NGCP: Right policy mix will remove project roadblocks

By Lenie Lectura @llectura

The grid operator said it is more than capable to accommodate the increasing integration of renewable energy (r E) into the grid for a more sustainable energy mix.

“We hope for the government and regulator’s support in crafting policies and allowing NGCp to have enough capital expenditure [capex] to fund the required projects to support renewable energy [r E].” Its technical partner, the state Grid Corporation of China (sGCC), owns world-leading grid technologies as it runs a green and sustainable power grid. This technological partnership with sGCC gives NGCp an edge in ensuring that the philippine grid is ready and capable of integrating high levels of variable renewable energy. however, the grid operator pointed out that integrating more r E into the grid will require transmission backbone expansion and reinforcement in both policy and support infrastructure.

For instance, the company noted that major transmission backbone projects will require regulatory approval from the Energy regulatory Commission (ErC).

“The ErC, among all agencies, will be centrally crucial to the success of all this. The DoE [Department of Energy] itself has recognized, through undersecretaries rowena Cristina Guevarra and sharon Garin, that transmission projects to support their recent offshore wind projects have not been included in NGCp s 5th regulatory period application with the ErC ,” it said. access to funding was never a problem for NGCp External limitations, including regulatory caps on capital expenditures, protracted permitting processes by the local government units, and difficult rightsof-way procurement, have proven to be the primary roadblocks to project completion. If the ErC will allow us to spend the capital expenditures needed to support this laudable push towards green energy, we are very confident that NGCp will be able to deliver.” a side from this, the NGCp said some policies should be revisited to synchronize generation and transmission projects. support from other sectors outside the energy industry must also be in full force to accom- modate this integration. a lso, roads and ports must be ready to accommodate the expected influx of materials that will be needed to build the needed transmission facilities.

“The move to r E may take time but efforts must begin now. Even first world countries take around 10 years to build transmission backbone projects. NGC p was able to complete the he rmosa- s a n Jose 500kV Line, including a new substation and 176.73 circuit kilometers of high voltage lines, in seven years. This includes the delay brought about the 3-year pandemic lockdowns, and the fact that we were only allowed to recover less than 1 percent of the project cost.

With all things considered, NGCp is sure it can deliver its committed projects to improve the grid, as long as the political will and support are there and we are given a sustainable recovery framework,” the company said.

NGCp holds the sole and exclusive concession and franchise for operating the philippines’s transmission network.