NGCP undertakes P2.2-B transmission project to accommodate Ayala power plant

by Madelaine B. Miraflor, January 5, 2015
from Manila Bulletin

State Grid operator National Grid Corporation of the Philippines (NGCP) will implement a P2.2-billion worth of transmission project in Mindanao to accommodate the anticipated power capacity from an Ayala Group-led coal-fired power plant.

An application recently filed with the Energy Regulatory Commission (ERC) showed that NGCP is seeking for regulatory approval to develop a P2.22-billion transmission project that will accommodate the 600-megawatt (MW) coal plant owned by GNPower Kauswagan Ltd. Co.

GNPower Kauswagan is jointly owned by AC Energy Holdings Inc., a unit of conglomerate Ayala Corp., and Power Partners Ltd. Co.

Specifically, the company is set to construct a 4×150 MW clean coal-fired power facility in Kauswagan, Lanao Del Norte that has a total capacity of 600MW.

The project will be implemented in two phases: 3×150 MW to be completed by 2017 and the remaining 150-MW plant to be operational by 2018.

GN Power has already secured a power purchase agreement involving the supply of 330MW with 20 electric cooperatives belonging to the Association of Mindanao Rural Electric Cooperatives (AMRECO)

NGCP told the ERC that the entry of the GN Power plant requires associated transmission facilities to accommodate the additional capacity it will bring to the table as well as transmit this to the Mindanao customers.

“NGCP seeks authority from this Honorable Commission [ERC] for the immediate implementation of the project,” it further said.

The project, which is called Balo-i-Kauswagan-Aurora 230 kV Transmission Line Project (Phase I), has an estimated cost of P2.2 billion and is targeted for completion by 2016.

The phase two of the project, on the other hand, is scheduled for completion by year 2019 and will mainly involve the construction of another 230kV double-circuit transmission line from Kauswagan Substation in Lanao del Norte to Aurora Substation in Misamis Occidental.

“This will provide reliability and quality of power supply to the entire Zamboanga Peninsula given the uncertainty of the development of power plant in the area,” NGCP added.

In October 2014, the Henry Sy-led transmission firm also completed the construction of another transmission facility in Mindanao.

The new line is a 230-kilovolt transmission facility which will loop the northern and southern Mindanao areas. The project’s cost stood at P988 million.

Part of the second stage of the new Mindanao 230-kV transmission backbone project, the Kirahon-Maramag 230kV line is 213-circuit kilometer long that stretches from Villanueva in Misamis Oriental to Maramag in Bukidnon.

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