CODE:
B6
CHALLENGES IN THE PHILIPPINE ISLAND POWER INTERCONNECTION
AND POLICY RECOMMENDATION
Bienvenido D. Valeros, National Transmission Corporation, +639178790294, [email protected]
John C. Placente, National Transmission Corporation, +639173008055, [email protected]
ABSTRACT
The Philippines is composed of 7,107 islands and is being powered mainly by three power grids, namely, the Luzon
Visayas and Mindanao grid. Being an archipelagic country, it is necessary to install submarine cables and commission
substations to interconnect the power from island to island. With the entry of new power investors in the country, the
generator proponents construct their energy plants on islands, thus, making it necessary for the transmission provider,
the National Grid Corporation of the Philippines (NGCP), to provide new submarine lines and expand substation
facilities to provide a path for power delivery for the new plant. Transmission planning methodologies incorporate
maximum power delivery scenarios and often times, the submarine cables are rated proportional to the amount of power
that the new generator can deliver. However, such new construction is very expensive, especially the cost of
submarine cables. The study is conducted to determine the various strategies and policies the Philippines may take in
order to optimize the planning conditions. The policies that are being suggested are (1) optimal generator location, (2)
island power self sufficiency, (3) percentage delivery of power and (4) probabilistic approach in the transmission
planning in order to determine whether it is necessary to install new submarine cables. Such policies shall bring about
future and optimum savings for the public, as new installations shall be reduced. In order to fully implement in the
Philippines, the NGCP, National Transmission Corporation (TransCo), the Department of Energy (DOE) have to agree
and propose an acceptable policy framework for the Energy Regulatory Commission (ERC) to approve. Also, the
purpose of the paper is gain valuable technical inputs and experiences from CEPSI members for a final proposal to the
operational and planning problem in the Philippine transmission system.
Keyword:
transmission, submarine, planning, interconnection, generation
INTRODUCTION
The Philippines is an archipelagic country composed of 7,107 islands with 2,000 islands as inhabited. Luzon and
Mindanao, being the two largest islands, are powered by large generators connected in a power grid. The Visayas,
which is composed of group of islands, is also connected to the power grid via overhead transmission lines and
submarine cables. The Philippine power generators and transmission systems were previously being constructed,
operated and maintained by the government, thru the National Power Corporation (NPC).
In 2001, the Philippines enacted the Republic Act 9136 entitled as "Electric Power Industry Reform Act of 2001" or
popularly known as EPIRA. The law has several declarations and purposes, of which the top reasons are (1) to ensure
and accelerate the total electrification of the country, (2) to ensure quality, reliability, security and affordability of the
supply of electric power, (3) to ensure transparent and reasonable prices of electricity in a regime of free and fair
competition and full public accountability to achieve greater operational and economic efficiency and enhance
competitiveness of Philippine products in the global market, (4) to enhance the inflow of private capital and broaden the
ownership base of power generation, transmission and distribution sectors and (5) to provide for an orderly and
transparent privatization of the assets and liabilities of the National Power Corporation. The act provided a framework
for the restructuring of the electric power industry, effectively privatizing the assets of the NPC, with the government
moving away from the construction of power generators and allowing the private entities invest more in a free market
and more competitive structure. For non-grid small islands, NPC maintains its generation thru its Small Power
Utilities Group (SPUG).
In 2008, the Philippines enacted the Republic Act 9511, which grants the National Grid Corporation of the Philippines
(NGCP) a franchise to engage in the business of conveying or transmitting electricity through the high voltage
backbone system of interconnected transmission lines, substations and related facilities being owned by the National
Transmission Corporation (TRANSCO). With the influx of economic investments, including the entry of generator
proponents, the transmission systems need to be reinforced, ensuring that the power is delivered to load centers, also
considering the strategic locations for tourism and other industries.
With more players and dynamism in the deregulated power industry versus the previous government energy power
model (NPC), planning has become more complex and strategies became diverse. Private generators propose site
locations based on feasibility and market perspective versus the previous the overall NPC way of power system
planning. Consequently, the NGCP has to provide new transmission facilities to accommodate the entry of generators
and have to reinforce the existing ones. Interconnection has become more challenging, especially with the high cost of
submarine cables traversing islands to islands.
The paper therefore presents more information about the challenges being faced by the Philippine transmission system,
specifically on the submarine interconnection and shall recommend several policies in order to minimize further issues
on transmission construction cost.
CHALLENGES IN THE ISLAND POWER INTERCONNECTION
Philippine Interconnection Master Plan. Figure 1 below shows the interconnection master plan for the Philippine
Grid. It intends to connect the main islands of the Philippines through submarine cables from Luzon to Visayas and
Mindanao. Majority of the interconnection are in the Visayas as the region consists of many islands and most of
which are either industrialized or commercial due to local tourism.
Figure 1. Master Plan on Island Interconnection.
Visayas Interconnection. Figure 2 below shows the island interconnection in the Visayas. Five (5) main islands
share power resources namely, Iloilo/Panay, Negros, Cebu, Leyte and Bohol. Cebu is considered the load center for
the region. Generators located in Leyte, Iloilo, Cebu and Negros deliver power to throughout the islands.
Challenges in the Interconnection. Figure 3 depicts the challenge in the interconnection. Once a generator is to be
installed in an island, such as in Iloilo/Panay, additional submarine cable needs to be installed in the Negros-Panay
interconnection as the generator will deliver power to the loads in Negros and Bohol. As the investment costs in the
submarine cable is high, involving millions of pesos, the problem is how to increase the generation, ensure power
delivery, but minimizing the cost of transmission expansions and new installations.. That is also to consider that the
ownership of generators are private and the transmission system is also managed by private corporations, as against to
the older practice that the government specifies the location of the generators and in parallel, plans the transmission
lines. What would then be the better strategy in order to provide better power and yet minimizing the need for more
submarine cable?
Table 1 shows the plans of installation of submarine cables in the Philippines as per the Transmission Development
Plan.
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Table 1. Submarine Cable Interconnection Construction and Proposals
in the Philippines as per TDP 2014-2015.
No.
Project Name
Purpose
1
Bataan-Cavite FS
2
Cebu-Negros-Panay 230
kV Backbone, Stage 1
3
Cebu-Lapu-lapu
Transmission line
Panay-Guimaras 138 kV
Interconnection Project
Support the Delivery of bulk generation from
Bataan Area to the load center in an alternate route.
To increase the capacity of the existing corridor and
maintain the N-1 contingency provision. The
Negros -Panay submarine cable component of the
project will be completed August 2016.
To increase transfer capacity of the existing corridor
and maintain the N-1 contingency provision.
The project is intended to ensure the full dispatch of
the San Lorenzo Wind and other prospective
generators in the area.
In line with the projected increase in the generation
capacity addition in Visayas, high-capacity
transmission facilities are proposed between Cebu,
Negros and Panay.
Project includes San
Carlos-Toledo CTS 230 kV Submarine Cable with
length of 22 km.
In line with the developments in the tourism
industry in Boracay Island, the power requirement
is expected to increase.
To meet projected
demand, additional substation and submarine cable
needs to be implemented. Stage 1 requires 2 km of
100 MW capacity of XLPE submarine cable system
at 138 kV.
The project will address the increasing demand and
improve reliability of power supply in Bohol island.
It will also serve as an alternative transmission
corridor between Cebu and Leyte/Samar Islands.
4
5
Cebu-Negros-Panay 230
kV Backbone Project,
Stage 3
6
Nabas-Caticlan-Boracay
Transmission Project
Stage 1 and Stage 2
7
Cebu-Bohol 138 kV
Interconnection Project
Figure 2. Visayas Power Grid and Interconnection
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Estimated Time of
Completion
December 2017
March 2014
September 2017
December 2019
December 2020
Stage1:
August 2019
Stage 2:
March 2022
December 2019
Figure 3.
Additional Generator in Iloilo/Panay requires additional submarine cable.
Moreover, the entry of renewable energy proponents in the Philippines upon the enactment of the Republic Act 9513,
known as the Renewable Energy (RE) Act of 2008, has encouraged more generation investments in the Philippines, and
therefore increased the challenges in the delivery of power. The Visayas Transmission Outlook of TDP 2014-2015
states the following: "In reference to the Department of Energy list, Cebu and Panay are the main sites for large
generation capacity additions specifically for coal fired power plant. For RE-based plants, on the other hand, it can be
observed that the concentration is in Negros and Panay Islands. Such direction of generation development would
further emphasize the need to reinforce the 138 kV submarine cable interconnections between Cebu, Negros and
Panay."
RECOMMENDATIONS
While submarine cables are clear options for power transmission in an archipelagic country like the Philippines,
detailed studies must quantify the feasibility of installation. Based from previous construction, the cost of submarine
cables has to be considered since it is very expensive. The following are the recommendations for consideration:
(1) Power Generation Self-Sufficiency of the Islands. The additional installations will be minimized by building
power generators (conventional and renewable) within the islands to support internal demand and not rely or depend on
the power exports of other islands. The cost of submarine cable installation along with the required facilities can
amount to one power plant being built inside the island.
(2) Island Reserve Sharing. A policy on island reserve sharing is necessary so that only a percentage of the total
excess generation reserve may be delivered to the other islands. Planning should not take into account the 100% of the
total generation reserve to be exported to other islands.
(3) Optimal Site Selection. The Department of Energy (DOE), thru a policy, must optimize the location of the
generators by letting the proponents adhere to the approved transmission master plan. Unlike today that the
transmission construction depends on the generator entry (i.e. transmission line to accommodate the generator power
delivery), the generator must look at the proposed locations identified by NGCP as areas that will be strengthened as per
the master plan.
(4) Closer Coordination Between Government and the Private Energy Companies. Government must take a
strong role in integrating the private generators and the transmission company so as to optimize the construction
planning for the grid. Construction of new transmission lines will be charged to the Philippine consumers and if the
planning is not very well coordinated, the public may end up paying dues which may have been prevented if
alternatives are studied. The policy of the transmission provider must consider optimizing the system, on top of the
intent to build more infrastructures.
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REFERENCES
[1]
[2]
[3[
Transmission Development Plan 2014-2015,
2014 2015, National Grid Corporation of the Philippines, 2015.
Republic Act 9316, Electric Power Industry Act of 2001, Congress of the Philippines,, 2001
2001.
Republic Act 9511, National Grid Corporation of the Philippines
Philippines Franchise Act, Congress of the Philippines,
2008.
AUTHORS
BIENVENIDO D. VALEROS is a senior technical manager of the National Transmission Corporation. He received
his Bachelor of Science in Electrical Engineering (BSEE) from the Mapua Institute of Technology (MIT), Master in
Business Administration (MBA) from Philippine Women's University (PWU) and holds the rank as CESO V. He
finished his Power System Control and Protection Course at the University of Texas in Arlington, Texas in 1991. He
has attended various local and international training programs. His experiences cover that of power system operations
and maintenance, metering and smart grid systems. He once served as Consultant and Technical Director of the Grid
Management Committee (GMC), Chairman of the Distribution Management Committee (DMC) and also manager of
the National Power Corporation of the Philippines.
JOHN C. PLACENTE is a government consultant of the National Transmission
Transmission Corporation
Corporation. He has BSc Electrical
Engineering (PLM) and BSc Mechanical Engineering (University of
of Cebu) degrees. He also has M
MSc Electrical
Engineering degree from the Mapua Institute of Technology and is currently completing his MBA studies in
Heriot-Watt
Watt University (Edinburgh, UK). He is
i a faculty member of Mapua and the National Universit
University in Manila.
Mr. Placente is a Professional Energy Manager (PEM, Institute of Energy Professionals, US) and a certified Project
Management Professional (PMP, Project Management Institute, US).
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