Dapitan, Zamboanga del Norte to Santander, Cebu.
Once completed, the MVIP will connect the Visayas and Mindanao grids through a HVDC system with a 450-megawatt (MW) initial capacity, realizing a one Philippine grid.
The interconnection of Visayas and Mindanao was first proposed by government in 1984, but it was private entity NGCP which brought the government’s decades old plan from the feasibility stage to the implementation and completion stage.
The MVIP, provisionally approved by the Energy Regulatory Commission (ERC) in 2017, is considered the biggest power infrastructure project in the history of the country with an estimated project cost of P52 billion.
NGCP holds the 25-year concession contract to operate the country’s power transmission network. It is 60 percent controlled by Filipino-owned entities One Taipan Holding Corp.’s Monte Oro Grid Resources led by Sy and Pacific21’s Calaca High Power Corp. led by Coyiuto. The remaining 40 percent is held by State Grid Corp. of China (SGCC) as its technical partner.