DOE to ensure on time completion of grid connections

MANILA, Philippines — The Department of Energy (DOE) has committed to work on the challenges identified by President Marcos in the power sector during his recent State of the Nation Address (SONA), primary of which is ensuring that grid connections are finished on time.

The DOE is ensuring adequate energy supply through immediate and short-term measures despite challenges in the wake of the war in Ukraine and the huge spike in coal and fuel prices in the international market.

Energy Secretary Raphael Lotilla, however, said there is much more to be done notwithstanding all accomplishments over the past year.

“The energy sector is ready to take on the challenges cited by the President in his second State of the Nation Address,” Lotilla said.

“For one, we will make sure that grid connections, the needed highways for electricity, will be completed in a timely manner so that additional generation capacity will be delivered down to the distribution sector, and ultimately to the household level,” he said.

Lotilla said the government would see to it that transmission lines and related infrastructure, as well as system impact studies, are carried out at the pace required by the power needs of the country moving forward.

The DOE is making sure that all its planning and policies for the long-term period will be embodied in the updated Philippine Energy Plan for 2023 to 2050 which will be released in the next few months.

“We will continue to work on long-term solutions in accordance with the clear goals set by the President to develop indigenous sources of energy, particularly renewables,” Lotilla said.

“We commit to pursue our mission and respond to emerging energy challenges and issues to ensure sustainable, stable, secure, accessible, and reasonably priced energy,” he said.

President Marcos, during his SONA, issued a reminder to the National Grid Corp. of the Philippines (NGCP) to complete its deliverables.

Citing data from the Energy Regulatory Commission (ERC), the DOE said NGCP has 68 delayed transmission projects, 37 of which were approved by the ERC outside the third regulatory period (TRP) and were issued show cause orders.

It said the other 31 delayed projects were included in the TRP in 2009, but have yet to be issued show cause orders.

For these 31 projects, the ERC is currently evaluating if the proper recourse is to make the necessary adjustments in the on-going reset under the fourth regulatory period.

Overall, the DOE said the delays in transmission projects take one to nine years, while completion takes eight to 10 years.

“For this, we will make the NGCP accountable to complete all its deliverables, including the vital Mindanao-Visayas and the Cebu-Negros-Panay interconnections,” Lotilla said.

The DOE issued last June a department order that created the performance assessment and audit team for the operations of the transmission network provider and system operator.

The agency said it has already completed its audit work plan, and would commence together with the ERC the actual audit of NGCP.

NGCP, for its part, has committed to focus all the resources at its disposal to complete all existing transmission projects and expedite others in the pipeline.

“We agree with the President’s sentiments. Even before the SONA, NGCP has already been working toward the vision that he mentioned,” NGCP president and CEO Anthony Almeda said.

“After hearing it straight from him–his vision that is completely aligned with ours–we know we are on the right track and we’re more motivated to complete all our objectives in a prompt manner,” he said.