NGCP seeks ERC approval for interconnection project

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is seeking regulatory approval to build two interconnection projects worth over P22 billion.

Based on separate applications filed with the Energy Regulatory Commission (ERC), NGCP is proposing to put up the Batangas-Mindoro Interconnection Project and the Quezon-Marinduque Interconnection Project (QMIP).

Both projects involve the laying down of submarine cable, installation of overhead transmission lines and the development of substations.

The grid operator has estimated a project cost of P16.87 billion and an implementation period of 110 months for the Batangas-Mindoro Interconnection Project.

Mindoro, which is the country’s seventh largest island, has been plagued by power issues, including frequent power interruption, heavily subsidized generation rates due to heavy dependence on diesel and bunker fuel, delays in proposed energy projects, uneven electrification rates, and administrative issues of electric cooperatives (ECs) in the island.

In 2019, the island had a total load of over 80 megawatts (MW) from Oriental Mindoro Electric Cooperative (ORMECO) and Occidental Mindoro Electric Cooperative (OMECO). Demand is expected to increase further, making the supply from the National Power Corp.-Small Power Utilities Group (NPC-SPUG) insufficient.

In the application, NGCP said it was directed by several party lists representatives in 2020 to undertake necessary actions for the immediate interconnection of Mindoro and Palawan to the Luzon grid to ensure reliable and affordable electricity.

“The best and long-term solution to the inefficient power supply in the Mindoro island is the interconnection of the Mindoro to the Luzon Grid, which will eventually benefit Palawan,” it said.

Once connected to the Luzon grid, the island can source adequate and reliable power supply, access more competitive generation sources, and export power through several proposed renewable energy projects.

Meanwhile, NGCP said the QMIP is estimated to cost P5.32 billion with project implementation of 54 months.

It is forecasted that available generation in Marinduque, which has a current peak demand of 11.56 MW, would no longer be sufficient to meet the power needs of the residential and businesses in the island.

“With the interconnection, it will support power demand needed by the Marinduque island, and the government’s economic plans and programs for the island,” the grid operator said.

Both projects are part of NGCP’s mandate to plan and construct transmission facilities to ensure reliable transmission service.

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 Henry Sy Jr. and Robert Coyiuto Jr.