NGCP: P23.5 billion grid projects set for completion

MANILA, Philippines — The National Grid Corp. of the Philippines is targeting completion of six power transmission projects totaling P23.5 billion this year, NGCP spokesperson Cynthia Alabanza said.

While the projects are expected to bolster the reliability of the transmission network, Alabanza clarified that these alone would not resolve the persistent power supply constraints.

“The transmission system is only able to deliver power that exists and has been generated. So it will help as long as we have enough supply,” Alabanza told a media briefing yesterday.

In Luzon, she said the grid operator is gearing up to activate the P4.5-billion North Luzon substation upgrading project 1 and the P3.5-billion Tuguegarao-Lal-lo (Magapit) 230-kilovolt (kV) transmission line.

The P7.4-billion Nabas-Caticlan-Boracay transmission line and the P3.6-billion Panay-Guimaras 138-kV interconnection project are the remaining Visayas projects slated for completion this year.

As for Mindanao, the P3.7-billion Mindanao substation expansion 4 project and the P872.5-million Nasipit substation bus-in project are underway.

Alabanza said that NGCP’s grid investments are ongoing, with new projects entering the development pipeline to further improve the transmission network.

“Every year, there are new projects that we begin. There are projects in the pre-construction stage, and there are projects under construction,” she added.

So far this year, the NGCP has completed five transmission projects valued at roughly P7.2 billion.

The NGCP holds a 25-year concession agreement and a 50-year franchise to operate, manage and maintain the country’s state-owned power grid.

The company recovers its investments in the grid through transmission charges collected from consumers every month.

For September, consumers can expect lower transmission rates due to a decline in ancillary service charges, which cover the cost of power reserves procured by the NGCP to support grid reliability.

NGCP revenue management head Julius Ryan Datingaling reported yesterday that the overall rate fell by 13.3 percent to P1.52 per kilowatt-hour in August from the previous month’s P1.76 per kWh. This resulted from a 22.4-percent drop in ancillary service charges to P0.81 per kWh from P1.04 per kWh on a monthly basis.