ERC clears Phase 1 of NGCP proj

MANILA, Philippines - The National Grid Corp. of the Philippines (NGCP) can now proceed with the first phase of its P24-billion Leyte-Mindanao Interconnection Project (LMIP) after the Energy Regulatory Commission (ERC) approved the application of NGCP to conduct of a P91. 42 million study on project.

In its decision, ERC said it found merit to the proposed LMIP.

“A perusal of the evidence presented herein showed that the application for the approval of the LMIP-Phase I will redound to the benefit of NGCP’s consumers in terms of continuous, reliable and efficient power supply as mandated by Republic Act 9136 or the Electric Power Industry Reform Act of 2011,” the ERC said.

The power sector regulator, in approving the NGCP application, also took into consideration the benefits of a unified Philippine grid.

These benefits include: the Mindanao hydropower plant operation will be optimized; the reliability of the Mindanao power system will improve; standby and spinning reserves will be optimized due to sharing of reserve; the exchange of energy will be enabled during periods of shortfall or surplus of power supply between major power systems (the Visayas and Mindanao and possibly Luzon); it will create more open, liberalized and competitive market through the WESM (wholesale electricity spot market) in the future; and it will open up more investment opportunities in Mindanao both in terms of additional power generation (due to a wider market) and industrial loads.

The NGCP, which now runs the country’s national transmission highway after securing through a public bidding two years ago a 50-year concession to manage such state assets, filed a petition last March 14 seeking ERC approval to implement the first phase of the LMIP.

It took over management of the transmission assets that used to be handled by National Transmission Corp. (TransCo) in line with the privatization thrusts of EPIRA.