NGCP capex to exceed P600 billion for over 100 transmission projects

THE National Grid Corp. of the Philippines (NGCP) said it is allocating more than P600 billion in capital expenditure (capex) for over 100 transmission projects in its pipeline.

“Moving forward, we want to spend over P600 billion,” NGCP Spokesperson Cynthia P. Alabanza told reporters on Thursday.

The grid projects form part of the Transmission Development Plan (TDP) 2024-2050, which are “ready for implementation.”

Major projects include the Balaoan-Laoag 500-kilovolt (kV) Transmission Line, the Western Luzon 500-kV Backbone Stage 2, the Tuy-Dasmariñas 500-kV Line and the Batangas-Mindoro Interconnection.

Visayas projects are the Cebu-Lapu-Lapu 138-kV Line, the Amlan-Dumaguete 138-kV line, the Luzon-Visayas HVDC Bipolar Operation, the Calbayog-Allen 138-kV Line, the Nabas-Caticlan-Boracay 138-kV Line, the Panay-Guimaras 138-kV Line, and the Barotac-Viejo-Unidos 230-kV Line.

The NGCP is also constructing the Laguindingan 230-kV Substation and the Kabacan 138-kV Substation in Mindanao.

The grid operator unveiled its long-term grid development plan which covers 2040-2050. The plan is designed “to address the needs of the power grid, ensuring its reliability and stability to prevent transmission-related outages.”

“Our TDP is a desktop plan that may or may not happen because things can change… It is a horizon planning exercise that will materialize during the regulatory period (RP) process,” Ms. Alabanza said.

The rate reset process is usually a forward-looking exercise that requires the regulated entity to submit forecasted expenditures and proposed projects over a five-year regulatory period for the ERC to review and adjust.

NGCP President and Chief Executive Officer Anthony L. Almeda said he is hoping for a “fair” resolution of its rate reset. 

“(We want it to be) fair for all and just follow the rules of the agreement. At the end of the day, we follow all agreements,” Mr. Almeda.

Last week, the Energy Regulatory Commission (ERC) issued the draft final determination for NGCP’s 4RP, covering the years 2016 to 2022.

In the draft, the ERC is hoping to set allowable revenue for NGCP of P310 billion, against the P522 billion sought by the NGCP.

Asked to comment, Ms. Alabanza said that the NGCP is still studying the draft final determination and is hoping to submit its comments within the month.

“The NGCP is looking at computations and drafting our position on that. We still don’t have a statement, pending the result of our assessment,” she said. — Sheldeen Joy Talavera