ERC sets hearings on NGCP’s petition for Lapu-Lapu project

By Lenie Lectura -February 11, 2020
from Business Mirror

THE Energy Regulatory Commission (ERC) is set to start hearings on the application of the National Grid Corp. of the Philippines (NGCP) for the approval of the proposed Lapu-Lapu 230-kilovolt (kV) substation project.

The agency has set the initial hearing on February 26. Three more hearings are scheduled next month on the 5th, 12th and 19th.

The ERC said these hearings will determine NGCP’s compliance with the jurisdictional requirements, expository presentation, pretrial conference and presentation of evidence.

Also, this is meant to give interested parties, if any, an opportunity to file their respective verified petitions to intervene.

In December last year, NGCP filed an application for the approval of the implementation of its Lapu-Lapu 230-kV substation project, with prayer for issuance of provisional authority.

“The proposed project is intended to fully support the government’s policy to ensure the quality, reliability, security and affordability of the supply of electric power by accommodating the increasing demand for electricity in the island of Mactan; provide another corridor of power equivalent to an N-1 provision and increase import capacity of power from Cebu, and improve the reliability of the electrical system of the Visayas grid,” it said.

The Cebu-Mandaue-Lapu-Lapu 138-kV transmission corridor serves as the bulk power delivery system, involving major substations in Cebu and Mactan Islands.

However, due to the significant increase in energy consumption in Mactan Island brought about by the operation of the new Mactan International Airport terminal, the construction of new hotels and resorts, condominium buildings, and other large industries and establishments, the projected load growth of Mactan Island based on 2019 demand forecast is now significantly higher compared to the 2011 forecast.

NGCP said the significant increase in the demand forecast would cause the 138-kV submarine cable to overload. Also, 138-kV submarine cable is no longer sufficient to accommodate the projected load growth of Mactan.

The NGCP thus proposed to implement outright the 230-kV transmission line capacity.

“A system collapse is imminent and may be experienced due to lack of N-1 provision, if the project will not be undertaken,” it said.

“Also, the island of Mactan will be deprived of additional capacity necessary for its projected demand, thereby retarding economic growth if the project will not be undertaken,” it added.

The estimated implementation period of the project is 55 months, it noted, adding, “thus, it is necessary for NGCP to immediately commence the implementation of the proposed project.”