DOE eyes “parallel green grid” for RE projects

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The Department of Energy (DOE) keenly pushes for the installation of a ‘parallel green grid system, ‘ an upgrade and expansion of the Philippines’ energy transmission system. 

According to a report by Manila Bulletin, the said project will underpin the integration of renewable energy (RE) facilities, especially the entrance of the 50-gigawatt (GW) offshore wind projects in the updated Philippine Energy Plan (PEP). 

The planned Smart and Green Grid System (SGGS) will be established either with the help of state funding, deals on public-private partnerships (PPP), or via official development assistance (ODA) loans, with the assistance of National Economic and Development Authority, Department of Energy (DOE) Secretary Sharon S. Garin said. 

Garin added that projects not yet covered in the Transmission Development Plan (TDP) will be the transmission infrastructure expansion projects to be undertaken in the planned SGGS. This is based on the submission of the National Grid Corporation of the Philippines (NGCP) to the energy department. 

Additionally, the development model for State-sponsored transmission facilities may become definite through the government-controlled National Transmission Corporation (TransCo). The operation will continue to be a responsibility of the NGCP, with operation fees as compensation, Garin further explained.

The energy secretary affirmed that the scale of upcoming investments and their technical design of the transmission relies on the mode of investment arrangement to be determined by the administration.

While the parallel grid buildout is classified as a ‘smart and green grid,’ all power plants connected to these facilities could add up their power capacities aligned with the fair access provisions stated in the Electric Power Industry Reform Act.

Amid a surge of RE investment opportunities and interests, Garin stated that the government is striving to step up warranted investments for expansion, scale-up, and holistic development of the power transmission in the Philippines.