NGCP allots bulk of capex for transmission projects
BY LENIE LECTURA – APRIL 21, 2022
from Business Mirror
The National Grid Corporation of the Philippines (NGCP) is awaiting the Energy Regulatory Commission’s (ERC) approval for the implementation of its P160-billion capital expenditure (capex) that would mainly be spent for its transmission projects.
If approved, the capex is good until 2025.
The grid operator said Thursday that bulk of the proposed capex worth P111.4 billion 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.
Island interconnection projects, such as the Palawan-Mindoro and Batangas-Mindoro Interconnection, which are in the pre-construction stages, are also in the list. The proposed interconnection of Mindoro Island with the Luzon Grid was envisioned to provide access to bulk generation sources in the main grid, while at the same time providing the means to export possible excess power within the island.
The nearest connection point in the Luzon Grid for the planned island interconnection project is the proposed Pinamucan 500kV Substation in Batangas, while Calapan would serve as the interconnection point in Mindoro. In parallel, the interconnection of Palawan to Mindoro is already being studied to provide more reliable power supply to the island province.
“NGCP continues to invest in undertakings for the improvement of the power transmission grid. We are also working on applying smart grid technologies to ensure reliable, efficient, and safe operations and create a world-class transmission network.”
The capex for operations and maintenance (O&M) is P22.3 billion for the 5th Regulatory Period (RP), or from 2021 to 2025, focusing on substation and transmission line reliability projects, upgrading of O&M tools and equipment, and network facility improvement with the introduction of smart grid technology.
Capex for system operations projects is estimated to reach P 7.1 billion, allotted for upgrading of the SCADA/EMS system, expansion of grid-related telecommunications facilities, further enhancements of cybersecurity systems, and power quality monitoring.
NGCP earmarked the remaining P19.2 billion for investments in infrastructure development for IT network, security, aviation, and other facilities.
The ERC said some of the projects were already approved. However, the cost recovery for those projects would still have to be determined in their 5th RP reset application, which NGCP has yet to file, according to ERC Commissioner Rexie Digal.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s electricity transmission grid, led by majority shareholders and Vice Chairman of the Board Henry Sy Jr. and Co-Vice Chairman Robert Coyiuto Jr.
