NGCP addresses SIS challenges

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) said various measures are being implemented to address challenges posed by the long queue of system impact studies (SIS) brought about by the increasing demand for power generation.

NGCP said the number of SIS applications have surged significantly due primarily to the country’s rising power generation demand.

The SIS is conducted to determine the capacity of the power grid to accommodate a new generator.

It also identifies necessary improvements such as additional transmission lines, transformers, or substations.

NGCP said that majority of the SIS applicants, however, do not push through with their initial plans.

The company said that historically, only around 28 percent of completed SIS have resulted in the establishment of actual power plants.

“Although seven out of 10 SIS applicants will not actually pursue their power investments, we are obliged to fully evaluate each application when they are passed on to us by the Department of Energy,” NGCP president and chief executive officer Anthony Almeda said.

At present, NGCP said nine SIS applications are ongoing, while 64 are queued.

Energy Secretary Raphael Lotilla earlier said the government is looking to address challenges in the delays and reduce significantly the SIS approval process by setting a 60-day timeline.

On NGCP’s end, Almeda said the company has taken the necessary steps to expedite the process and improve its efficiency.

He said one of the key initiatives being undertaken by the power transmission grid operator is the expansion of the SIS team through hiring additional manpower.

NGCP expects to boost the capacity of the organization and conduct more SIS studies simultaneously.

Further, the company is adopting a clustering approach for SIS, wherein power plants with a common connection point or study area are grouped together.

NGCP said the clustering strategy aims to streamline the process and accelerate the evaluation of multiple projects, enhancing the overall efficiency and reducing the waiting time for potential power plant developers.

On top of these measures, NGCP said it is also in the process of outsourcing some aspects of the SIS process, pending the issuance of the accreditation process by the Energy Regulatory Commission.

The outsourcing initiative is expected to further augment the organization’s capabilities and expedite the completion of SIS for various power plant proposals, according to the company.

In more developed nations like the US and United Kingdom, Almeda said the completion of grid impact studies typically takes more than three years.

“Other countries usually operate on a first-ready-first-served basis. This strategy has been discussed with the DOE. It may be worth considering to depart from the first-come-first-served basis currently in place through EVOSS, in order to be faster and more efficient. Generation project proponents who are first in line for SIS are not necessarily first to be ready with complete requirements. In fact, many request for time extensions, which also contributes to the prolonged SIS processing time,” Almeda said.

NGCP noted that the measures undertaken by the company to address the SIS backlog form part of its extensive plan to meet the country’s increasing energy requirements.

“Our company is a vital part of a much bigger energy landscape, with numerous roles and stakeholders. We take our functions and responsibilities very seriously, and continuously work toward a cohesive, centralized, and systematic approach to energy planning for our country,” Almeda said.