NGCP to spend P160 billion until 2025

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is seeking regulatory approval for its P160-billion capital expenditure (capex) program until 2025.

NGCP filed separate capex applications with the Energy Regulatory Commission (ERC) for the fifth regulatory period (2021 to 2025).

Of the total, NGCP has set P111.4 billion for transmission projects, including completed and ongoing projects, those in the pre-construction stage, and those still in the pipeline.

The major transmission projects in Metro Manila include the Pasay 230-kilovolt (kV) substation, Manila (Navotas) 230-kV substation, Marilao Extra High Voltage substation, New Antipolo 230-kV substation, Taguig Extra High Voltage substation, Taguig-Taytay 230-kV Transmission Line, and Taguig-Silang 500-kV Transmission Line.

To meet the forecasted load growth in Metro Manila, the grid operator is developing three major 500/230kV drawdown substations in Taguig City; Marilao, Bulacan; and Silang, Cavite.

These projects will be complemented by the development of additional 230/115-kV substations in Antipolo, Navotas and Pasay.

NGCP is also eyeing to address the reliability of power transmission delivery to Metro Manila through the development of new transmission corridors such as the Taguig-Silang 500kV and Taguig-Taytay 230kV lines.

The grid operator has also included island interconnection projects such as the Palawan-Mindoro and Batangas-Mindoro Interconnection, which are in the pre-construction stages.

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 500-kV 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 grid operator said.

Meanwhile, the NGCP has set a capex of P22.3 billion for operations and maintenance (O&M), a major responsibility as transmission network operator.

Under this segment, the budget is focused 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.

NGCP is also looking to spend P7.1 billion for system operations projects, allotted for upgrading of the SCADA/EMS system, expansion of grid-related telecommunications facilities, further enhancements of cybersecurity systems, and power quality monitoring.

The capex balance amounting to P19.2 billion is allocated for investments on infrastructure development (P11.12 billion), IT network (P1.23 billion), security and aviation (P1.09 billion), and facilities (P4.26 billion).

The grid operator has committed to spend P440 billion until 2033 to expand and strengthen the country’s transmission network to meet the growing power demand.

Under the Transmission Development Plan (TDP), NGCP expects growth in demand to increase by an annual rate of 6.23 percent for 2021 to 2025, 6.73 percent for 2026 to 2030, and 6.49 percent for 2031 to 2040.

Meanwhile, it projects peak demand to almost double from a peak national demand of 15,282 megawatts (MW) in 2020 to 28,631 MW by 2030, and almost quadruple by 2040 to 53,569 MW.

The TDP outlines NGCP’s plans to expand, develop, and monitor the grid throughout the country.

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.