Regulator approves EDC’s P637 million transmission facility

MANILA, Philippines — Lopez-led Energy Development Corp. (EDC) has secured regulatory approval to build a P637-million transmission facility that will link its geothermal power plant in Sorsogon to the Luzon grid.

The Energy Regulatory Commission (ERC) has given EDC unit BacMan Geothermal Inc. (BGI) the green light to develop and own dedicated point-to-point limited transmission facilities for its 22-megawatt (MW) Tanawon geothermal plant.

BGI plans to integrate the geothermal facility into the grid through a 7.5-kilometer, 230-kilovolt transmission line, linking it to the National Grid Corp. of the Philippines (NGCP)’s 230-kV Daraga Substation.

The connection asset includes a switchyard and other related transmission facilities.

BGI said results of a system impact study with the NGCP showed that the connection asset, which includes a switchyard and other related transmission facilities, is “technically feasible.”

A grid impact study is conducted to determine the capacity of the power grid to accommodate a new connection and identify necessary improvements such as additional transmission lines, transformers or substations.

Likewise, the study found that BGI – by itself or through EDC or its affiliates – has the technical capability to develop, construct, operate and maintain the connection asset, the company noted.

Further, the facilities operations and maintenance group of both EDC and BGI would operate and maintain the connection asset.

“The connection asset will be used solely by the Tanawon geothermal power plant project. If the connection asset is taken out of the transmission system, it will not affect the Luzon grid,” BGI pointed out.

As previously disclosed, EDC earmarked around P6.6 billion to develop the Tanawon project, which was originally targeted for completion last year.

Other geothermal projects in the company’s pipeline include the 5.6-MW power plant in Bago City, Negros Occidental and the 28-MW Mahanagdong plant in Leyte.

In July last year, EDC switched on the 28.9-MW Palayan binary geothermal power plant in Albay, as part of the expansion of its existing 140-MW Bacon-Manito facility.

A subsidiary of First Gen Corp., EDC has a portfolio of about 1,480-MW of installed capacity, accounting for about 20 percent of the country’s total installed renewable energy capacity.