NGCP seeks approval of P8-billion capex for 2016

by Lenie Lectura – December 15, 2015

from Business Mirror

THE National Grid Corp. of the Philippines (NGCP) is seeking regulatory approval for its planned capital expenditure (capex) next year amounting to P8 billion.

The grid operator, in a 10-page order, is asking the Energy Regulatory Commission (ERC) to issue a provisional authority to implement the proposed capex program for 2016.

The new projects that the NGCP plans to undertake are the Tiwi Substation upgrading project, Naga Substation upgrading project, Clark-Mabiga 69-kilovolt (kV) transmission line project, Bataan 230-kV Grid Reinforcement project and the Hermosa-San Jose 500-kV transmission line project.

“One of the core mandates of NGCP is to implement upgrading and expansion programs to ensure that the system adequately and reliably meets forecast demand, system reliability, demand market requirements and capacity of new generators,” the NGCP said in its application.

Part of the capex also includes acquisition of the following transmission line assets: Cebu Energy Development Corp.-Visayan Electric Co.’s Colon 138-kV line; Calung-Calung 138-kV line; New Salong 230-kV substation and Salong Calaca 230-kV line; Ingore CTS, Ingore-Sawang 138-kV submarine cable, Sawang CTS, Sawang Zaldivar substation; and CIP II substation, Bacnotam-Malabanengbeng lines 1 and 2, and Mabaneng beng-Holcim 69-kV line.

Likewise, the NGCP is also required to ensure a reliable and efficient operation of existing transmission line and substation equipment; and to guarantee a safe and reliable energy supply to the distribution utility. To comply with this mandate, the NGCP needs to implement, among others, rehabilitation, refurbishment, testing activities to the existing transmission line and substation assets. The NGCP is required to seek prior approval from the ERC of any plan for expansion or improvement of its facilities.

Along with its authority and responsibility for the planning, construction and centralized operation and maintenance of its high-voltage transmission facilities, it is indispensible for the NGCP to ensure a reliable and high-performance operation of the transmission system.

“Thus, to avoid disruption of operation and noncompliance with its mandate under the Epira [Electric Power Industry Reform Act] as the transmission operator, it is imperative that the implementation of the proposed capex projects be immediately approved,” the NGCP said.