Cost recovery delays to affect NGCP projects
By Alena Mae S. Flores – July 14, 2024, 8:10 pm
from manilastandard.net
Transmission operator National Grid Corp. of the Philippines (NGCP) said over the weekend the delayed approval of its cost recovery may affect future power transmission projects.
NGCP spokesperson Cynthia Perez-Alabanza expressed hope the Energy Regulatory Commission would soon come out with a decision on “the reasonable recovery for NGCP’s investments.”
Alabanza said the NGCP’s last approved regulatory period was in 2015, and the fourth regulatory period should have started in 2016.
“We are in the middle of the fifth regulatory period. NGCP has been waiting a long time, and we are hopeful that whatever will be the decision will be fair and will encourage investors,” Alabanza said.
Alabanza said, however, NGCP remained committed to building more projects as directed by President Ferdinand Marcos Jr. during the inauguration of the Mariveles-Hermosa-San Jose Transmission Line on Friday.
She said the company needed support from the Department of Energy and the ERC to fast track the completion of pending transmission projects.
She said some of these projects needed regulatory approvals before they could proceed. “If we are given full support, you can see we can do more,” Alabanza said.
She said while NGCP was able to construct its projects fast, it faced numerous challenges such as right of way and permitting issues.
“But with the solid support of the President… we are very happy that he has confirmed that it is necessary to work together—NGCP and DOE, public and private—so we can realize the thrust of Bagong Pilipinas,” Alabanza said.
President Marcos said the recently-completed transmission project attests to the power of collaboration between the public and the private sectors towards a stable, reliable and resilient power supply for the country.
“It will also help in the administration’s thrust to transition to renewable energy to mitigate the impact of geopolitical uncertainties and of course, the effects of climate change. So, I direct the DOE and the NGCP to complete the almost 70 transmission projects on time as indicated in our Transmission Development Plan, particularly the Batangas-Mindoro Interconnection Project and the Northern Luzon 230-kiloVolt Loop. And this way, we can meet our increasing energy demand, encourage technological advancements, and produce more employment opportunities for our people,” Marcos said
The Mariveles-Hermosa-San Jose 500kV project is a major component of NGCP’s Western Luzon 500kV transmission backbone, which is integral to the company’s long-term vision of a resilient and efficient power grid that is capable of meeting the country’s growing energy demands.
The project, costing P20.94 billion, includes 395 transmission towers, 275.6 circuit kilometers of overhead lines, two new substations and 2,000 MegaVolt Amperes (MVA) of substation capacity.
