ERC approves NGCP proposal to improve substations in Visayas

The Energy Regulatory Commission (ERC) has approved the National Grid Corp. of the Philippines (NGCP) proposal to take on a P420-million transmission project in Visayas. The project will upgrade the NGCP’s substations in Talavera in Ormoc, Leyte and in Kabankalan, Negros Occidental, ERC said. The project is aimed at increasing capacity of the substations to support the projected growth in power demand in major load centers like Cebu, Leyte, and Negros islands, the power sector watchdog said. NGCP likewise said the project would help reduce power outages in these provinces in Visayas. “Moreover, the proposed additional transformers at the said substations will provide single outage contingency at the substation level, [preventing] power interruption to the customers should any of the transformers malfunctions," NGCP said. Energy Secretary Jose Rene Almendras said the current power demand in Visayas is growing at 5.4 percent a year – that as the economy grows, consumption of electricity also grows. There is a need to reinforce and upgrade the facilities to support economic growth, Almendras pointed out. Visayas now has a dependable power-generating capacity of 1,505 megawatts (MW) while peak demand is at 1,430 MW, with a required reserve margin of 335 MW. “The region may be experiencing brownouts simply because of that limited reserve. By the year 2018-2030, the peak demand is targeted at 2,150 MW," Almendras said. “Clearly, this growing need for energy only means more opportunity for our partners in the private sector. We must continue to invest in exploration, development, and production while, at the same time, maintaining high standards of management and minimizing environmental impact," he said. —JE/VS, GMANews.TV