NGCP to spend P89 billion for grid expansion, other projects

By Lenie Lectura – December 18, 2016

from Manila Bulletin

THE National Grid Corp. of the Philippines (NGCP) plans to earmark nearly P89 billion in capital expenditure (capex) between 2017 to 2020 to fulfill its mandate as the country’s transmission operator.

In a nine-page application, the grid operator asked the Energy Regulatory Commission (ERC) to issue an order provisionally authorizing the implementation of its proposed capex projects and approve, after notice and hearing, the proposed projects.

NGCP wants to implement 20 grid expansion and reliability projects worth P71.87 billion; 20 operations and Wholesale Electricity Spot Market (WESM) support projects worth P15.06 billion; 21 nonnetwork projects worth P2.42 billion; and other projects that involve wood pole and the associated asset replacement program of subtransmission assets worth P192 million. Further, the NGCP has proposed a capex program of P24 billion beyond 2020.

“To avoid disruption of operation and noncompliance with its mandate under the Epira as the transmission operator, it is imperative that the implementation of the proposed capex projects be immediately approved,” it said.

NGCP, in its application, said it has the legal mandate to ensure the nondiscriminatory, reliable and high-performance operation of the transmission system; including a secured, reliable and efficient management of the high-voltage grid. To perform such functions, it seeks approval from the ERC to allow it to proceed with its capex program for 2017 to 2020.

One of the core mandates of NGCP is to improve and expand its transmission facilities to ensure a reliable, adequate, stable nationwide electrical grid.

Another mandate, it cited, is that it must fully comply with the requirements if the provisions of the Philippine Grid Code, the WESM rules and the WESM metering manual and guidelines.

The NGCP is required to seek prior approval from the ERC of any plan for expansion or improvement of its facilities in relation to its authority and responsibility to construct, install, finance, improve, expand, rehabilitate and repair the nationwide transmission system and the grid.

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