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Saturday, September 21, 2024

NGCP asks ERC to allow cost recovery for energized projects

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National Grid Corp. of the Philippines expressed hope the Energy Regulatory Commission will act on the recoveries it applied for with the energization of the Hermosa-San Jose 500-kiloVolt (kV) transmission line at its full 8,000-megawatt (MW) capacity.

NGCP said in a statement the ERC allowed NGCP to recover only P19 million, or less than 0.1 percent of the actual cost of the P16.5 billion Hermosa-San Jose line component of the P20.94 billion Mariveles-Hermosa-San Jose transmission line project.

“With the completion of this critical project, NGCP is optimistic that the ERC will act on the overdue recoveries applied for by NGCP,” the company said.

NGCP assured the public and its stakeholders that it would continue to deliver on its commitment to improve, expand, strengthen and reinforce the country’s power grid.

A part of the Mariveles-Hermosa-San Jose 500kV facility, the line will accommodate an additional 2,200 MW of supply from new power plants in Bataan and Zambales to the rest of the Luzon grid.

Line 1 was energized on May 27, 2023 to accommodate power generation in Bataan with a 2,000-MW transfer capacity, only a quarter of its full capacity pending the completion of the then unfinished portion of the line, and was fully completed on May 19, 2024, enabling a 4,000-MW line capacity.

The full completion of Line 2 will accommodate 8,000 MW in generation capacity, more than enough for existing and any incoming generation.

“NGCP completes this landmark energy project under the leadership and guidance of Pres. Ferdinand Marcos, Jr. This marks the full completion and energization at full capacity of this critical facility, strengthening and expanding the grid under NGCP,” the company said.

The Mariveles-Hermosa-San Jose 500kV line consists of 395 transmission towers, 275.6 circuit kilometers of transmission lines, two new substations and 2,000 MVA in substation capacity. Alena Mae S. Flores

The project was certified as an energy project of national significance (EPNS) but still encountered various difficulties particularly on right-of-way due to opposition of landowners, long and tedious judicial processes, and protracted permitting process by local government units.

A portion of the line, owned by Phirst Park Homes Inc., was the subject of a temporary restraining order (TRO) issued by the Supreme Court in July 2023.

NGCP immediately stopped activities along Towers 170-178, stalling the ongoing stringing of the line’s remaining circuit from July 2023 to April 2024.

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