Photograph Courtesy of NGCP 
BUSINESS

Hundreds of power deals seek viability

Maria Bernadette Romero

Hundreds of power plant projects with a combined capacity of 39,908.964 megawatts, or MW, were cleared to undergo system impact studies, or SIS, with the National Grid Corporation of the Philippines, or NGCP.

Based on Department of Energy, or DoE, data as of the end of 2023, 158 out of the 175 total applications were from renewable energy projects.

Of these, the biggest capacity came from the Vind Energy Corp.’s 3,038 MW NOM FL1 offshore wind project in Occidental Mindoro and Batangas.

Notably, 10 SIS applications were for energy storage systems while the remaining seven were for power plants utilizing conventional fossil fuel.

Pipeline projects

SIS must be conducted with the NGCP to ascertain the influence of a proposed power project on customer connections in a grid and determine if any system modifications are required, such as additional transmission lines, transformers, or substations.

However, it should be noted that projects undergoing SIS are not yet assured of pushing through due to several factors including funding, line availability, and offtake agreements, among others.

NGCP had previously announced its plan to outsource some parts of the SIS process, pending approval from the Energy Regulatory Commission for the accreditation process.

The move was part of a series of steps aimed at improving the organization’s capabilities and expediting the completion of SIS. The long queue of prospective power plant connections has been hindering the process.

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.