National Grid Corp. of the Philippines is investing P1.65 billion to upgrade a transmission line and expand the capacity of two substations in southern Luzon to accommodate the increasing power demand within the area.
According to the NGCP, it was spending P1.13 billion to upgrade the Kalayaan-Bay 230-kiloVolt (kV) transmission line in Laguna to help reduce system loss (referring to the electricity that was either lost during transmission or pilfered).
The NGCP explained that the Kalayaan-Bay corridor provided the shortest route from power-generation sources to the distributors and electric cooperatives and offered operating flexibility in the dispatch of power plants in the area, including the Calaca coal-fired power plant, the 458.53-megawatt Makban geothermal power facility, the 1,000-MW Sta. Rita gas plant and the Kalayaan hydropower facility—particularly during maintenance of the related transmission lines.
Upgrading the Kalayaan-Bay line would also allow NGCP to maintain the so-called N-1 contingency, which referred to the ability of the power grid to sustain its integrity in case of loss of a major component of the system, it added.
NGCP is also investing P515 million to increase the capacity of its substations in Batangas and Bay, Laguna.
Two units of 300-megavolt ampere (MVA) transformers will replace the two existing 100-MVA transformers in the Batangas substation, while one unit of a 100-MVA transformer will also be installed at the Bay substation in anticipation of increased demand from big customers.
Data from NGCP’s planning and engineering group showed that the growth rates of some of its big customers are: Atlantic Gulf and Pacific Co., 3.91 percent; Bobcock-Hitachi, 3.09 percent; San Miguel Foods Inc., 3.78 percent; Puyat Steel Corp., 2.33 percent; Keppel Philippine Shipyard, 2.49 percent; Ibaan Electric and Engineering Corp., 3.53 percent; Lima Land, 3.41 percent; Republic Cement, 3.26 percent; and Coco Chemical Industries, 2.48 percent.
NGCP said it started the expansion of the substations in December 2011 and expected to complete the project within the first quarter of 2013.
NGCP, the country’s private transmission operator, has earmarked P48 billion for various transmission projects from 2011 to 2015 to further improve the efficiency and reliability of its network. For 2012, NGCP is spending P14.3 billion to fund the construction and installation of critical transmission and substation projects across the country.