Close to a hundred RE, storage projects seek viability

A total of 88 power generation and energy storage system (ESS) projects are set to undergo so-called system impact studies (SIS) with the National Grid Corporation of the Philippines (NGCP) to determine their viability.

Latest data from the Department of Energy (DoE) as of end-June indicated that out of 88 applications, 85 were related to renewable energy (RE) projects, primarily utilizing solar, wind, and hydro resources. 

The remaining three applications were associated with ESS projects.

Among the RE project and ESS applicants for SIS, Terra Solar Philippines Inc. stands out with the most significant capacity. Its project involves developing 3,500 megawatts (MW) of solar energy and 4,000 megawatt-hours (MWh) of battery ESS, showcasing their commitment to renewable energy and storage solutions.

SIS is necessary to determine the potential impact of a proposed power project on customer connections within a grid.

The SIS collaborates with the National Grid Corporation of the Philippines (NGCP) to assess whether adjustments to the system, such as additional transmission lines, transformers, or substations, are required to ensure the project’s successful implementation.

Notably, the success of projects implementing SIS remains uncertain due to various factors, such as funding constraints, lack of available transmission lines, and insufficient power off-takers.

To streamline the process and accelerate the evaluation of multiple projects, NGCP has adopted a clustering approach for SIS. This approach groups power plants with a common connection point or study area. It enhances overall efficiency and reduces the waiting time for potential power plant developers. 

NGCP has also noted that due to the increasing demand for power generation in the country, applications for SIS have significantly increased.

However, historically, the majority of applicants do not follow through with their initial plans. Only around 28 percent of completed SIS have resulted in the establishment of actual power plants.