Govt approves phase one of Natl Grid’s proposed P24-B project

The Energy Regulatory Commission (ERC) has approved phase one of the National Grid Corporation of the Philippines’ proposed P24-billion Leyte-Mindanao Interconnection Project, paving the way for a P91.42-million study on the plan. The initial phase will involve preparing an updated project feasibility study, conducting a transmission route survey, and hiring consultancy services, the ERC said. “The LMIP-Phase I will redound to the benefit of National Grid's consumers in terms of continuous, reliable and efficient power supply as mandated by Republic Act 9136 or the Electric Power Industry Reform Act of 2011," the company said. Phase one of the project is a precondition of phase two, which involves the physical construction of the proposed interconnection between the Leyte and Mindanao grids. The project will benefit the national power grid, the ERC added, because it will optimize the operations of hydropower plants in Mindanao, improve the reliability of the Mindanao power system, optimize standby and spinning reserves due to the sharing of reserves, and ensure the exchange of energy during periods of shortfall or surplus of power supply between major power systems. The ERC also expects the project to create more open, liberalized, and competitive markets through the wholesale electricity spot market in the future; and to open up more investment opportunities in Mindanao, both in terms of power generation and industrial loads. The company will “advance" the funds needed to jumpstart the project, National Grid president Henry Sy Jr. earlier said. — PE/VS, GMA News