The Department of Energy (DOE) is optimistic the country’s overall power sector will further improve after the successful transmission line interconnection of the three main island grids as well as with the launch of the power reserves market.
This developed as the National Grid Corporation (NGCP) of the Philippines on Friday conducted a simultaneous ceremonial switch-on in Manila, Cebu and Lanao del Norte for the full commercial operations of the Mindanao-Visayas Interconnection project (MVIP).
“We are completing the mapping out of the critical transmission lines of NGCP and are coordinating with the local government units to avoid damage, accidental or otherwise, to the submarine cables in overland grid lines. The Cebu- Mindanao submarine cables make Cebu an even more critical hub for keeping the country’s power system interconnected. Cebu-Negros-Panay, Cebu-Bohol, Cebu-Leyte that eventually connects to Luzon via Samar,” said Energy Secretary Raphael Lotilla during the event.
The MVIP is a P51.3- billion, 184 circuit kilometer (ckm) high-voltage direct current submarine transmission line connecting the power grids of Mindanao and Visayas with a transfer capacity of 450 megawatts (MW) expandable to as much as 900 MW.
The project also includes converter stations in both regions and more than 500 ckm of overhead lines to facilitate the flow of electricity.
“The MVIP, which unites the Luzon, Visayas, and Mindanao grids, is identified as integral to
economic development through the delivery of stable power transmission services and
enabling of energy resource sharing. “Despite various challenges, remains committed
to the completion of this project which is a testament to our dedication and commitment to
fulfilling our mandate of improving, upgrading, expanding, and reinforcing the Philippine power
grid,” said NGCP, in a statement.
Meanwhile, the DOE said the reserve market’s full commercial operations was declared last Friday.
The agency said because of the said development, all power generation companies with generating capacity or units capable of providing ancillary services (AS) may now offer and sell AS even without an Ancillary Service Procurement Agreement with the NGCP.
AS are services needed to maintain balance in the power system to ensure normal frequency and voltage levels in response to demand changes, variability of renewable energy, and possible loss of a large generating unit.
“This (reserve market) will bring efficient dispatch of all available capacities by co-optimizing the capacity and price offers for energy and reserve to ensure that the required levels for both services are always met,” Lotilla said.
Lotilla added prior to the commercial operation of the reserve market, reserve levels of the three grids were below the prescribed levels and are not sufficient to ensure the system stability of the national grid.
