Economy

NGCP says investment in substation upgrades reaches P6.47 billion

THE National Grid Corp. of the Philippines (NGCP) on Monday said that it had invested about P6.47 billion in substation upgrades to ensure grid resilience.

“The company continually implements projects to improve substation operations for the efficient and reliable delivery of power,” the NGCP said in a statement.

Since taking over the transmission system from the government in 2009, the grid operator has spent around P3.29 billion to modernize 15 of its substations and converter stations, it noted.

 The NGCP also said that these upgrades cater to the increasing load and reliability of the system.

The NGCP also said that between 2018 and 2021, it replaced 33 power transformers for a total of P1.8 billion.

Twenty-one of these transformers are in Luzon, three are in Visayas, and nine are in Mindanao.

“Besides this, 14 spare power transformers worth $14.6 million or P764 million were also delivered to six substations in North Luzon, five in South Luzon, one in Visayas, and two in Mindanao,” it said.

At the same time, the NGCP said that it had spent around $12.1 million or P612 million on four mobile transformer units as part of its ongoing preparations for the effects of man-made and natural disasters that may derail the transmission sector.

Many of these improvements were implemented in 2016 but still have yet to receive the provisional approval of the Energy Regulatory Commission (ERC), the NGCP noted.

“Given the operational need, NGCP proceeded with the implementation of these projects, setting aside for later, the issue on recovery approvals from the ERC,” the NGCP added.

BusinessWorld sought comment from the ERC but has yet to receive a reply as of press time.

In a previous statement, the NGCP said it had invested about P300 billion in improving the power transmission system since it took over in 2009.

The NGCP has also committed to finishing some transmission projects deemed vital to the country’s energy sector.

In June, the Energy department created a performance assessment and audit team to oversee the operations of the transmission network provider and system operator.

To recall, calls have emerged for a performance audit of the NGCP following the tripping of transmission lines on May 8, raising red and yellow alerts over the Luzon power grid. — Ashley Erika O. Jose

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