The Energy Regulatory Commission approved the application of National Grid Corp. of the Philippines to construct the P4.25-billion, 230-kilovolt Navotas substation project.
ERC approved the project because it was expected to redound to the benefit of consumers and would address overloading issues in the area.
ERC, in its decision, required National Grid, operator of the country’s transmission network, to conduct a competitive bidding for the purchase of major materials in the implementation of the project.
“If the proposed Manila (Navotas) 230-kV substation project is implemented with an initial capacity of 2 x 300 MVA [megavolt ampere], the transformer overloading issues at N-1 contingency can be addressed,” it said.
The regulator said amid the increasing power demand in Metro Manila, the substations serving the region suffered from spatial limitations and heavy loading conditions.
“The installation of additional transformers or development of new substations is essential in order to meet its [NGCP] transmission capacity requirements,” ERC said.
ERC said the project would provide the much needed physical space for future capacity expansion simultaneous to load growth.
It said the proposed substation project would also improve voltage regulation.
The transmission line of the substation project will be linked to the existing Marilao (Duhat) - Quezon (Balintawak) 230 kV transmission line.
National Grid is a privately-owned corporation in charge of operating, maintaining and developing the country’s power grid.
It transmits high-voltage electricity through “power superhighways” that include the interconnected system of transmission lines, towers, substations, and related assets.
The consortium, which holds the 25-year concession to operate the country’s power transmission network, is comprised of Monte Oro Grid Resources Corp., Calaca High Power Corp. and State Grid Corporation of China.