Napocor study obtains US grant

The United States government granted a $353,000 grant for a feasibility study on the proposed transmission system support devices project.

The recipient of the grant is the National Power Corp. (Napocor) which is the government agency handling the transmission network nationwide.

US Energy Deputy Secretary T.J. Glauther said the US government has been and will continue to be interested in assisting the Philippine government in developing indigenous and renewable sources of energy such as wind, solar and hydro.

Glauther also indicated that they are watching with interest the developments of the reforms and deregulation of the Philippine electricity sector.

"Your change (reforms in the energy sector) will be good for the Philippine economy," he added.

The US government has already undertaken the deregulation of its electricity sector on a state-to-state basis. The US energy department plans to work for the sector's deregulation on a nationwide scale.

The grant will involve a feasibility study conducted by the Electric Power Research Institute (EPRI) of the US designed to look for new efficiency levels for Napocor's transmission system in the Luzon Grid. The completion of the study will be on March 30, 2002.

The TDA originally reviewed two project feasibility studies for possible funding for the transmission efficiency levels and another technical design study for the power pool trading system, which Napocor hopes, to put in place upon the deregulation of the power sector.

The TDA grant represents partial funding of the feasibility study, which is expected to cost about $600,000. The EPRI will also provide additional funds of about $200,000 to complete the study.