Connect with us

Hi, what are you looking for?

Economy

Mindanao power firms weigh in as NGCP transmission project faces delay

By Angelica Y. Yang

THE delay in critical transmission projects brought about by the latest travel ban will affect the operations of power generation companies in Mindanao, a power plant developer said.

This comes after privately owned National Grid Corporation of the Philippines (NGCP) earlier raised concerns that delays caused by the newest travel ban would hamper critical power transmission projects that had yet to be completed.

In a press release on Dec. 31, the firm said that the travel restrictions would slow down the vessels carrying transmission equipment for the submarine cable laying activity of NGCP’s Mindanao-Visayas Interconnection Project (MVIP). The project aims to unify the three grids across Luzon, Visayas, and Mindanao.

Global Business Power Corp. (GBP) Commercial and Sales Head Philip D. Dasalla said that MVIP’s completion would allow Mindanao firms to sell excess power to retail markets in Luzon and Visayas.

“The timely completion of MVIP is critical to the power industry as it will enable power generators in Mindanao such as our affiliate company, Alsons Thermal Energy Corp., which owns Sarangani Energy Corp., to sell excess capacities to wholesale and retail markets in Visayas and Luzon,” Mr. Dasalla told BusinessWorld in an e-mail on Thursday.

Asked whether the projected delay would impact GBP’s operations in selling excess power, he said that it would.

“Yes, as well as other power generation companies in Mindanao. Kindly note that the Mindanao grid has the highest reserve margin among the [three] grids,” Mr. Dasalla said.

Meanwhile, Aboitiz Power Corp., which operates the 300-megawatt (MW) coal-fired plant under Therma South, Inc. in Mindanao, said that it would not be affected by the reported delay of the MVIP.

“Specific to AboitizPower, we don’t expect our Therma South, Inc. (TSI) coal facility to be affected by the reported delay of the interconnection as our supply is transmitted only within the Mindanao grid and it is already fully contracted to distribution utilities in the region,” Aboitiz Power Corp. President and Chief Executive Officer Emmanuel V. Rubio told BusinessWorld in an e-mailed response on Thursday.

He added that NGCP needed the full support of the government to ensure that critical transmission projects in all three major islands, particularly those entering load centers in major cities, should get implemented on time to “sustain a stable and reliable energy supply and service for the country.”

For Alsons Consolidated Resources, Inc. Chairman and President Tomas I. Alcantara, the long-awaited interconnection of the Visayas and Mindanao grids through the MVIP would “greatly benefit” power consumers.

“While we fully support the national government’s efforts to protect the country from the new COVID-19 (coronavirus disease 2019) variant, we at Alsons share NGCP’s concern about possible further delays to the completion of the interconnection project as a result of the latest travel ban,” Mr. Alcantara said in an e-mailed response to BusinessWorld on Friday.

“We simply cannot have any further delays to this project as access to power is imperative to our country’s economic recovery,” he added.

AC Energy Corp. President and Chief Executive John Eric T. Francia said that the Mindanao-Visayas link was crucial in balancing power supply and demand in the country.

“Hopefully, the project will be completed in time for the expected economic recovery and resurgence in power demand,” Mr. Francia told BusinessWorld in a Viber response on Wednesday.

He further explained that Mindanao is in a position to provide power to Luzon and Visayas once the demand resurges, since it is “expected to be in an over-supply situation in the coming years.”

AC Energy is the majority stakeholder of the 552-MW thermal coal plant GNPower Kauswagan Ltd. Co. in Mindanao.

Last month, NGCP said that it understood the need to control the virus and protect the people. However, there must be “creative ways” to balance health concerns with keeping the economy afloat.

“NGCP’s critical projects cannot face any further delays as this may have an implication on the stability and reliability of power transmission services, especially with the growing demand for power,” the power grid operator said in a statement.

BusinessWorld reached out to NGCP for a comment on how long the projected delay for the MVIP would be, but has yet to receive a reply as of press time.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Foreign portfolio investments (FPI) yielded a net inflow in May, reflecting renewed optimism in the local economy as restriction measures were gradually lifted during...

Economy

Outsourcing firms in Philippine economic zones will need a long-term remote work considerations to remain competitive against other major outsourcing economies, an official from the industry group said.  ...

Economy

The World Bank approved a fresh $400-million loan for the Philippines which will be used to support financial sector reforms as the country recovers...

Economy

Philippine President Rodrigo R. Duterte on Thursday night urged the Congress to pass his administration’s last two tax reform bills.  In his speech during...

Economy

The prolonged COVID-19 pandemic is clouding economic projections for Southeast Asia, with most countries not expected to return to pre-pandemic growth levels for several...

Economy

US President Joseph R. Biden, Jr. has extended his sympathy over the passing of former Philippine President Benigno S. C. Aquino III, recognizing his efforts in promoting...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!