National Grid Corporation of the Philippines is carrying out a comprehensive
series of actions to tackle the challenges posed by the lengthy queue of
System Impact Studies (SIS) for power plant connections.
The SIS is a critical assessment that determines the capacity of the power
grid to accommodate a new generator, and identifies necessary
improvements such as additional transmission lines, transformers, or
substations.
Due to the increasing demand for power generation in the country, the
number of applications for SIS surged significantly. Historically, however,
majority of the applicants do not push through with their initial plans, with
only around 28% of completed SIS resulting in the establishment of actual
power plants.
“Although 7 out of 10 SIS applicants will not actually pursue their power
investments, we are obliged to fully evaluate each application when they are
passed on to us by the Department of Energy (DOE),” noted NGCP President
and Chief Executive Officer Anthony Almeda. “Accordingly, we have taken
the necessary steps to expedite the process and improve its efficiency,” he
added.
One of the key initiatives is the expansion of the SIS team through hiring
additional manpower. NGCP expects to boost the capacity of the
organization and conduct more SIS studies simultaneously.
The company is also adopting a clustering approach for SIS, grouping
together power plants with a common connection point or study area. This
clustering strategy aims to streamline the process and accelerate the
evaluation of multiple projects, enhancing the overall efficiency and reducing
the waiting time for potential power plant developers.
In addition to these measures, NGCP is in the process of outsourcing some
aspects of the SIS process, pending the issuance of the accreditation process
by the Energy Regulatory Commission (ERC). This outsourcing initiative is
anticipated to further augment the organization’s capabilities and expedite
the completion of SIS for various power plant proposals.
Almeda pointed out that in more developed nations like the United States
and the United Kingdom, the completion of grid impact studies typically
takes more than three years. “Other countries usually operate on a ‘first-
ready-first-served’ basis. This strategy has been discussed with the DOE.
Itmay be worth considering to depart from the first-come-first-served basis
currently in place through EVOSS, in order to be faster and more efficient.
Generation project proponents who are first in line for SIS are not
necessarily first to be ready with complete requirements. In fact, many
request for time extensions, which also contributes to the prolonged SIS
processing time,” he emphasized.
The measures used by the NGCP to address the SIS backlog forms part of
the company’s extensive plan to meet the country’s increasing energy
requirements. “Our company is a vital part of a much bigger energy
landscape, with numerous roles and stakeholders. We take our functions and
responsibilities very seriously, and continuously work towards a cohesive,
centralized, and systematic approach to energy planning for our country,”
Almeda concluded. (PR)
