The National Grid Corp. of the Philippines (NGCP) is targeting the completion of six transmission projects worth about P23.5 billion over the next 12 months, as the country's sole grid operator works to shore up transmission reliability amid power supply constraints.

The company's transmission network spans the country's three island grids of Luzon, Visayas, and Mindanao, forming the backbone that moves electricity from power generators to distribution utilities.

Speaking at a briefing on Thursday, NGCP Assistant Vice-President Cynthia P. Alabanza said the company has already completed five transmission projects with a combined value of P7.18 billion.

In Luzon, the completed works include the P744.22-million Nagsaag-Tumana 69-kilovolt (kV) Transmission Line Project. In the Visayas, NGCP finished the P1.04-billion Visayas Substation Reliability Project and the P121.50-million Visayas 69-kV Transmission Line Upgrading Project. In Mindanao, the grid operator completed the P2.46-billion Tacurong-Kalamansig 69-kV Transmission Line Project and the P2.82-billion Laguindingan 230-kV Substation.

The six projects slated for completion by year-end are:

Luzon

• P4.52-billion North Luzon Substation Upgrading Project 1
• P3.53-billion Tuguegarao-Lal-lo (Magapit) 230-kV Transmission Line in Cagayan province

Visayas

• P7.42-billion Nabas-Caticlan-Boracay Transmission Line Project, which serves the resort island of Boracay and its gateway town of Caticlan
• P3.55-billion Panay-Guimaras 138-kV Interconnection Project, linking Panay island with the island province of Guimaras

Mindanao

• P3.66-billion Mindanao Substation Expansion 4 Project
• P872.5-million Nasipit Substation Bus-in Project

Ms. Alabanza said the projects are intended to improve the reliability of the country's transmission system, but she noted that the network can only deliver electricity that has actually been generated. Progress on the six projects can be tracked against that 12-month window as each line and substation enters service.

“If there is no power to deliver, even if you have a wide, good, and reliable system, you will still have problems. So it will help as long as we have sufficient supply,” she said.

NGCP is the country's sole grid operator and manages the national transmission system. It was granted a 25-year concession in 2007 to operate and maintain the grid, with operations starting in 2009.

Lower Transmission Charges

Electricity consumers may see lower transmission charges on their power bills this month, after NGCP's overall transmission rate declined mainly due to lower ancillary services charges. Transmission is one component of a monthly electricity bill, sitting alongside generation, distribution, and other pass-through charges.

NGCP Business and Regulatory Development Head Julius Ryan Datingaling said the overall transmission rate fell by 13.3% month on month to P1.5225 per kilowatt-hour (kWh) for August supply billing.

Ancillary services charges, which cover power reserves used to maintain grid reliability, dropped by 22.42% month on month to P0.8061 per kWh.

Transmission wheeling rates, meanwhile, rose by 4.02% month on month to P0.5655 per kWh. This charge covers the delivery of electricity from power generators through the transmission network to distribution utilities. With both components moving month on month, the overall transmission rate consumers see can change with each billing cycle.

— Sheldeen Joy Talavera, BusinessWorld

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