NGCP eyes P2.8B project for Panay

The National Grid Corp. of the Philippines (NGCP), operator of the national transmission network, is pushing for the construction of the P2.8-billion Negros-Panay Interconnection Uprating Project (NPIUP) Phase 2 to take up new capacities from upcoming power projects in Panay.

NGCP documents showed that the project would involve the installation of a second circuit submarine cable between Negros and Panay, as well as the second circuit overhead line from EB Magalona CTS to Bacolod Substation.

The project is expected to be completed by 2014.

The transmission operator said its plan to pursue the NPIUP Phase 2 was primarily driven by the need to accommodate numerous proposed power plants in Panay, whose excess generation would be likely exported to nearby Negros.

Citing the Power Development Program of the Department of Energy, the total capacity addition in Panay for the period 2011-2016 is about 420 megawatts, the NGCP explained.

Upon completion of NPIUP Phase 2, the interconnection can accommodate reasonable power interchange between Negros and Panay. In addition, reliable power supply can be ensured, while voltage regulation will be improved in Negros Occidental, where there are few power plants.

“The contracted supply from power plants outside Panay shall be transported to corresponding customers in Panay. Conversely, contracted supply from power plants in Panay shall be transported to corresponding customers outside Panay,” the NGCP stated.

According to the NGCP, another option to fully accommodate the 420 MW proposed power facilities on Panay Island is the implementation of the Cebu-Negros-Panay 230-kilovolt backbone.

“However, this project costs about P36 billion, which is not viable. NGCP believes that it is more sustainable and efficient to locate power plants in load centers thus avoiding an expensive interconnection project,” the grid operator said.