NGCP seeks government support in RE integration

NGCP transmission line with sun 2

The National Grid Corporation of the Philippines (NGCP) supports the country’s switch to renewable energy (RE), as the corporation’s Transmission Development Plan (TDP) already takes into account the entry of RE plants that will link to the grid in the upcoming years. 

“The annual TDP prepared by NGCP and presented to stakeholders in public consultations is aligned with the Department of Energy’s National Renewable Energy Program 2020-2040. This targets 50% integration of renewables in the grid’s installed capacity by 2040,” NGCP said in a statement. 

The State Grid Corporation of China (SGCP) which is NGCP’s technical partner, possesses cutting-edge grid technologies and operates a highly sustainable power grid. The company has integrated the largest amount of renewable energy worldwide, with an installed capacity of 540 gigawatts (GW) and an impressive utilization rate of 97.4% in 2021.

This partnership with NGCP signals the country’s preparedness and capability to integrate high levels of variable renewable energy. 

“With its access to SGCC’s technology, NGCP is more than capable to accommodate the increasing integration of renewable energy into the grid for a more sustainable energy mix,” NGCP said.

However, incorporating more RE into the grid would necessitate greater contributions from the energy sector, such as a considerable expansion of the transmission backbone, as well as stronger support from both policy and infrastructure. Regulatory permission from the Energy Regulatory Commission (ERC) is also necessary for projects that include capital expenditures (CAPEX).

On top of that, it is necessary to plan the introduction of non-variable generation and energy storage systems at the same time as VRE installations. It is also important to prioritize the creation of Competitive Renewable Energy Zones to synchronize generating and transmission projects. Support policies like the Philippine Grid Code should also be reviewed and prioritizing the development of Competitive Renewable Energy Zones must also be well coordinated.

NGCP added that support from other sectors that are outside the energy industry is also important. Roads and ports should also be ready to accommodate the flow of materials needed to build the transmission facilities.

“If the ERC will allow us to spend the capital expenditures needed to support this laudable push towards green energy, we are very confident that NGCP will be able to deliver,” said the corporation. 

Despite the delay caused by the pandemic lockdowns, NGCP was able to construct the Hermosa-San Jose 500kV Line, which included 176.73 circuit kilometers of high voltage lines and a new substation, within 7 years which demonstrated the company’s dedication to the change. 

“We hope for the government and regulator’s support in crafting policies and allowing NGCP to have enough CAPEX to fund the required projects to support RE. This move towards a greener and more sustainable grid requires a holistic approach and we hope for the synergy among all the energy players to ensure the fruition of these efforts,” added NGCP.