NGCP: P23.5 billion grid projects set for completion

The National Grid Corp. of the Philippines (NGCP) aims to complete six significant power transmission projects worth P23.5 billion by the end of this year, according to spokesperson Cynthia Alabanza. Despite these projects improving transmission reliability, Alabanza emphasized that they alone cannot address ongoing power supply shortages, as the transmission system can only deliver existing generated power.

In Luzon, NGCP plans to activate a P4.5-billion North Luzon substation upgrade project and a P3.5-billion Tuguegarao-Lal-lo 230-kV transmission line. The remaining Visayas projects to be finished this year include a P7.4-billion Nabas-Caticlan-Boracay transmission line and a P3.6-billion Panay-Guimaras 138-kV interconnection project. On Mindanao, the P3.7-billion Mindanao substation expansion 4 and a P872.5-million Nasipit substation bus-in project are underway.

NGCP continues to invest in its grid network, with new projects constantly entering the development stage. Alabanza revealed that throughout the year, the corporation has already completed five transmission projects amounting to approximately P7.2 billion. The NGCP operates under a 25-year concession and a 50-year franchise to manage and maintain the country's state-owned power grid, recovering investments through monthly transmission charges from consumers.

Consumers can anticipate lower transmission rates in September due to a decrease in ancillary service charges, which cover the cost of power reserves procured by NGCP to ensure grid reliability. In August, NGCP's overall rate declined by 13.3 percent to P1.52 per kilowatt-hour from P1.76 per kWh in the previous month, primarily due to a 22.4-percent reduction in ancillary service charges to P0.81 per kWh from P1.04 per kWh.