Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC Gives Green Light to NGCP’s Visayas-Mindanao Interconnection Project

The Energy Regulatory Commission (ERC) in an Order dated 11 July 2017 granted provisional authority to the National Grid Corporation of the Philippines (NGCP) to implement the Visayas-Mindanao Interconnection Project.  The Project involves the interconnection of Visayas and Mindanao via Cebu and Zamboanga.  The converter stations in Visayas and Mindanao will be located in Sibonga, Cebu and Aurora, Zamboanga del Sur, respectively.  The Project is estimated to be completed in forty six (46) months with an estimated cost of PhP51,696.70 M.

The Visayas-Mindanao interconnection project is in support of the government’s vision to interconnect the major grids into a single national grid which is expected to help improve the overall power supply security in the country as sharing of reserves will already become possible.  The project also aims to reinforce the operation of the electricity market by maximizing the use of available energy resources and additional generation capacities in Visayas and Mindanao which include the renewable energy resources.

The ERC’s grant of green light to NGCP’s Visayas-Mindanao Interconnection Project is subject to certain conditions, particularly:  (1) The proposed project shall be subject to optimization based on its actual use and/or implementation during the reset process for the next regulatory period; (2) NGCP is required to conduct competitive bidding for the purchase of major materials in the implementation of the project; and (3) NGCP’s payment of the permit fee.

“The provisional approval granted to NGCP to implement the Visayas-Mindanao Interconnection Project will enable power supply importations among the Luzon, Visayas, and Mindanao grids.  For instance, the deficiency of supply in Visayas may be supplied by importing power from Luzon or Mindanao.  Hence, this Visayas-Mindanao Interconnection will help address the insufficient power supply and will also help optimize the available power supply in the Philippine Grid,” ERC OIC Alfredo J. Non said.



Date Published: 9/5/2017

 


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