Cebu-Bohol power link gets ERC nod

BY LENIE LECTURA – JUNE 6, 2022
from Business Mirror

The Energy Regulatory Commission (ERC) has approved the National Grid Corporation of the Philippines’ (NGCP) Cebu-Bohol 230 kilovolt (kV) interconnection project worth over P19 billion.

The transmission project is meant to avoid overloading of the Leyte-Bohol submarine cable and to continuously provide Bohol with quality, reliable, secure and affordable power supply. To achieve this, NGCP will directly interconnect Cebu and Bohol Islands via double circuit 230kV submarine cables.

“With the interconnection, the overloading of Leyte-Bohol 138kV submarine cable will be avoided and the Bohol Island would be provided with another source of power coming from the Island of Cebu,” NGCP said.

The project’s generation line rental costs will also be lower since local generators in Bohol may no longer be dispatched. Moreover, it will address security and reliability issues in Bohol since the project will provide another corridor of power directly from Cebu.

“NGCP’s proposed project is hereby approved in the amount of P19,614,654,716.53, subject to optimization based on its actual use or expenses incurred during the reset process for the next regulatory period, following the procedures stated in the Rules in Setting the Transmission Wheeling Rates and other relevant issuances of the Commission,” the ERC said in its decision promulgated last May 31.

The agency also directed NGCP to pay a permit fee of P147.1 million.

“A perusal of the evidence presented herein shows that the approval of NGCP’s application will redound to the benefit of the electricity consumers in terms of continuous, reliable, and efficient power supply as mandated by Section 2 of EPIRA (Electric Power Industry Reform Act).”

Also, the ERC said that if the project is not implemented, the expected opportunity loss is greater in terms of economic impact and productivity, than the amount spent for the project cost.

In April, the NGCP reported that it has set aside P160 billion for capital expenditures (capex). The bulk of the proposed capex is allotted for transmission projects, including completed and ongoing projects, those in the pre-construction stage, and those still in the pipeline.

These transmission projects are located within and around Metro Manila such as the Pasay 230kV Substation, Manila (Navotas) 230kV Substation, Marilao Extra High Voltage Substation, New Antipolo 230kV Substation, Taguig Extra High Voltage Substation, Taguig-Taytay 230kV Transmission Line, and Taguig-Silang 500kV Transmission Line.

To meet the projected load growth in Metro Manila, three major 500/230kV drawdown substations will be developed. These will be in Taguig City; Marilao, Bulacan; and Silang, Cavite. These are to be complemented by the development of additional 230/115kV substations in Antipolo, Navotas, and Pasay.

The reliability of power transmission delivery to Metro Manila will be addressed through the development of new transmission corridors in Metro Manila such as the Taguig-Silang 500kV and Taguig-Taytay 230kV lines.

Image credits: www.ngcp.ph