P2.31-billion Mindanao power-transmission project gets ERC nod

by Lenie Lectura, February 11, 2015
from BusinessMirror

A proposed P2.31-billion transmission line project of the National Grid Corp. of the Philippines (NGCP), which runs from Davao Occidental to Davao del Sur, aimed at partly addressing the current power shortage in Mindanao was recently approved by the Energy Regulatory Commission (ERC).

In a 10-page order released this week, the ERC approved the NGCP’s application to implement the Malita-Matanao 230-kilovolt (kV) transmission line project.

The said facility will dispatch the power that will come from the proposed 600-megawatt (MW) coal power plant of San Miguel Consolidated Power Corp. (SMPC).

SMPC’s coal plant will be connected to the proposed new Malita 230-kV substation which will be connected to the grid through the existing Matanao-Toril-Davao 138- kV facility.

The NGCP stressed that if the proposed transmission project will not be implemented, SMPC’s coal plant will not be connected to the Mindanao grid and there will be no additional generation capacity to the island.

“Considering that SMPC will install 1×150-MW unit per year, the power curtailment that will not be injected to the grid due to lack of transmission line facility connecting SMPC’s coal plant will be 150 MW in 2015, 300 MW in 2016, 450 MW in 2017 and 600 MW in 2018,” the NGCP said.

The ERC, in its decision, said the proposed project of the NGCP is “justified.”

The regulator agreed with the NGCP when it said that existing facilities are not sufficient to accommodate huge capacity from SMPC’s coal plant. Thus, there is a need to put up a new transmission facility to accommodate this.

“Considering the insufficiency of power supply being experienced in the Mindanao island, additional generation is highly essential,” it said.

The said facility will be designated at 230 kV but will be energized initially at 138 kV. The target completion of the project is in 2016.

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