THE National Grid Corporation of the Philippines (NGCP) said Friday it has put in place key measures to address delays in the approval of system impact studies (SIS).
The grid operator said it expanded its SIS team with the recent hiring additional manpower. The move will boost the capacity of the organization to conduct more SIS simultaneously, NGCP said.
It is also adopting a clustering approach for SIS, grouping together power plants with a common connection point or study area. This clustering strategy, NGCP said, 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.
Moreover, NGCP is in the process of outsourcing some aspects of the SIS process, pending the issuance of an accreditation system 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.
NGCP President and Chief Executive Officer Anthony 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-come-first-served’ basis. We do it on a ‘first-ready-first-served’ basis, in order to be faster and more efficient,” 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 said.
The other day, Department of Energy (DOE) Secretary Raphael Lotilla said delays range from one and a half years to two years.
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.
“We need to improve for example on system impact studies because these have to be addressed upfront rather than later. The system impact studies are rather delayed,” the energy chief said.
“The Executive Secretary is chairing this one so by the next meeting, for example, we will be looking at how the transmission concessionaire, NGCP, is going to specify the 60-day approval of just the system impact studies,” Lotilla added.
The NGCP said that 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 percent 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 DOE. Accordingly, we have taken the necessary steps to expedite the process and improve its efficiency,” Almeda added.