President Ferdinand Marcos Jr. on Friday ordered the Department of Energy and Energy Regulatory Commission to study the possibility of allowing third parties to construct transmission projects.
He also called on the country’s key energy players to make sure there will be “reliable power at all times.”
Mr. Marcos made the call during the historic switch-on of the Mindanao-Visayas Interconnection Project (MVIP), as he hoped that there would be no repeat of the massive blackout that hit Western Visayas earlier this month.
This marked the first time that the essential power grids were physically connected.
The President also stressed the National Grid Corporation of the Philippines’ (NGCP) “immense responsibility and role” in maintainingthe stability of the country’s grid, including the need to ensure the completion of critical interconnection projects and undertake activities to promote a “safe and reliable” grid operation.
“I have directed the ERC to complete the reset of NGCP’s rate without further delay,” President Marcos said. The reset would pave the way for a refund to consumers, as this would be reflected in lower transmission rates on power consumers’ electricity bills covering 2016 to 2020.
“I have also directed the Department of Energy and the ERC to look into the proposal of allowing third parties to construct transmission projects at the pace required by the country’s power needs as we grow out of the pandemic economy,” he added.
“We cannot afford to have another round of this costly interruption not only in Panay Island but anywhere in the country. So, let’s move forward with the lessons that we have gained from this blackout and [make] sure this massive inconvenience and loss for our people should not occur again,” President Marcos said in a speech at Malacañan Palace.
“The realization of our ‘One Nation, One Grid’ aspiration is definitely a crucial turning point for this country in ensuring reliable power at all times,” he added.
Noting the P3.8 billion in economic losses in Iloilo alone because of the recent power outage in Western Visayas, Mr. Marcos said interconnection projects such as the MVIP would help spur socio-economic development.
He expressed optimism that the Hermosa-San Jose 500-kilovolt transmission lines and the 230-kilovolt Cebu-Negros-Panay Backbone Project will be completed by February and March this year, respectively.
“We realize these are daunting tasks but I call on you to faithfully fulfill these obligations which are so necessary for the progress of our country,” Mr. Marcos said.
“Let me reiterate the need for greater responsibility, transparency, and accountability among key players in our power sector, with NGCP as the singular operator of our country’s united power grid,” he said.
“I assure the people that similar support and cooperation will always be extended by (the) government to ensure the timely completion of all the significant transmission projects, particularly those that will relieve congestion, as well as those needed to deliver additional capacities that can be provided by renewable energy,” he added.
Spearheaded by the NGCP, the project worth P52 billion aims to enhance the stability and reliability of the country’s power supply by enabling the sharing of power resources among the three major Islands. The MVIP connects the Mindanao and Visayas grids via a 184 circuit-kilometer High-Voltage Direct Current (HVDC) submarine transmission line, which runs from Dapitan, Zamboanga del Norte to Santander, Cebu and includes 526 circuit-kilometers overhead lines.
The project has been designed to initially carry 450 megawatts (MW) of electricity, with the capacity to expand to 900MW to meet future demands. The energization ceremony was held at Malacañang, led by the President; NGCP’s Dumanjug Converter Station in Cebu; and Lala Converter Station in Lanao del Norte, witnessed by key national and local government officials.
“NGCP is honored to operationalize this landmark energy project conceptualized during then-President Ferdinand E. Marcos, Sr.’s visionary leadership, now fully realized under the leadership and guidance of the administration of his son and namesake, Pres. Ferdinand Marcos Jr.,” the company said.
“This event marks the successful energization at full capacity of this monumental undertaking, a vision of unifying the grid proudly coming to fruition under NGCP,” the company said.
The interconnection was conceptualized as early as the 1980s but was abandoned by the government due to challenges in implementation.
Only in 2011, with NGCP as private transmission concessionaire, were the studies revived for the feasibility of such undertaking.
Surveys on the original eastern route envisioned by the government presented technical challenges and geophysical hazards, including underwater volcanic activity, unexploded ordnances from the Battle of Surigao, and strong seabed current. NGCP then turned west.
A route study beginning in Northwestern Mindanao, crossing over to load center Cebu province, was completed in 2015, with results showing no threat of volcanic activity, and lesser seismic hazards and regional fault compared to the eastern route.
In April 2017, NGCP filed its application with the ERC to commence the implementation of the MVIP. The project was approved in July 2017 with a total cost of P51.3 billion.
