2013 TDP Consultation Draft_VolI-Major Network Development

2013 TRANSMISSION DEVELOPMENT PLAN

Consultation Draft Report December 2013

DISCLAIMER

The Transmission Development Plan (TDP) is prepared and published solely for information purposes. While NGCP, to the

best of its knowledge, has used the most accurate data available, and has used utmost prudence in the use of those information, nothing in this document can be or should be taken as a recommendation in respect of any possible investment or business decision. This document does not claim to contain all the information that a prospective investor or grid user or potential participant to the electricity market, or any other person or interested parties may require for making decisions. In preparing this document it is not possible nor is it intended for NGCP to have considered the investment objectives, financial situation and particular needs of each person who uses this document.

In all cases, anyone proposing to rely on or use the information in this document should independently verify and check the

accuracy, completeness, reliability and suitability of that information and the reports and other information relied on by NGCP in preparing this document, and should obtain independent and specific advice from appropriate experts.

In the same manner, NGCP does not make representations or warranty as to the accuracy, reliability, completeness or

suitability for particular purposes of the information in this document. Persons reading or using this document acknowledge that NGCP and/or its employees shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matter (expressed or implied) arising out of, contained in or derived from, or for any omissions from, the information in this document, except insofar as liability under any statute of the Republic of the Philippines cannot be excluded.

2013 TRANSMISSION DEVELOPMENT PLAN VOLUME I i

Foreword

The country’s unprecedented economic growth in the last two years amidst the frequent land fall of super typhoons necessitates developing a transmission system that is adequate, reliable and resilient. With this in mind, the National Grid Corporation of the Philippines (NGCP) presents the efficient planning for expansion, upgrading, rehabilitation, repair and maintenance of the national transmission system for the next ten years (2014-2023) in the 2013 Transmission Development Plan (2013 TDP) Volumes 1 to 3. All necessary infrastructures should be in place in order to sustain

the economic growth of the country. NGCP recognizes its crucial role in delivering these infrastructures on time. Thus, the 2013 TDP contains not only the list of new additional identified transmission infrastructures but also the status of the ongoing 3rd Regulatory Period (RP) projects and additional ERC-approved projects. NGCP has identified several transmission line projects that support the entry of conventional and renewable energy generators. New drawdown substations and associated transmission lines to increase the reliability of supply for the various load centers in Luzon, the Visayas and Mindanao are also included in the 2013 TDP. Some of these projects such as the Antipolo EHV Substation and the Cebu-Negros-Panay 230 kV Backbone were already approved by the ERC. NGCP recognizes the valuable inputs from the stakeholders in its planning process. As such, NGCP has refined its consultations with the customers, stakeholders and Department of Energy. The comments and suggestions that were gathered during these consultation processes were incorporated in the finalization of the 2013 TDP. NGCP is happy to note that most of these new projects will be included in the 4th RP filing of NGCP to the ERC. As a premier public utility, NGCP is committed to serve the country better amidst the challenges ahead.

Henry T. Sy, Jr. President & CEO

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Table of Contents CHAPTER 1: Preliminaries ............................................................................................................ 1

1.1 About NGCP ......................................................................................................................... 1 1.1.1 Organization and Operation .......................................................................................... 1 1.1.2 NGCP as a Regulated Entity ......................................................................................... 2

1.2 Content Overview ................................................................................................................. 2 CHAPTER 2: TDP Volume 1 Preparation Process ....................................................................... 5

2.1 Process Flowchart................................................................................................................. 5 2.2 Description of Each Step ....................................................................................................... 5 2.3 Use of the 2013 TDP in the Regulatory Reset Application ..................................................... 7

2.3.1 CAPEX Program for Major Network Development ........................................................ 7 CHAPTER 3: Assessment of Transmission System ................................................................... 9

3.1 Grid Profile ............................................................................................................................ 9 3.2 Dependable Capacity Mix ................................................................................................... 10 3.3 Features of the Transmission System ................................................................................. 12

3.3.1 Luzon .......................................................................................................................... 12 3.3.3 Visayas ....................................................................................................................... 15 3.3.4 Mindanao .................................................................................................................... 16

3.4 Overall System Need Assessment ...................................................................................... 17 3.4.1 Generation Adequacy ................................................................................................. 17 3.4.2 Transmission Congestion ............................................................................................ 18 3.4.3 Alternative to Address Transmission Congestion ........................................................ 18 3.4.4 Single Outage or N-1 Contingency Criterion ............................................................... 18

CHAPTER 4: Demand Projections and Capacity Additions ..................................................... 21 4.1 Final Determination on Demand Forecasts for the Third Regulatory Period ........................ 21 4.2 TDP Power Demand Projection........................................................................................... 21

4.2.1 Basis of the Transmission-level Forecast .................................................................... 21 4.2.2 Historical Demand for Electricity (2001-2013) ............................................................. 21

4.3 2013 TDP Projections ......................................................................................................... 24 4.3.1 Demand Projections for Substation Capacity Addition ................................................. 25 4.3.2 Demand Projections for Transmission Expansions ..................................................... 25

4.4 Generation Capacity Addition .............................................................................................. 25 4.5 Supply – Demand Outlook .................................................................................................. 30

4.5.1 Luzon .......................................................................................................................... 31 4.5.2 Visayas ....................................................................................................................... 33 4.5.3 Mindanao .................................................................................................................... 33

CHAPTER 5: Completed and Ongoing Projects for the 3rd Regulatory Period (2011-2015) ... 37 CHAPTER 6: 2014-2023 Transmission Outlook for Luzon ........................................................ 43

6.1 Introduction ......................................................................................................................... 43 6.2 Existing and Programmed Generation Capacity .................................................................. 43 6.3 North Luzon ........................................................................................................................ 44

6.3.1 Ongoing Transmission Projects for the 3rd Regulatory Period ..................................... 44 6.3.2 Transmission Project for Accelerated Implementation ................................................. 45

6.3.2.1 Balingueo (Sta. Barbara) 230 kV Substation ....................................................... 45 6.3.3 Proposed Transmission Projects for 2016-2023 .......................................................... 46

6.3.3.1 Western Luzon 500 kV Backbone (Stage 1) ....................................................... 47 6.3.3.2 Laoag-Bangui 230 kV Transmission Line ........................................................... 48 6.3.3.3 Bolo 500 kV Substation Expansion ..................................................................... 49 6.3.3.4 Nagsaag-Liberty 230 kV Transmission Line ....................................................... 49 6.3.3.5 La Trinidad-Sagada 230 kV Transmission Line (Initially Energized at 69 kV) ..... 50

iv 2013 TRANSMISSION DEVELOPMENT PLAN VOLUME I

6.3.3.6 Santiago-Dinadiawan-Baler 230 kV Transmission Line ...................................... 51 6.3.3.7 Mexico-San Simon 69 kV Transmission Line ...................................................... 51 6.3.3.8 Hermosa-Floridablanca 69 kV Line .................................................................... 52 6.3.3.9 San Simon 230 kV Substation ............................................................................ 53 6.3.3.10 Luzon Substation Expansion 5 ......................................................................... 53 6.3.3.11 Nagsaag – San Manuel 230 kV Tie Line Upgrading ......................................... 54 6.3.3.12 Magalang 230 kV Substation ............................................................................ 54 6.3.3.13 Pantabangan 230 kV Switchyard Upgrading .................................................... 55 6.3.3.14 La Trinidad-Calot 69 kV Transmission Line ...................................................... 55 6.3.3.15 Ilocos Region Substation Upgrading................................................................. 56 6.3.3.16 Cagayan Valley Substation Upgrading ............................................................. 56 6.3.3.17 Central Luzon Substations Upgrading .............................................................. 57 6.3.3.18 Gamu 230 kV Substation Expansion ................................................................ 57 6.3.3.19 Nagsaag 500 kV Substation Expansion ............................................................ 58 6.3.3.20 Currimao Substation Expansion ....................................................................... 58 6.3.3.21 Castillejos 230 kV Substation ........................................................................... 59 6.3.3.22 Hermosa–Clark 230 kV Transmission Line ....................................................... 59 6.3.3.23 Liberty-Baler 230 kV Transmission Line ........................................................... 60 6.3.3.24 Luzon Voltage Improvement 3 .......................................................................... 60 6.3.3.25 Tuguegarao-Lal-lo (Magapit) 230 kV Transmission Line ................................... 61

6.3.4 Overall Benefits After the Implementation of Proposed Transmission Projects for North Luzon ................................................................................................................. 62

6.4 National Capital Region ....................................................................................................... 63 6.4.1 Proposed Transmission Projects for 2016-2023 ........................................................... 63

6.4.1.1 Las Piñas 230 kV Substation Expansion ............................................................ 64 6.4.1.2 Pasay 230 kV Substation and Associated 230 kV Transmission Line ................. 65 6.4.1.3 Baras (Antipolo)-Taguig 500 kV Transmission Line (Initially Energized at 230 kV) and Taguig 230 kV Substation .............................................................. 65 6.4.1.4 Manila 230 kV Substation and Associated 230 kV Transmission Line ................ 66 6.4.1.5 Taguig-Alaminos 500 kV Transmission Line and Taguig 500 kV Substation (Metro Manila 500 kV Backbone Stage 2) .......................................................... 67 6.4.1.6 Hermosa-San Jose 500 kV Transmission Line ................................................... 67 6.4.1.7 Baras (Antipolo) 500 kV Substation .................................................................... 68

6.4.2 Overall Benefits after the Implementation of Proposed Transmission Projects for the National Capital Region ............................................................................................... 69

6.5 South Luzon ......................................................................................................................... 70 6.5.1 Ongoing Transmission Projects for the 3rd Regulatory Period ...................................... 70 6.5.2 Proposed Transmission Projects for 2016-2023 .......................................................... 71

6.5.2.1 Pagbilao 500 kV Substation ............................................................................... 72 6.5.2.2 Calaca-Dasmariñas 230 kV T/L .......................................................................... 73 6.5.2.3 Naga-Pili 69 kV Transmission Line Upgrading .................................................... 73 6.5.2.4 Malvar 230 kV Substation ................................................................................... 74 6.5.2.5 Lagonoy-Maligaya 69 kV T/L .............................................................................. 75 6.5.2.6 Eastern Albay 69 kV Transmission Line ............................................................. 75 6.5.2.7 Calamba 230 kV Substation ............................................................................... 76 6.5.2.8 Calaca 230 kV Substation Upgrading ................................................................. 77 6.5.2.9 Tiwi 230 kV Substation ....................................................................................... 77 6.5.2.10 Luzon Substation Expansion 6 ......................................................................... 78 6.5.2.11 Daraga-Ligao 69 kV Transmission Line Upgrading ........................................... 78 6.5.2.12 Bicol Region Substations Upgrading ................................................................ 79

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6.5.2.13 Calabarzon Substations Upgrading .................................................................. 79 6.5.2.14 Abuyog 230 kV Substation ............................................................................... 80 6.5.2.15 Luzon Voltage Improvement 4 .......................................................................... 80

6.5.3 Overall Benefits After the Implementation of Proposed Transmission Projects for South Luzon ................................................................................................................. 81

CHAPTER 7: 2014-2023 Transmission Outlook for the Visayas ............................................... 83 7.1 Introduction .......................................................................................................................... 83 7.2 Existing and Programmed Generation Capacity ................................................................... 83 7.3 Ongoing Transmission Projects for the 3rd Regulatory Period .............................................. 84 7.4 Transmission Project for Accelerated Implementation .......................................................... 86

7.4.1 Panay – Guimaras 138 kV Interconnection ................................................................. 86 7.5 Proposed Transmission Projects for 2016-2023 .................................................................. 87

7.5.1 Cebu – Negros – Panay 230 kV Backbone (Stage 2: Bato – Cebu 230 kV Transmission Line) ...................................................... 88 7.5.2 Eastern Panay 138 kV Backbone ................................................................................ 89 7.5.3 Cebu – Negros – Panay 230 kV Backbone (Stage 1: Negros – Panay Interconnection Upgrading Project) ................................... 90 7.5.4 EB Magalona – Cadiz 138 kV Transmission Line ........................................................ 91 7.5.5 SRP 230 kV Substation ............................................................................................... 91 7.5.6 Nabas – Caticlan 138 kV Transmission Line ............................................................... 92 7.5.7 Amlan-Dumaguete 138 kV Transmission Line............................................................. 92 7.5.8 Babatngon-Campetic 138 kV Transmission Line ......................................................... 93 7.5.9 Panay Substations Upgrading ..................................................................................... 94 7.5.10 Cebu Substations Upgrading .................................................................................... 94 7.5.11 Leyte-Bohol Line 2 .................................................................................................... 95 7.5.12 Kabankalan Substation Reliability Improvement ........................................................ 95 7.5.13 Leyte Substations Upgrading ..................................................................................... 96 7.5.14 Naga 138 kV Substations Upgrading ........................................................................ 97 7.5.15 Negros Substations Upgrading ................................................................................. 97 7.5.16 Babatngon – Sta. Rita 138 kV Line Upgrading .......................................................... 98 7.5.17 Samar Substations Upgrading Project ....................................................................... 98 7.5.18 Bohol Substations Upgrading .................................................................................... 99 7.5.19 Calbayog – Allen 69 kV Transmission Line ................................................................ 99 7.5.20 Cebu-Bohol 138 kV Interconnection Project ............................................................ 100 7.5.21 Visayas Voltage Improvement 1 .............................................................................. 101 7.5.22 Maasin – Javier 138 kV Transmission Line ............................................................. 101 7.5.23 Tagbilaran 69 kV Substation ................................................................................... 102 7.5.24 Bacolod – San Enrique 69 kV Line Reclassification ................................................ 102 7.5.25 Cadiz – San Carlos 69 kV Line Reclassification ...................................................... 103

7.6 Overall Benefits After the Implementation of Proposed Transmission Projects for the Visayas ........................................................................................................................ 104

CHAPTER 8: 2014-2023 Transmission Outlook for Mindanao ................................................ 105 8.1 Introduction ........................................................................................................................ 105 8.2 Existing and Programmed Generation Capacity ................................................................. 105 8.3 Ongoing Transmission Projects for the 3rd Regulatory Period ............................................ 106 8.4 Projects for Accelerated Implementation ........................................................................... 107

8.4.1 Toril 138 kV Substation ............................................................................................. 107 8.4.2 Opol 138 kV Substation ............................................................................................. 108 8.4.3 Agus 6 Switchyard Upgrading/Rehabilitation .............................................................. 108

8.5 Proposed Transmission Projects for 2016-2023 ................................................................ 109

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8.5.1 Balo-i-Villanueva-Maramag-Bunawan 230 kV Energization....................................... 110 8.5.2 Balo-i-Kauswagan-Aurora 230 kV Transmission Line (Phase 1 and Phase 2) .......... 111 8.5.3 Malita – Matanao – Bunawan 230 kV Transmission Line (Phase 1 and 2) ................ 112 8.5.4 Villanueva–Jasaan–Butuan 138 kV Transmission Line ............................................. 113 8.5.5 Central Mindanao Substations Upgrading ................................................................. 114 8.5.6 CARAGA Substations Upgrading .............................................................................. 114 8.5.7 Zamboanga Peninsula Substations Upgrading.......................................................... 115 8.5.8 Davao Region Substations Upgrading ...................................................................... 116 8.5.9 Balo-i-Tagoloan-Opol 138 kV Transmission Line ...................................................... 117 8.5.10 Agus 2 Switchyard Upgrading ................................................................................. 117 8.5.11 Tacurong–Sultan Kudarat 138 kV Transmission Line .............................................. 118 8.5.12 Tacurong-Kalamansig 69 kV Transmission Line ..................................................... 119 8.5.13 Agus 1 Switchyard Upgrading / Rehabilitation ......................................................... 119 8.5.14 Agus 5 Switchyard Upgrading / Rehabilitation ......................................................... 120 8.5.15 Pulangi 4 Switchyard Upgrading/Rehabilitation ....................................................... 120 8.5.16 Mindanao Power Circuit Breaker Replacement II .................................................... 121 8.5.17 Mindanao Voltage Improvement 1 ........................................................................... 121

8.6 Overall Benefits After the Implementation of Proposed Transmission Projects for Mindanao ........................................................................................................................... 123

CHAPTER 9: 2014-2023 Major Island/Grid Interconnections .................................................. 125 9.1 Island Interconnection ........................................................................................................ 125

9.1.1 Existing Island Interconnections ................................................................................. 125 9.1.2 Benefits of Island Interconnection .............................................................................. 125 9.1.3 Major Project Development Considerations for Island Interconnections ..................... 126

9.2 Transmission Backbone and Island Interconnection Projects for 2016-2023 ...................... 126 9.2.1 Batangas-Mindoro Interconnection Project (BMIP) .................................................... 130 9.2.3 Leyte-Mindanao Interconnection Project (LMIP) ........................................................ 131

CHAPTER 10: Appendices ........................................................................................................ 137 Appendix 1 – List of Official Site Names of Substations based on the Standard System of Site and Equipment Identification and Labelling (SEIL) – Rev. 4 ........................ 137

A1.1 Luzon ......................................................................................................................... 137 A1.2 Visayas ....................................................................................................................... 137 A1.3 Mindanao.................................................................................................................... 138

Appendix 2 – Grid Code Performance Standard ...................................................................... 139 A2.1 Voltage Variation ........................................................................................................ 140 A2.2 System Loss Standard ................................................................................................ 140 A2.3 Performance Indices ................................................................................................... 141

Appendix 3 – DOE List of Prospective Power Plants ................................................................ 142 Appendix 4 – Renewable Energy ............................................................................................. 144

A4.1 RE Development in the Philippines ............................................................................. 144 A4.2 RE Resources ............................................................................................................ 146

Appendix 5 – Climate Change Adaptation Measures in the 2013 Transmission Development Plan .............................................................................................. 150 Appendix 6 – Existing Island Interconnection ........................................................................... 152 Appendix 7 – Ideal Locations of Power Plants ......................................................................... 153 Appendix 8 – Residual Substransmission Assets (ANNEX “A” of ERC Resolution No. 04, Series of 2013) ................................................................................................... 155 Appendix 9 – Grid Development Map....................................................................................... 158 Appendix 10 – Abbreviations and Acronyms ............................................................................ 160 Appendix 11 – Contact Details ................................................................................................. 165

2013 TRANSMISSION DEVELOPMENT PLAN VOLUME I 1

CHAPTER 1: Preliminaries 1.1 About NGCP

1.1.1 Organization and Operation

As the sole Transmission Service Provider in the Philippines, NGCP is responsible for the safe and reliable transmission of electricity in response to system requirements and market demands:

a. From generator connection points to distribution network connection points and the direct

connection points of a number of large end-users; and b. Between the three major regions of the Philippines, namely: Luzon, the Visayas and

Mindanao, thereby improving reliability and providing adequate transmission capacity.

In order to undertake the above services, NGCP operates a substantial control and power delivery system, the key elements of which include:

a. High-voltage overhead transmission network including submarine cables, equipped with

protection system; b. The Supervisory Control and Data Acquisition (SCADA) system; c. Regional Control Centers; d. Numerous substations and switching stations, each of which is linked to the various Area

Control Centers as well as the National Control Center; e. Converter stations (HVAC - HVDC); and f. A comprehensive metering system at substations, and direct customer delivery points.

For business management purposes, NGCP’s obligations can be grouped into six (6) key service areas described as follows:

a. System Operations (SO): managing the national power grid, dispatching generation and

managing the system, including the arrangement for ancillary services; b. Network Reliability: providing the appropriate levels of network reliability in accordance

with the reliability requirements set forth in the Philippine Grid Code, (the “Grid Code”); c. Connection service: NGCP’s obligations, primarily to customers and prospective

customers (e.g. generators, distributors and large end users) to provide effective, timely and efficient connection services, including metering and relevant services;

d. Safety: NGCP’s obligations, primarily to its stakeholders (e.g. staff, other electricity industry employees and the community) to deliver its services with appropriate priority given to human safety;

e. Environmental: NGCP’s obligations, primarily to its stakeholders (e.g. the community and government) to deliver services in an environmentally responsible manner; and

f. Wholesale Electricity Spot Market (WESM): NGCP’s obligations in relation to the operation and development of the electricity market, by way of the provision of efficient and effective transmission services.

In addition, NGCP continues to operate sub-transmission facilities from high voltage delivery points to end users. These sub-transmission assets have been offered for sale to the distribution utilities in compliance with the requirement of Republic Act No. 9136 - Electric Power Industry Reform Act of 2001 or EPIRA.

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Pursuant to ERC Resolution No. 04 series of 2013 or the “Resolution Amending Resolution No. 26, Series of 2011”, the proposed extension of December 31, 2012 deadline for the disposal of Residual Sub-transmission Assets (RSTAs) was denied by the ERC, except for those listed in Annex “A”, which may be disposed until December 31, 2015. In the said Resolution, the ERC has also authorized NGCP and the Electric Cooperatives to enter into a Memorandum of Agreements for the amortization of uncollected Connection Charges/Residual Sub-transmission Charges (CC/RSTC), and further clarified that:

a. RSTAs with two or more connected DUs, other than those listed in Annex “A”, are

reverted to NGCP’s RAB effective January 1, 2013; and

b. Sub-transmission assets (CA and RSTA) with only one connected DU and/or directly connected load end-users shall continue to be sold/divested until further notice.

Annex “A” of ERC Resolution No. 04 series of 2013 is shown in Appendix 8.

1.1.2 NGCP as a Regulated Entity

With the enactment of the EPIRA into a law in June 2001, the Philippine Electricity Industry was subdivided into four sectors: generation, transmission, distribution and supply. Each sector is distinguished as different business activity. The transmission and distribution sectors exhibit natural monopoly characteristics, hence these are regulated. Generation and supply or the aggregators for the sale of electricity, on the other hand, operates under a competitive environment. As the transmission service provider, NGCP is regulated under the performance-based ratemaking (PBR). The PBR is a form of utility regulation that strengthens the financial incentives to provide efficient service. The PBR methodology is outlined in the Rules for Setting Transmission Wheeling Rates or RTWR. In its effort to continuously provide quality and efficient service, NGCP received its Integrated Management System (IMS) certification on June 19, 2012 from TUV Rheinland Philippines, a third-party auditing firm specializing in international standards accreditation. The country’s sole transmission service provider and power system operator was certified in three management systems: Quality Management System – ISO 9001:2008, Occupational Health and Safety Management System – OHSAS 18001:2007 and Environmental Management System – ISO 14001:2004.

1.2 Content Overview

The 2013 TDP consists of three volumes. Volume I contains the proposed grid expansion and upgrades, which generally, are based on the results of system studies. The other volumes outline the capital expenditure programs of Operations and Maintenance (Volume II–Part 1) and System Operations (Volume III). Those for metering services have been integrated into Volume II but in a separate report (Volume II-Part 2).


Volume I consists of ten chapters.

Chapter 1 provides an overview of NGCP organization and operation as transmission service provider and a regulated entity;

Chapter 2 discusses the steps in the TDP Preparation Process; Chapter 3 discusses the features of the existing transmission network, from the profile

of each grid to the assessments on the development of the grid based on the identified existing and potential problems/constraints/issues in the system;

Chapter 4 presents the latest demand projections and generation capacity addition

used by NGCP as input to the simulation studies to identify future transmission constraints and transmission expansions in each grid. Also included in this chapter is the supply-demand outlook of each grid for the 10-year planning horizon;

Chapter 5 enumerates the projects that were completed from 01 January 2011 to 31

December 2013, including the ERC-approved projects for the 3rd Regulatory Period in Luzon, the Visayas and Mindanao Grids that are in various stages of implementation;

Chapter 6-9 discusses transmission outlook for 2014-2023 including the approach in the

preparation of system modeling used in the simulation studies. It also includes discussion on project details/drivers for both on-going and proposed transmission projects for Luzon, the Visayas and Mindanao Grids including Major Island/Grid Interconnection projects; and,

Chapter 10 contains different appendices that include discussions on relevant topics

such as the Grid Code performance standards, Power Development Plan (PDP) update and prospective plants, Renewable Energy, ideal locations of power plants, Grid Development Map and the latest policy on the disposal of sub-transmission assets and those that will be included in NGCP’s Regulatory Asset Base (RAB).




CHAPTER 2: TDP Volume 1 Preparation Process 2.1 Process Flowchart The TDP Volume 1 preparation process being adopted by NGCP is illustrated in Figure 2.1.

Figure 2.1 - TDP Preparation Process

2.2 Description of Each Step Step 1: Receive inputs from the DOE The System Peak Demand Forecast and the Generation Capacity Addition Line-up are the two major inputs in the TDP which come from the DOE. These inputs are being updated annually by the DOE. For use in the transmission network analysis, the system peak demand forecast shall be broken down and forecasted into individual transformer loads. For determination of load-end substation expansion requirements, on the other hand, NGCP’s own non-coincident substation peak loading forecast is being used. For the draft 2013 TDP, NGCP’s own system peak demand forecast was used for the transmission network analysis. Once the DOE’s updated system peak demand forecast becomes available, sensitivity analysis is conducted for the two forecast levels. If the forecast levels of NGCP and DOE have significant difference, the possible effect is on the need date or the expected target completion (ETC) of the forecast-sensitive projects.


Step 2: Coordination with Customers and other Stakeholders

One of the requirements of EPIRA as regards the preparation of the TDP is the conduct of consultation with the electric power industry participants. NGCP regularly conducts Customers Interface Meetings to gather inputs from the Distribution Development Plans of the Distribution Utilities, expansion programs of Generator Companies and other directly connected customers. In addition, coordination meetings with other stakeholders are also being conducted.

Step 3: Preparation of the draft TDP

The identification of system requirements for the next ten years involves the conduct of load flow, short-circuit, and transient stability studies using special software in power system simulation. These assessments are made in reference to the planning criteria and limits prescribed in the Philippine Grid Code (PGC). The system assessment takes off from the model of the existing transmission network. Then using the updated system peak load forecast, which is disaggregated into per substation transformer level and the recent list of generation capacity additions, the network model for the next ten-year period as covered by the TDP will be developed. Resulting transmission line loading, grid transformer loading, fault level at the substations, voltage profile and system response to disturbance can be evaluated. The next step would be the assessment of the various solutions to the identified network problem which may be in the form of a new transmission line, transmission line upgrading, new substation or substation expansion, PCB replacement, installation of reactive power compensation equipment, and/or transmission network reconfiguration project. One important consideration in the identification of projects is the overall long-term transmission backbone development for each grid. Some projects may have to be implemented by stages or may be initially energized at lower voltage level but will remain consistent with the target end-state of the grid. The selected solution from the network analysis will form part of the documentation of the TDP. In the case of expansion plans for load-end substations, a direct comparison of the existing substation capacity and the load forecast would already result in the determination of capacity addition projects to meet load growth both during normal and single-outage contingency conditions of the transformers. The transformer addition projects, however, would also take into account the sizing and age of the existing units, optimization as well as the space limitation issues in a substation. Moreover, development of a separate new substation is also an option in lieu of further expanding the transformer capacity at the existing locations. Under this case, system simulation studies will be required to fully assess the need for new substation nodes in the grid.

Step 4: Presentation of the TDP Draft Report to Stakeholders

This step is still part of the consultation process with the stakeholders as required by the EPIRA. Stakeholders are given the opportunity to raise comments and suggestions on the proposed transmission network developments as contained in the TDP.


Step 5: Submission of the TDP Final Report to the DOE

As provided in the EPIRA, the TDP shall be submitted to the DOE for approval and for integration in the Power Development Program (PDP) and the Philippine Energy Plan (PEP). 2.3 Use of the 2013 TDP in the Regulatory Reset Application The 2013 TDP will serve as the reference plan in the Fourth Regulatory Period (2016-2020) reset application of NGCP. While the TDP already provides the long list of projects needed by the network, project prioritization and project ranking would be another important process and a separate exercise during the capital expenditure (CAPEX) application. This will involve further assessment on the probability of contingency events, assessment of the impact if a project is not implemented, market impact assessment and other sensitivity analyses.

2.3.1 CAPEX Program for Major Network Development The proposed major transmission projects for the period 2014-2023 under the 2013 TDP Volume 1, of which components are shown in Chapters 6, 7, 8 and 9, were based on the selected implementation scheme after considering all the technically feasible alternatives. The project components were identified after line routes, substation sites evaluation and selection, and other initial field investigations were already conducted. A least-cost development approach was also applied consistent with various NGCP Planning and Design Standards utilizing the cost estimate database derived from completed projects and/or prices of materials and equipment obtained through canvass. Similar to the 2005 and 2009 TDPs which were used as references in the rate applications for 2nd and 3rd RPs, respectively, the ten-year CAPEX Program of NGCP for Major Network Development was not included in the documentation of the 2013 TDP Volume 1. However, a more detailed five-year CAPEX Program will be included in the 4th regulatory reset application with other relevant information that are necessary for a more extensive review and evaluation by the ERC following the transparency provision for a prudent CAPEX in the RTWR.




CHAPTER 3: Assessment of Transmission System 3.1 Grid Profile

As of 30 June 2013, the transmission assets comprised of 19,425 circuit kilometers (ckt-km). About half of these assets or 9,439 ckt-km are in Luzon. 4,840 ckt-km form parts of the Visayas Grid and the remaining 5,146 ckt-km are in Mindanao. Roughly 76% (21,110 MVA) of the total 27,931 MVA substation capacities installed are in Luzon. The Visayas account for 3,504 MVA and Mindanao 3,318 MVA. These figures exclude transmission lines and transformer assets which had been decommissioned already.

Table 3.1: Summary of Existing Facilities

SUBSTATION CAPACITY (IN MVA)

2009 2010 2011 2012 2013

PHILIPPINES 23,873 25,842 26,796 27,726 27,931

Luzon 18,452 19,937 20,589 21,170 21,110

Visayas 3,161 3,263 3,414 3,414 3,504

Mindanao 2,260 2,643 2,793 3,142 3,318

TRANSMISSION LINE LENGTH (IN CKT-KM)

2009 2010 2011 2012* 2013*

PHILIPPINES 19,425 19,575 19,704 19,490 19,425

Luzon 9,568 9,638 9,529 9,374 9,439

Visayas 4,600 4,680 4,918 4,971 4,840

Mindanao 5,257 5,258 5,257 5,145 5,146 *There was a decrease in total transmission line length in ckt-km due to modification and divestment of various sub-transmission assets.

To ensure that voltages across the network are within the levels prescribed in the Grid Code, capacitor banks and shunt reactors have been installed in appropriate locations in different parts of the region. Currently, a total of 1,198.2 MVAR capacitors banks is installed and distributed as follows: 657.5 MVAR in Luzon, 270.7 MVAR in the Visayas, and 270 MVAR in Mindanao. These exclude the capacitors banks at the Naga Converter Station, which provides the MVAR requirements thereat. Regarding the installed shunt reactors, 905 MVAR in Luzon, 575 MVAR in the Visayas and 37.5 MVAR in Mindanao, which has a total of 1,518 MVAR for the whole Philippines.

The dependable capacity indicated in the following sections is based from the DOE list of existing plants as of November 2013. The DOE defines “dependable capacity” as the maximum capacity a power plant can sustain over a specified period modified for seasonal limitation less the capacity required for station service and auxiliaries.


Coal 34%

Hydro 20%

Natural Gas 18%

Oil-Based 18%

Geothermal 10%

Biomass 0% Wind

0% Solar 0%

Philippines

Coal

Hydro

Natural Gas

Oil-Based

Geothermal

Biomass

Wind

Solar

3.2 Dependable Capacity Mix

The Philippines has a total dependable capacity of 15,193 MW based on the DOE list as of November 2013 including embedded generation. 34% (5,206 MW) of the capacity comes from coal-fired power plants (CFPP) and 20% (2,984 MW) comes from the hydroelectric power plants (HEPP). Natural gas, oil based and geothermal power plants accounts for 18% (2,760 MW), 18% (2,688 MW) and 10% (1,462 MW), respectively. Wind Farms, Solar PV and Biomass power plants

have dependable capacity of 17 MW, 1 MW and 76 MW, respectively.


0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

12000

Luzon Visayas Mindanao

Renewable

Biomass

Hydro

Geothermal

Natural Gas

Oil-Based

Coal

Figure 3.2: Dependable Capacity Mix for Luzon, the Visayas and Mindanao

Table 3.2: Existing Dependable Capacity (Based on the DOE List of Existing Power Plants as of Nov. 2013)

Power Plant Type / Fuel Source / RE Source

LUZON VISAYAS MINDANAO

MW % MW % MW %

Conventional Power Plants 8,663.8 1,283.2 707

Coal 4,219 37.2% 776.8 36.9% 210 13%

Diesel / Oil 1,685.8 14% 505.4 24% 497 29.1%

Natural Gas 2,759 24.3% 1 0% - -

RE-Based Power Plants 2,785 820.1 934.4

Wind 17.4 0.2% - - - -

Solar PV - - - - 0.3 0%

Biomass 34.1 0.3% 32.3 1.5% 10 0.6%

Geothermal 586.9 5.2% 777 36.9% 98 6.1%

Hydro 2,146.6 18.9% 10.8 0.5% 826.1 51.2%

TOTAL 11,448.7 2,103.3 1,641.4


3.3 Features of the Transmission System 3.3.1 Luzon

In Luzon Grid, the bulk generation sources are located in the northern and southern parts of the Luzon Island while the load center is in the Metro Manila area. The aggregate demand of Metro Manila accounts for about 53% of the total demand in Luzon. Because of this system configuration, the transmission backbone must have the capability to transfer bulk power from both the northern and southern parts of Luzon.

Northern Transmission Corridor The transmission corridor consists of several flow paths for transferring power from the generation sources located in Northern Luzon to Metro Manila.

Figure 3.3 – Northern Transmission Corridor

The 500 kV double-circuit Bolo-Nagsaag-San Jose is rated at 2,850 MVA per circuit and is capable of transferring more than 1,800 MW generation from Masinloc and Sual CFPP to Metro Manila. The Bolo and Nagsaag 500 kV Substations are the receiving ends of generation from the north. The power is then delivered to Metro Manila mainly via Mexico and San Jose Substations.

Legend: 230 kV 500 kV


Other underlying paths are the 230 kV transmission lines:

a. Labrador to Hermosa single circuit line; b. San Manuel – Concepcion - Mexico double-circuit line; and c. San Manuel – Pantabangan – Cabanatuan – Mexico single-circuit line.

The upgraded San Manuel-Concepcion-Mexico 230 kV line is an alternate corridor which also caters the generation capacity of the HEPP delivering power to San Manuel 230 kV Substation.

Southern Transmission Corridor The southern portion of the 500 kV transmission backbone stretches from Naga Substation in Bicol Region to Tayabas, Quezon. Tayabas is also connected to San Jose thereby completing the link between the north and south 500 kV transmission corridors.

Figure 3.4 – Southern Transmission Corridor

The 500 kV backbone segment from Tayabas to Naga Substation is currently energized at 230 kV. The Naga Substation is also the termination point for the HVDC Interconnection System that could allow the exchange of up to 440 MW between Luzon and the Visayas Grids. The 500 kV backbone in the south facilitates the transfer of about 2,400 MW from Ilijan Natural Gas, Pagbilao and QPPL CFPP. The 230 kV transmission system in Batangas and Laguna area caters about 2,100 MW total generation capacity of Calaca CFPP and the other Natural Gas Plants (San Lorenzo and Sta. Rita). From Tayabas Substation, the 500 kV backbone also stretches to Dasmariñas Substation which serves as a drawdown substation for the loads in the south of Metro Manila.

Legend: 230 kV 500 kV


Metro Manila As the center of commerce and trade, it is inevitable that the demand within Metro Manila will continue to grow, thus necessitating the expansion and/or building of new substations. The National Capital Region (NCR) accounts to more than half of the total load in Luzon but only relies on the import of power coming from the north and south Luzon. One geographical feature of Metro Manila is its narrow land area between Manila Bay and Laguna Lake, which is only about 10 km wide. Upon the completion of the Antipolo 230 kV Substation, it will cater to the demand increase in Metro Manila and reduce the loads at Doña Imelda and Taytay Substations, which have expansion constraints.

Figure 3.5 – Metro Manila Transmission Network Presently, there are three main load sectors within Metro Manila as follows:

a. Sector 1 is served through Quezon, Paco and Marilao Substations. Both Paco and Marilao Substations are MERALCO-owned;

b. Sector 2 is served through Taytay and Imelda 230 kV Substations; and c. Sector 3 is served through Muntinlupa and Las Piñas 230 kV Substations.

The major supply lines for both Quezon and Taytay are the double-circuit 230 kV line from San Jose as these substations rely heavily on the supply from San Jose 500 kV Substation.

In the south, the power requirements are being drawn from Dasmariñas 500 kV Substation and from power plants directly connected to the 230 kV system. Las Piñas is connected through a double circuit 230 kV radial line from Dasmariñas, while Muntinlupa has four-circuit supply line from Biñan.


3.3.3 Visayas The Visayas transmission system is divided into five different sub-system or sub-grids: Panay, Negros, Cebu, Bohol and Leyte-Samar. The sub-grids are interconnected by submarine cables: Leyte-Cebu (2x185 MW), Cebu-Negros (2x90 MW), Negros-Panay (1x85 MW) and Leyte-Bohol (1x90 MW). These submarine cables provide the capability of sharing excess generation between islands to accommodate the Visayas’ growing demand. The transmission backbone of the Visayas Grid extends from Allen Cable Terminal Station in Samar, all the way to Nabas Substation in Panay. This power delivery system comprises approximately 895 kilometers of transmission lines.

Figure 3.6 – Visayas Transmission Network

The bulk of installed generation capacity in the Visayas is located in Leyte and Cebu due to the entry of Cebu Energy Development Corporation (CEDC) and KEPCO-Salcon Power Corporation (KSPC) CFPP, which adds 446 MW capacity in Cebu. This changed the load flow in the Visayas Grid as Cebu has reduced reliance in the importation of power from Geothermal Power Plants in Leyte. The Calung-calung-Colon-Cebu 138 kV Transmission Line Project is being implemented to fully accommodate the capacity of CEDC and KSPC CFPP. Cebu also exports power to Negros, which lacks inland generating plants.

Western Visayas

Area (District 4), the

Panay Island

Island of Negros

(District 3)

Central Visayas Area (District

2), which is composed of Cebu

and Bohol

Eastern Visayas Area

(District 1) composed of

Leyte and Samar

Legend: 138 kV


Eastern Visayas (District 1) is composed of Leyte and Samar Islands. Leyte remains the power supplier to Samar and Bohol Islands through the single-circuit Ormoc-Babatngon and Ormoc-Maasin 138 kV lines, respectively. Outage of the said lines will result in power interruption in the affected island. Thus, projects intended to provide single outage contingency or N-1 for the said lines are currently ongoing. It also has a 230 kV interconnection to Cebu enabling the other islands to source power from cheaper geothermal resources. Leyte is the site of 588 MW geothermal resources that comprise about 28% of the total dependable capacity in the Visayas. Central Visayas (District 2) is composed of Cebu and Bohol. Cebu can be well considered as the major load center of the Visayas Grid. In 2012, it has a coincident peak load of 704 MW which accounted for 48% of the grid’s total demand. Bohol has the lowest peak load among sub-grids with 62 MW (4.19%) in 2012, and with only about 23.7 MW dependable generation capacity. In the Island of Negros (District 3), the load center is located in Bacolod City in the northern part, while the bulk of generation is in the southern part.

Panay Island (District 4) had been reliant to oil-based plants until the entry of Panay Energy Development Corporation (PEDC) 164 MW CFPP. Panay became less reliant on imported power via the 138 kV Negros-Panay Interconnection System and, at certain times, also exports power to Negros.

3.3.4 Mindanao

The Mindanao transmission system is composed of six Districts: North Western Mindanao Area (District 1 – NWMA) covers Zamboanga area and Misamis Occidental, Lanao Area (District 2 - LA), North Central Mindanao Area (District 3 - NCMA) includes the provinces of Bukidnon and Misamis Oriental, North Eastern Mindanao Area (District 4 - NEMA) comprised of Agusan and Surigao provinces, South Eastern Mindanao Area (District 5 - SEMA) is the Davao Region, and South Western Mindanao Area (District 6 - SWMA) consists of South Cotabato, Cotabato, Sultan Kudarat, Saranggani and Gen. Santos (SOCCSKSARGEN) and Maguindanao. While the bulk of power generation is situated in the northern part of the island, the load centers are located in southeast (Davao provinces) and southwest (SOCSKSARGEN) regions. Power demand from these areas accounts for approximately half of Mindanao’s total demand of the island. Given this power supply-demand characteristics, much of the power flows from north to south through the Balo-i-Tagoloan-Maramag-Kibawe 138 kV transmission corridor. This is being reinforced by Balo-i-Villanueva-Pulangi-Bunawan backbone that is designed at 230 kV which will be initially energized at 138 kV. Aside from the 230 kV Mindanao Backbone Transmission Project, Mindanao Grid comprises mostly of 138 kV transmission corridors, with 69 kV radial lines that traverse from the main substations to load-end substations. Three 138 kV transmission corridors emanate from the Lanao Area, where the biggest chunk of power supply for Mindanao is generated. Currently, the Mindanao system is relatively more stable in the northern part of the island in terms of voltage and frequency variation even during disturbances. However, it experiences a combination of high and low voltages during peak or off-peak load conditions particularly in the


North Eastern and South Eastern areas. The low voltage in some substations during peak condition can be attributed to the long 138 kV lines and limited local generation. Low voltages can also be experienced at the far end of the 69 kV systems during peak conditions.

Figure 3.7 – Mindanao Transmission Network

3.4 Overall System Need Assessment Ideally, the generation development in each grid should meet the increase in demand such that the reserve level requirement is always maintained. 3.4.1 Generation Adequacy

The private sector’s response in putting up the required supply to meet the ever-increasing demand is not the same in all regions. In Luzon, the large baseload power plants with a total installed capacity of more than 2,300 MW were commissioned in the period 2002-2003. These were followed 9 years later by 652 MW Mariveles CFPP in 2012-2013.

Legend: 138 kV


In Mindanao, the main problem is the deficiency in power generation. Unless new power plants are connected to the grid, the island will continue to experience power shortage especially during long dry season due to its high dependence on hydroelectric power resource (refer to Supply-Demand outlook).

3.4.2 Transmission Congestion In the Visayas, committed and indicative power plants are proposed to be located outside the major load centers. Based on the list in the 2012 PDP Update of the DOE, an aggregate installed capacity of about 541 MW will be in Panay Island. This will result in excess generation capacity since Panay Island has peak demand of only around 272 MW in 2012 and 3.64% AAGCR for the period 2014-2023. The excess generation capacity cannot be transmitted to nearby Negros Island due to the limited transfer capacity of the existing 138 kV submarine cable. Possible siting of power plants near the major load centers in the country, i.e., Metro Manila, Metro Cebu and Davao is actually ideal in order to reduce the need for major transmission reinforcement to address congestion. However, the existence of heavily built up or congested areas coupled with high cost of real estate would make the implementation of generation solution difficult. Therefore, NGCP currently faces big challenge in managing transmission congestion primarily due to the problem in acquiring right-of-way (ROW) for the new overhead transmission lines and space constraints in existing substations, more specifically within Metro Manila which is highly urbanized and, thus has limited land area for development of transmission corridors. Moreover, the timing of grid reinforcements to meet the aggressive timeline of new power plant projects is also among the issues that need to be addressed.

3.4.3 Alternative to Address Transmission Congestion

Considering the sizeable capital expenditures involved in the upgrading of submarine cable interconnections, in the case of the Visayas region, NGCP sees the need to identify the locations of proposed capacity additions to maintain the supply-demand balance in each grid. This is crucial in deciding whether or not a transmission solution, which entails upgrading the submarine cable interconnections to fully allow import and export of power between islands, is more economically viable. In Appendix 7, NGCP suggests the ideal locations of power plants in Luzon, the Visayas and Mindanao which will not result in any significant transmission reinforcements. This would serve as a guide to the proponents in siting their power generation projects.

3.4.4 Single Outage or N-1 Contingency Criterion

The manner of provision of single outage or N-1 contingency is also another issue that needs to be addressed. As such, the application of this criterion in submarine cables is whether or not the provision of a spare cable per circuit would suffice. In general, for overhead transmission lines and substations in Luzon, the Visayas and Mindanao Grids, the provision for N-1 contingency is gradually being implemented considering the prudent utilization of allotted resources.


In Luzon, the committed and proposed transmission projects are intended to address load growth and entry of additional power generation and at the same time, improve system reliability. These projects include the establishment of 500 kV backbone, construction of new 230 kV drawdown substations or expansion of existing ones, upgrading of existing power plant’s switchyard, and construction of new and upgrading of existing 230 kV and 69 kV transmission lines. In the Visayas, committed and proposed system reliability improvement projects will also accommodate entry of generation, address load growth including projects intended to comply with statutory requirements. These projects include 230 kV and 138 kV backbones, 138 kV and 69 kV transmission lines, reconfiguration of existing substation and installation additional step-down transformer to directly serve both load and generation customers. Similarly in Mindanao, most of the committed and proposed projects that will improve system reliability would also address load growth and accommodate entry of power generation. Such transmission projects include 230 kV and 138 kV lines, new 138 kV drawdown substation and existing substation reinforcements, upgrading/rehabilitation of existing switchyards including replacements of underrated Power Circuit Breakers (PCB).




CHAPTER 4: Demand Projections and Capacity Additions

The two important input parameters in the preparation of the TDP are the updated annual peak demand forecast and generation capacity addition listed in the 2012 PDP Update. 4.1 Final Determination on Demand Forecasts for the Third Regulatory Period

In the Final Determination (FD) of NGCP Maximum Allowable Revenue (MAR) for the Third Regulatory Period (2011-2015), the ERC adopted System Peak Demand (SPD) forecasts prepared by NGCP and the DOE. Through comparisons with short-term (3 years) and long-term (9 years) historical trends, the ERC determined the most appropriate per-grid projections among the forecast scenarios of NGCP and DOE. The ERC also considered possible supply-side constraints that may suppress demand growth during the five-year Regulation Period. Upon evaluation, the ERC adopted the NGCP forecasts for Luzon and Mindanao and the DOE forecast for the Visayas. The annual peak demand forecasts adopted by the ERC are shown in Table 4.1.

Table 4.1 Demand Forecasts Adopted by the ERC for 2011-2015

GRID 2011 2012 2013 2014 2015

Luzon 7,364 7,604 7,849 8,097 8,347

Visayas 1,448 1,486 1,545 1,603 1,666

Mindanao 1,381 1,443 1,507 1,577 1,643

TOTAL 10,193 10,533 10,901 11,277 11,656

4.2 TDP Power Demand Projection The demand forecast for the 2013 TDP adopts NGCP’s own macro-level projections based on the aggregate output of Grid-connected and embedded generators.

4.2.1 Basis of the Transmission-level Forecast

The Forecast was prepared by applying econometrics on a per Grid Level and is comparable with the forecast prepared by DOE. The explanatory variable used to forecast the SPD is the Gross Regional Domestic Product (GRDP) per Region. Available data for GRDP at constant 2000 prices started only in 2010. The historical GRDP was derived using coefficient ratio of GRDP per region to the total Gross Domestic Product (GDP) based on actual data of 2010-2012. Available forecast from the International Monetary Fund for GDP was also applied in the Regression Analysis to derive the projections for the SPD.

4.2.2 Historical Demand for Electricity (2001-2013)

Total SPD (in MW, non-coincident sum) of the Philippines has consistently increased annually in the period 2001-2013 with an Average Annual Compounded Growth Rate (AACGR) of 3.6%. Total demand growth was at its highest in 2010 (at 9.53%) while it was at its most sluggish in 2011 (at 0.04%). This was mainly due to the colder temperature experienced in 2011 brought about by the La Niña phenomenon.


5,646

5,823

6,149

6,323

6,479

6,466

6,643

6,674

6,928 7,656

7,552 7,889

8,305

5000

5500

6000

6500

7000

7500

8000

8500

The following shows the peak demand for the three Grids (Luzon, Visayas, Mindanao) from 2003-2013. These do not include demand from embedded generators that were not synchronized with the Grid.

The Luzon Grid has posted an AACGR of 3.29% for the period 2001-2013. Consistent steady growth has been recorded for the Luzon Grid except for the decrease in demand observed in 2006 and 2011. This was due to the reduction in the power consumption of MERALCO for the two periods brought about by the effect of the global financial crisis in 2006 and the effect of La Niña phenomenon experienced in 2011. MERALCO’s demand accounts for at least 70% of the total SPD in Luzon. Further, demand growth in 2010 has been unprecedented (10.5%) – similar double-digit growth was also observed in MERALCO’s franchise area. This was attributed to increased economic activity brought about by election spending and the higher-than-average growth in GDP for the year. Also, the prolonged hot temperature experienced during summer may have contributed to the unusual upsurge in the Luzon SPD. Note however that this demand growth has not been sustained in the first half of 2011 (when Luzon usually registers its annual peak) - in fact, SPD has fallen by 1.36%. In 2013, the recorded SPD grew by 5.27% from the recorded level in 2012. This was brought about by prolonged hot weather and improved economic activities.

Fig. 4.1: Luzon Historical Peak Demand (2001-2013)


939

957

923

955 967

997 1,102

1,176 1,241

1,431 1,481

1,551

1,572

800

900

1000

1100

1200

1300

1400

1500

1600

1700

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Fig. 4.3: Mindanao Historical Peak Demand (2001-2013)

954

995 1,131

1,177

1,149

1,228

1,241

1,204 1,303

1,288 1,346

1,321 1,428

900

1000

1100

1200

1300

1400

1500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

The Visayas Grid has posted an AACGR of 5.90% for 2001-2013, the highest among the three Grids. This is largely due to the strong economic growth in the region. The fastest demand expansion has been recorded in distribution utilities in Panay, Cebu and Bohol. In 2010, Visayas registered its highest single year increase in demand levels (equivalent to 15.3% growth). Apart from increased economic activity, relief from generation deficiency in previous years may have also pushed the demand to record levels.

In 2013, the observed SPD for Visayas grew by a meager 1.35% or an equivalent increase of 21 MW compared with the recorded level in 2012. The peak demand was recorded in May. Historically, Visayas peak demand occurs in the last quarter of the year. However, in 2013, peak demand did not occur in this period due to the massive devastation brought about by Typhoon “Yolanda” that hit the Visayas area in November.

The Mindanao Grid has posted an AACGR of 3.28% for 2001-2013. After recording high annual growth rates from 2000 to 2004 (an average of 5.76%), demand growth has been sluggish from 2005 to 2010 due to the overall reduced power requirement from large non-utility customers. From 2004 onwards, the historical growth in the Mindanao Grid has been volatile with alternating periods of increase and decline.

Fig. 4.2: Visayas Historical Peak Demand (2001-2013)


In the recent years, demand dropped in 2008, 2010 and 2012. 2008 was characterized by the large decrease in the demand of non-utility customers, possibly a direct effect of the global financial crisis which adversely affected exporting industries. On the other hand, suppressed generation impeded demand growth in 2010 and 2012. This is due to the El Niño phenomenon that hampered hydropower generation, which comprises about half of the Grid’s installed capacity.

4.3 2013 TDP Projections

Table 4.2: Summary of Projected Demand per District

1/ (MW)

District Area 2013

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Luzon 8,305 8,671 9,011 9,365 9,732 10,114 10,512 10,924 11,353 11,799 12,262

Meralco 5,928 6,047 6,289 6,551 6,795 7,048 7,312 7,589 7,874 8,171 8,477

1 NCR 4,331 4,418 4,601 4,795 4,976 5,163 5,358 5,323 5,523 5,731 5,946

2 North 176 186 204 213 221 230 239 330 342 355 368

3 South 1,420 1,443 1,484 1,543 1,598 1,656 1,715 1,936 2,009 2,085 2,163

North Luzon 1,767 1,959 2,035 2,105 2,199 2,293 2,391 2,494 2,602 2,713 2,830

1 Ilocos 149 161 165 170 177 185 192 200 208 217 226

2 Mt. Province 131 141 144 148 154 159 164 170 174 183 189

3 North Central 192 206 225 234 246 257 269 282 296 309 324

4 Cagayan Valley 189 223 231 241 249 261 273 286 300 314 329

5 West Central 324 363 378 394 416 437 459 482 507 531 557

6 South Central 731 810 834 860 897 931 967 1,005 1,045 1,084 1,126

7 North Tagalog 51 55 56 58 61 63 66 69 72 75 79

South Luzon 611 664 687 708 738 773 808 841 877 914 954

1 Batangas/Cavite 301 338 350 359 374 391 408 423 441 459 477

2 Laguna /Quezon 99 102 106 110 116 122 128 134 141 148 156

3 Bicol 211 224 231 239 249 260 272 283 294 308 322

Visayas 1,572 1,746 1,848 1,949 2,048 2,137 2,226 2,313 2,401 2,488 2,574

1 Panay 273 279 316 335 354 373 391 408 425 442 457

2a Cebu 783 865 890 942 992 1,032 1,073 1,113 1,153 1,193 1,234

2b Bohol 63 75 79 83 87 90 94 98 102 105 109

3 Leyte-Samar 200 261 288 301 315 328 342 355 369 382 396

4 Negros 254 265 275 288 301 314 327 340 352 365 378

Mindanao 1,428 1,502 1,574 1,645 1,729 1,813 1,902 1,990 2,095 2,199 2,309

1 North Western 208 214 218 226 238 250 262 274 288 302 317

2 Lanao Area 152 165 191 205 215 224 235 245 262 274 287

3 North Central 243 253 261 269 280 292 305 317 330 345 360

4 North Eastern 132 135 146 154 162 172 181 191 202 213 224

5 South Eastern 486 521 536 557 585 612 640 668 701 735 771

6 South Western 206 214 223 234 249 264 279 295 312 330 349

Philippines 11,305 11,918 12,433 12,959 13,509 14,065 14,639 15,228 15,849 16,486 17,145 1/ Based on the transformer peak demand coincident with the System Peak.

Power demand for the country is expected to grow at an AACGR of 4.47% for the period 2014-2018 and 4.04% for 2019-2023. The growth rate for the period 2014-2018 is higher than the 2012 TDP forecast for the same period, which stood at 4.01%. Overall, demand is expected to increase from 11,305 MW in 2013 to 17,145 MW in 2023, which translates to an AACGR of 4.25%. It is projected that Visayas will have the highest AACGR compared with the other Grids. Visayas is forecasted to register an AACGR of 5.05% for 2014-2023 period while the Mindanao and Luzon at 4.93% and 3.97%, respectively.


4.3.1 Demand Projections for Substation Capacity Addition The demand projections for substation expansion take off from the per meter forecast undertaken by NGCP. Forecast energy deliveries per metering point are derived from historical trends and/or information as to the potential expansion or contraction of demand of Grid-connected customers. Inputs are sought from customers in this bottom-up process to incorporate their expansion plans. Projected monthly energy deliveries (in MWh) to metering points connected to a given transformer are then summed up. Accounting adjustments for technical losses and substation use to this sum, the monthly per transformer energy delivery forecast (in MWh) is derived. The forecast transformer peak (in MW) is then calculated by applying the appropriate load factor to these energy delivery projections. This transformer peak becomes the basis for adding transformer capacities at the substations.

4.3.2 Demand Projections for Transmission Expansions The SPD projections for each Grid are used in determining the necessary transmission expansion projects. However, for these figures to be usable in the transmission network analysis software, it has to be broken down into individual transformer loads. First, the embedded generation during system peak is subtracted from the SPD to come up with the non-embedded peak. Then the individual transformer maximum demand projections during the month when the system peak usually occurs (as determined in the previous section) are used to establish the percentage of the non-embedded peak that will be assumed for a specific transformer.

4.4 Generation Capacity Addition

This section shows the proposed generating plants in Luzon, Visayas and Mindanao Grids based on DOE List of Private Sector-Initiated Power Projects as of December 13, 2013 (the 2012 PDP Update). The DOE has also provided the list of generating plants that already have clearance to undertake System Impact Study (SIS) but are not included yet in the said 2012 PDP Update since the reports on the status of their development are not yet submitted. This list will fall under the new classification named as the Prospective Projects. Thus, there will be three generation project classifications, as follows: a. Committed – These are projects that have service contracts in place, are in the

development/commercial stage and have reached financial close already. b. Indicative – Projects with service contracts, in the development/ commercial stage but with

no bank financing yet. c. Prospective – Projects with DOE clearance to undertake SIS and service contracts and on

the predevelopment stage. These projects are not included in the official list of DOE’s “Private Sector-Initiated Power Projects”. (Refer to Appendix 3 for the generation list).


It is worth noting that the proponents should inform first the DOE on their plans and updates regarding the status of their projects for monitoring and inclusion in the official list of DOE’s PDP Generation List. Proponents are advised to regularly coordinate with the DOE’s Electric Power Industry Management Bureau. For 2013, Table 4.3 shows the additional capacity addition.

Table 4.3: Summary of Generation Capacity Addition

Total Committed Capacity (MW) Total Indicative Capacity (MW)

Luzon 1,467.40 10,042.50

Visayas 429.60 807.00

Mindanao 515.00 2,590.70

PHILIPPINES 2,412.00 13,440.20

Table 4.4(a): List of Luzon Generation Capacity Addition

(DOE List of Private Sector-Initiated Power Projects as of December 13, 2013)

Comm. Year

Proposed Generation Facility Capacity

(MW) Location

TBA Aero Derivative Combined Cycle 150 Calamba, Laguna

2014

Maibarara Geothermal^* 20 Sto. Tomas, Batangas

Alternergy Wind^* 67.5 Pililla, Rizal

Burgos Wind 150 Nagsurot-Saoit, Burgos, Ilocos Norte

Energy World Combined Cycle Unit 1^* 200 Pagbilao, Quezon

First Gen San Gabriel Avion Project^ 100 Brgy. Bolbok, Batangas

Mirae Currimao Solar 20 Currimao. Ilocos Norte

NLUPC Caparispisan Wind 81 Pagudpud, Ilocos Norte

Puting Bato Coal Phase I^* 135 Calaca, Batangas

SLPGC Coal Phase I^* 150 Calaca, Batangas

2015

CEC Dupinga HEPP 3 Gabaldon, Nueva Ecija

CJ Global Thermal Gasifier Conversion 18 Camarines Sur


Green Innovations Biomass 12 Talavera, Nueva Ecija

Hydrocore Ibulao HEPP 4.5 Lagawe, Ifugao

IBEC Biomass^ 18 Isabela

NLUPC Balaoi Wind 45 Balaoi, Pagudpud, Ilocos Norte

Puting Bato Coal Phase II^ 135 Calaca, Batangas

San Gabriel Natural Gas 550 San Gabriel, Batangas

San Jose City i Power Corporation’s Biomass^ 9.9 San Jose, Nueva Ecija

SLPGC Coal Phase I^ 150 Calaca, Batangas

2016

ANDA Power CFPP^ 82 Mabalacat, Pampanga

ATN Macabud Solar 30 Macabug, Rodriguez, Rizal


FDC Coal 40 Camarines Sur

SLPGC Coal Phase II 300 Calaca, Batangas

SMC Limay Coal Phase I 300 Limay, Bataan

RP Energy Coal* 600 Subic, Zambales

2017

AES Masinloc Expansion 600 Zambales

Alternergy Cavinti Wind 50 Cavinti, Laguna

Alternergy Sembrano Wind Ph. 2 56 Mabitac, Rizal

AG&P Combined Cycle Unit 1 1200 Limay, Bataan

Energy Logics Wind Phase I* 48 Pasuquin, Ilocos Norte

QPP Expansion 500 Mauban, Quezon

SMC Limay Coal Phase II 300 Limay, Bataan

TAOil San Isidro Combined Cycle 415 Ambulong, Batangas

2018

AG&P Combined Cycle Unit 2 1,200 Limay, Bataan

GN Power Expansion Coal 1,200 Mariveles, Bataan

Tanawon Geothermal* 40 Guinalajon, Sorsogon


Fig. 4.4(a): Luzon Generation Capacity Addition

Comm. Year


(MW) Location

2018-19 Atimonan Meralco LNG 1,750 Atimonan, Quezon

2019 Kayabon Geothermal 40 Manito, Albay

Rangas Geothermal 40 Bacman Geo Field, Sorsogon

2019-20 SMC Limay Coal Phase III 300 Limay, Bataan

Sub-Total 11,509.90 MW ^committed plants *with SIS

NLUPC Caparispisan Wind 81 MW (2014)

IBEC Biomass 18 MW (2015)

San Jose City Biomass

9.9 MW (2015)

Altenergy Wind 67.5 MW (2014)

Mabitac Wind 56 MW (2017)

EDC Geothermal Tanawon - 40 MW (2018) Rangas – 40 MW (2019) Kayabon – 40 MW (2019)

FDC Coal 40 MW (2016)

Burgos Wind 150 MW (2014)

Energy Logics Wind Ph.1 - 48 MW (2017)

AES Masinloc Expansion 600 MW (2017)

GN Power Expansion Coal 1200 MW (2018)

RP Energy Coal 600 MW (2016)

SLPGC Coal Ph. 1 - 150 MW (2014) - 150 MW (2015) Ph. 2 – 300 MW (2016)

Puting Bato Coal Ph.1 - 135 MW (2014) Ph.2 - 135 MW (2015)

Aero Derivative CC 150 MW (TBA)

Cavinti Wind 50 MW (2017)

QPP Expansion 500 MW (2017)

Energy World CC Ph.1 - 200 MW (2014) Ph.2 - 200 MW (2015) Ph.3 - 200 MW (2016)

Atimonan Meralco LNG 1750 MW (2018-19)

San Gabriel Natural Gas 550 MW (2015)

Maibarara Geothermal 20 MW (2014)

SMC Limay Coal Ph.1 - 300 MW (2016) Ph.2 - 300 MW (2017)

Ph.3 – 300 MW (2019/20)

Mirae Solar 20 MW (2014)

AG&P CC Unit 1 - 1200 MW (2017) Unit 2 - 1200 MW (2018)

Hydrocore Ibulao HEPP 4.5 MW (2015)

CEC Dupinga HEPP 3 MW (2015)

ATN Macabud Solar 30 MW (2016)

CJ Global 18 MW (2015)

ANDA Power CFPP 82 MW (2016)

Green Innovation Biomass 12 MW (2015)

First Gen San Gabriel 100 MW (2014)

TAOil San Isidro CC 415 MW (2017)

NLUPC Balaoi Wind 45 MW (2015)


Table 4.4(b): List of Visayas Generation Capacity Addition (DOE List of Private Sector-Initiated Power Projects as of December 13, 2013)

Comm. Year


(MW) Location

2014

Nasulo Geothermal^* 50 Nasuji, Valencia, Negros Oriental

Petrogreen Nabas Wind* 50 Nabas, Aklan

TAREC Guimaras Wind Phase I and II* 54 San Lorenzo, Guimaras

TPC Coal-fired Expansion^ 82 Brgy. Daanlungsod, Toledo City, Cebu

Villasiga Hydro^* 8 Sibalom, Antique

2015

AES Battery Storage 40 Kabankalan, Negros Occidental

Asian Energy Consolacion Landfill^ 3.6 Cebu

Biliran Geothermal 49 Biliran, Biliran

Concepcion Coal Ph.1^* 135 Concepcion, Iloilo

CPEC Igbulo HEPP 6 Igbaras, Iloilo

Leyte Solar 30 Ormoc City, Leyte

PEDC Coal-fired Expansion 150 La Paz, Iloilo

Pulupandan Wind 50 Pulupundan, Negros Occidental

San Carlos Biomass*^ 16 San Carlos, Negros Occidental

2016 Concepcion Coal Ph.2^* 135 Concepcion, Iloilo

FDC Danao Coal* 20 Danao City, Cebu

2017 Therma Visayas Coal* 300 Brgy. Bato, Toledo, Cebu

Timababan HEPP 18 Madalag, Aklan

2018 EDC Dauin Geothermal 40 Dauin, Negros Oriental

Sub-total 1,236.60 MW

Concepcion Coal Ph.1 - 135 MW (2015) Ph.2 - 135 MW (2016)

Petrogreen Nabas Wind 50 MW (2014)

San Carlos Biomass 18 MW (2015)

Villasiga Hydro 8 MW (2014)

PEDC Coal Exp. 150 MW (2015)

TAREC Guimaras Wind PH.1&2 - 54 MW (2014)

FDC Danao Coal 20 MW (2016)

TPC Coal Exp. 82 MW (2014)

Asian Energy Biomass

3.6 MW (2015)

EDC Dauin Geothermal 40 MW (2018)

Nasulo Geothermal 50 MW (2014)

Therma Visayas Coal 300 MW (2017)

Timbaban HEPP 18 MW (2017)

CPEC Igbulo HEPP 6 MW (2015)

Pulupandan WInd 50 MW (2015)

^committed plants *with SIS

Biliran Geothermal 49 MW (2015)

AES Battery Storage 40 MW (2015)

Fig. 4.4(b): Visayas Generation Capacity Addition

Leyte Solar 30 MW (2015)


Table 4.4(c): Mindanao Generation Capacity Addition (DOE List of Private Sector-Initiated Power Projects as of December 13, 2013)

Comm. Year


(MW) Location

2013 MEGC Diesel^ 15 Dalipuga, Iligan City

2014

PSFI Bunker-Fired Power Plant 5.2 San Francisco, Agusan del Sur

PSI Bunker-Fired Power Plant 20.9 Brgy. Apopong, General Santos City

Therma South Coal^* 300 Toril, Davao / Sta.Cruz Davao del Sur

2015

Bubunawan Hydro 8 Baungon and Libona, Bukidnon

Cabadbaran Hydro 14 Cabadbaran, Agusan del Norte

Darong Solar* 35 Sta. Cruz, Davao del Sur

Don Carlos Biomass 10 Maramag, Bukidnon

FDC Davao Coal 20 Maco, Davao del Norte

Kalilangan Biomass 10 Maramag, Bukidnon

Malaybalay Biomass 10 Maramag, Bukidnon

Puyo Hydro 30 Jabonga, Agusan del Norte

SMC Davao Coal Phase 1* 150 Malita, Davao del Sur

San Ramon Coal-fired* 100 San Ramon, Zamboanga City

Southern Mindanao Coal^* 200 Maasim, Sarangani

Tagoloan Hydropower 20 Bukidnon

Tudaya 1 Hydro* 6.6 Sta.Cruz, Davao del Sur

Tudaya 2 Hydro* 7 Sta.Cruz, Davao del Sur

Tumalaong Hydro 8 Baungon, Bukidnon

2016

FDC Misamis Coal* 405 Villanueva, Misamis Oriental

PNOC-EC Coal 100 Sibugay, Zamboanga


2017

Limbatangon Hydro 6 Cagayan de Oro, Misamis Occidental

Mindanao III Geothermal* 50 Kidapawan, North Cotabato

Minergy Thermal CFPP 110 Balingasag, Misamis Oriental

GN Power Coal* 405 Kauswagan, Lanao del Norte

2018 Culaman Hydro 10 Manolo Fortich, Bukidnon


2019 SMC Davao Coal Phase 3 300 Malita, Davao del Sur

2020 SMC Davao Coal Phase 3 300 Malita, Davao del Sur

Sub-total 3,105.70 MW

^committed plants *with SIS


Figure 4.4(c): Mindanao Generation Capacity Addition

4.5 Supply – Demand Outlook This section discusses the supply-demand outlook for each grid. The potential capacity additions are based on the line up from the 2012 PDP Update of the DOE. The required capacity of the system refers to the projected peak demand plus the ERC-prescribed reserve margin, described as follows:

a. Frequency Regulation Reserve (FRR) For each grid there should be a level of FRR equal to 4% of the forecast demand on that grid. This is measured for each hourly dispatch period.

b. Contingency Reserve (CR) The CR available on each grid should be equal to the total scheduled unit load and unit reserve level of the most heavily loaded generator on that grid. It is assessed for each hourly dispatch period.

PNOC-EC Coal 100 MW (2016)

San Ramon Coal 100 MW (2015)

MEGC Diesel 15 MW (2013)

Mindanao III Geothermal 50 MW (2017)

Southern Mindanao 200 MW (2015)

Darong Solar 35 MW (2015)

Tagoloan Hydro 20 MW (2015)

Therma South 300 MW (2014)

FDC Davao Coal 20 MW (2015)

SMC Davao Coal PH.1 - 150 MW (2015) PH. 1 – 150 MW (2016) PH. 2 – 300 MW (2018) PH. 3 – 300 MW (2019) PH. 3 – 300 MW (2020)

FDC Misamis Coal 405 MW (2016)

GN Power 405 MW (2017)

Puyo HEPP 30 MW (2015)

Cabadbaran HEPP

14 MW (2015)

Limbatangon HEPP

6 MW (2017)

Bubunawan HEPP 8 MW (2015)

Tumalaong HEPP 8 MW (2015)

Culaman HEPP 10 MW (2018)

Tudaya HEPP Ph.1 – 6.6 MW (2015) Ph.2 – 7 MW (2015)

Minergy CFPP 110 MW (2017)

PSFI Bunker-Fired 5.2 MW (2014)

Don Carlos Biomass

10 MW (2015)

Malaybalay Biomass 10 MW (2015)

Kalilangan Biomass 10 MW (2015)

PSI Bunker-Fired 20.9 MW (2014)


c. Dispatchable Reserve (DR) The available DR must be equal to the scheduled load and reserve on the second most heavily loaded scheduled generator on each grid. It is again assessed for each hourly dispatch period. Where the two highest loaded generators on each grid have the same scheduled loading and reserve, the contingency reserve requirement will be equal to the dispatchable reserve service.

With the new computation for the reserve margin, the highest and the second most heavily loaded generator in the grids are already considered. Coincidentally for each grid, both units are from the same power plant: the 600 MW Sual, 100 MW KEPCO, and 105 MW Mindanao CFPP for Luzon, the Visayas and Mindanao Grid, respectively. The normal and long dry scenarios are observed in Luzon and Mindanao Grids due to the significant capacity of hydro power. This is to analyze the worst condition in times of rain shortage due to El Niño phenomenon, as what happened in 2009 and 2010. The Visayas Grid is not considered having only 1% hydro plant share in the total generation capacity in the region. It is important to note that in long-term transmission planning, the normal condition is considered in the simulation studies to ensure the adequacy of the system to accommodate the maximum generation capacity of the system.

4.5.1 Luzon Between 2013 and 2020, Luzon expects about 11,510 MW additional capacity. This capacity includes several wind farm projects (497.5 MW) mostly situated in northern Luzon.

As of December 2012, a total of 6,268 MW capacity have completed SIS and such level will be sufficient to meet the required capacity of the system up to 2023. As shown in Figure 4.5.1(a), the year 2016 is critical for Luzon Grid for the proposed capacity to come on stream, otherwise power shortage will be experienced.


2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Indicative (Cumulative) 0 0 588 1,828 4,843 7,283 9,113 9,413 9,413 9,413 9,413

Committed (Cumulative) 0 605 1,118 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400

Dependable Capacity 11,431 11,431 11,431 11,431 11,431 11,431 11,431 11,431 11,431 11,431 11,431

Required Capacity 9,837 10,218 10,571 10,940 11,321 11,719 12,132 12,561 13,007 13,471 13,952

Peak Demand 8,305 8,671 9,011 9,365 9,732 10,114 10,512 10,924 11,353 11,799 12,262

0

5,000

10,000

15,000

20,000

25,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023


Committed (Cumulative) 0 605 1,118 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400



Peak Demand 8,305 8,671 9,011 9,365 9,732 10,114 10,512 10,924 11,353 11,799 12,262

0

5,000

10,000

15,000

20,000

25,000

Figure 4.5.1(a) Luzon Supply-Demand Outlook based on Normal Condition, 2013-2023

Figure 4.5.1 (b) Luzon Supply-Demand Outlook based on long dry scenario, 2013-2023

Note: 1. Wind and Solar Plants excluded. 2. Based on DOE List as of Dec 13, 2013.


With reduction in the total dependable capacity of hydro plants by about 1,234 MW during summer months (determined based on the generation offers of hydro power plants during peak load hours in April, May & June 2012)


2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Indicative (Cumulative) 0 0 245 265 583 623 623 623 623 623 623

Committed (Cumulative) 0 140 295 430 430 430 430 430 430 430 430



Peak Demand 1,572 1,746 1,848 1,949 2,048 2,137 2,226 2,313 2,401 2,488 2,574

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4.5.2 Visayas With the entry of new coal-fired power plants in 2011 namely: CEDC 3 x 83.7 MW – Feb. 26; KSPC 2 x 110.5 MW – Unit 1: Feb. 28 / Unit 2: May 30; PEDC 2 x 82 MW – March 26, the dependable capacity of the Visayas Grid can accommodate the peak demand of the system until the critical year 2015, as shown in Figure 4.5.2.

Figure 4.5.2 Visayas Supply-Demand Outlook, 2013-2023

The above supply-demand outlook did not consider the de-rating of diesel plants over time and their retirement once the new generating plants, the coal plants in particular, become available. These factors are considered in the sensitivity analysis.

4.5.3 Mindanao The period 2013-2014 will be critical years for Mindanao Grid as the existing dependable capacity would not be sufficient to meet the projected peak demand for the said years. Notably, as shown in Figure 4.5.3(a), it is expected that additional bulk generation capacity of 500 MW will go on stream by 2015. Should all the potential capacity materialized, Mindanao shall have sufficient capacity up to 2023 and the long withstanding power deficiency being experienced by the island could be alleviated. With the entry of these additional generations during the said years, the aggregate dependable capacity is deemed sufficient to meet the projected demand. During long dry conditions, however, the required generation capacity addition to meet the forecasted peak demand is increased due to the reduction from 1,641 MW to 1,472 MW in total dependable capacity.



2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023





Peak Demand 1,428 1,502 1,574 1,645 1,729 1,813 1,902 1,990 2,095 2,199 2,309

0

1,000

2,000

3,000

4,000

5,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023





Peak Demand 1,428 1,502 1,574 1,645 1,729 1,813 1,902 1,990 2,095 2,199 2,309

0

1,000

2,000

3,000

4,000

5,000

Figure 4.5.3(a) Mindanao Supply-Demand Outlook based on Normal Condition, 2013-2023

Figure 4.5.3 (b) Mindanao Supply-Demand Outlook based on long dry scenario, 2013-2023



With reduction in the total dependable capacity of hydro plants by about 169 MW during summer months (determined based on the generation offers of hydro power plants during peak load hours in April, May & June 2012)


In the supply-demand outlook for Luzon and Mindanao for 2013-2023, two scenarios are shown:

a) The normal condition where the hydro power plants are assumed to be at their maximum dependable capacity; and

b) Long dry condition where the total supply is based on the reduced capacity of hydro power plants.

For Luzon and Mindanao Grids, long dry season has significant impact on the supply scenario considering that hydro power accounts for 20% of total dependable capacity in Luzon and more than 50% in Mindanao. This is not the case in the Visayas since hydro capacity accounts for less than 1% of the total dependable capacity.




CHAPTER 5: Completed and Ongoing Projects for the 3rd Regulatory Period (2011-2015)

The completed projects refer to those projects completed in the period 01 January 2011 to 31 December 2013. In this period, NGCP completed a total of 954.8 circuit-km of overhead transmission lines and installed 3,925 MVA additional substation capacities and 270 MVAR reactive power support as shown in Table 5.1. Furthermore, in compliance with the Standard Equipment Identification and Labeling (SEIL), which adopted a new naming convention for substations as shown in Appendix 1, some of the project’s names were also changed or updated for consistency.

Table 5.1 Completed Projects for 2011-2013

PROJECT NAME (AS FILED WITH ERC)

PROJECT NAME (UNDER SEIL)

MVA MVAR CKT-KM DATE OF COMPLETION

LUZON

Luzon Transmission Equipment Upgrade

600 180 Kadampat S/S - January 2011

Hermosa-Balintawak T/L Relocation

Hermosa-Quezon T/L Relocation

12.5 March 2011

Santiago-Alicia 69 kV T/L and S/S (Package 2)

80 January 2011

Batangas Transmission Reinforcement Project

160.3 Biñan S/S – December 2011

Luzon S/S Expansion Project 1

1,600

Biñan S/S – December 2011 Mexico S/S – September 2011 Cruz na Daan and Bantay S/S – June 2012 Laoag S/S – July 2012 Cabanatuan S/S – August 2012 Bauang S/S – September 2012 Naga S/S – December 2012

Luzon Upgrading Project 1 300 Dasmariñas S/S – Dec. 2012

Mariveles CFPP Transmission Reinforcement (Network Asset)

230 kV T/L PCB Replacement for

San Jose S/S

84.5

Line 1 – January 2013 Line 2 – December 2012

April 2011

San Esteban - Laoag 230 kV T/L (Stage 1)

7.5 0.5 March 2013

Northern Transmission Development – (Magapit Capacitor)

15 May 2013

Tayabas S/S Expansion Project 1

600 January 2013


PROJECT NAME (AS FILED WITH ERC)


MVA MVAR CKT-KM DATE OF COMPLETION

VISAYAS

Northern Panay Backbone 100 190 January 2011

Visayas PCB Replacement

Priority/1

1: Amlan, Mabinay & Bacolod S/S - March 2011

Priority/2

2: Dingle S/S – August 2012 Sta. Barbara S/S – August 2012 Panitan S/S – August 2012 Compostela S/S – October 2012

New Naga Substation Colon Substation 50/3

June 2011

Wright-Calbayog T/L Paranas-Calbayog T/L 50 130 November 2011

Negros-Panay Interconnection Uprating (Phase 1)

50 70

San Juan - Dingle T/L – December 2011 Dingle S/S – December 2011 San Juan S/S – November 2012

MINDANAO

Sangali-Pitogo 138 kV T/L Zamboanga-Pitogo 138 kV T/L

67 January 2011

Mindanano S/S Expansion 2005 (Matanao, Butuan, Sta. Clara)

200

Matanao – January 2011 Butuan – October 2011 Sta. Clara – November 2011

Gen. Santos-Tacurong 138 kV T/L

200 160 December 2011

Mindanao Reliability Compliance Project – 1 (Phase 3: Mindanao Shunt Reactors and Capacitors)

67.5 Bislig - March 2012 Sta. Clara – July 2012

Mindanao PCB Replacement

/4

June 2011

Nuling and Tindalo S/S Expansion

Sultan Kudarat and Nabunturan S/S Expansion

175 Nuling S/S – April 2013 Tindalo S/S – March 2013

TOTAL 3,925 270 954.8 /1

10-138 kV PCB and associated equipment /2

9-138 kV PCB and associated equipment /3 50 MVA initially installed from the 2x50 MVA approved by the ERC

/4 22-138 kV PCB and associated equipment (supply only, installation to be handled by O&M)

Shown in Tables 5.2 to 5.4 are the remaining 3rd Regulatory Period – approved transmission projects for Luzon, the Visayas and Mindanao.


Table 5.2 Ongoing Projects for Luzon (2014-2015)

PROJECT NAME/DRIVER (AS FILED & APPROVED BY ERC)


MVA MVAR CKT-KM

ETC

Generation Entry

Mariveles CFPP Transmission Reinforcement Project (Network Asset)

BCCP S/S Expansion

2014

Ambuklao - Binga 230 kV T/L Upgrading 22 2015

RP Energy CFPP Associated T/L Project/4 114 2015

Load Growth

Luzon S/S Expansion Project 2 1,100 2014

Luzon S/S Expansion Project 3 800 2014

Luzon S/S Expansion Project 4 1,375 2015

New Antipolo 230 kV S/S Antipolo 230 kV S/S 200 40 2015

Congestion Alleviation

Dasmarinas S/S Expansion Dasmariñas 500 kV S/S Expansion 900 2014

Kalayaan-Makban 230 kV T/L Upgrading Lumban-Bay 230 kV T/L Upgrading 80 2014

San Jose-Balintawak 230 kV Line 3 San Jose-Quezon 230 kV Line 3 19 2015

System Reliability and Power Quality

Binga-San Manuel 230 kV T/L(Stage 1) 50 2014

Binga-San Manuel 230 kV T/L (Stage 2) 80 2015

Luzon Voltage Improvement Project 1 500 2014

Luzon Voltage Improvement Project 2 600 2014

Luzon PCB Replacement/5

Luzon S/S Reliability Project 1 250 2014

San Esteban - Laoag 230 kV T/L (Stage 2) 600 240 2014

San Jose-Angat 115 kV Line Upgrading 36 2015

Santiago - Tuguegarao 230 kV Line 2 118 2014 /4 Based on 2 x150 MW Generating Units. Project components and target commissioning year to be changed based on 2x300 MW

Generating Units. /5 9-115 kV PCB and 9-230 kV PCB and associated equipment


Ambuklao-Binga 230 kV

Transmission Line Upgrading

Antipolo 230 kV Substation

Binga-San Manuel 230 kV

Transmission Line

Dasmariñas EHV

Substation Expansion

Lumban-Bay 230 kV T/L

Upgrading

San Esteban-Laoag 230 kV

Transmission Line (Stage 2)

San Jose-Angat 115 kV

Line Upgrading

San Jose-Quezon 230 kV

Line 3

Santiago-Tuguegarao

230 kV Line 2

Luzon Power Circuit Breaker Replacement

- San Jose

- Labo

- Malaya

- Gumaca


- Mexico

- Concepcion

- La Trinidad

- Ambuklao

- Santiago


- Batangas

- Calaca

- Bay


- Muntinlupa

- Nagsaag

- Bayombong

- Limay

- Tuguegarao

- Santiago

- Labrador - Daraga

Luzon S/S Reliability Project 1

- Botolan

- Gumaca

- Labo

- San Esteban

- Currimao

Luzon Voltage Improvement Project 1

- Naga

- Doña Imelda

- Marilao

- Muntinlupa

- Cabanatuan

Luzon Voltage Improvement Project 2

- Dasmariñas

- Biñan

- Mexico

Mariveles CFPP Transmission

Reinforcement Project

(Network Asset)

- BCCP S/S Expansion

RP Energy CFPP

Associated T/L Project

Fig. 5.1 – Ongoing Projects for Luzon (2014-2015)


Table 5.3 Ongoing Projects for the Visayas (2014-2015) PROJECT NAME/DRIVER

(AS FILED & APPROVED BY ERC) PROJECT NAME

(UNDER SEIL) MVA MVAR

CKT-KM

ETC

Generation Entry

Talavera-Sigpit-New Naga 138 kV T/L Calung-calung-Colon 138 kV T/L 56 2014

Load Growth

Bohol Backbone 100 96 2014

Negros V T/L

58 2015

Southern Panay Backbone 50 99 2014

Visayas S/S Expansion Project 1 200

2014

Congestion Alleviation

New Naga-Banilad 138 kV T/L Colon-Cebu 138 kV T/L 50 2014

System Reliability and Power Quality

Compostela S/S Expansion 150 2014

Ormoc-Maasin 138 kV T/L

113.97 2014

Ormoc-Babatngon 138 kV T/L 78.54 2014

Sta. Rita-Quinapundan 69 kV T/L 97 2014

Visayas S/S Reliability Project 1 500

2014

Visayas S/S Reliability Project 2 500 2014

Banilad-Mandaue-Mactan Transmission Cebu-Lapu Lapu T/L/6 18.9 2015

Culasi-Sibalom 69 kV T/L Culasi-San Jose 69 kV T/L/7 86 2015

/6 - Project components to be changed to interface with the proposed Cebu-Negros-Panay (CNP) Backbone. /7 - To be linked to the new substation in San Jose under the Southern Panay Backbone Project.

Visayas S/S Expansion Project 1

- Ormoc

- Calung-calung

- Kabankalan

Bohol Backbone

Calung-calung-Colon

138 kV T/L

Cebu-Lapu-lapu T/L

Colon-Cebu

138 kV T/L Culasi-San Jose 69 kV T/L

Negros V T/L

Ormoc-Babatngon

138 kV T/L

Ormoc-Maasin

138 kV T/L

Southern Panay

Backbone (Substation)

Sta. Rita-Quinapundan

69 kV T/L

Visayas S/S Reliability Project 1

- Ormoc

- Amlan

- Bacolod

- Cadiz

- Babatngon

- Maasin

- Samboan

Visayas S/S Reliability Project 2

- Mandaue

- Lapu-lapu

- Ormoc

- Sta. Barbara

- Sta. Rita

- Babatngon

Fig. 5.2 – Ongoing Projects for the Visayas (2014-2015)

Compostela S/S

Expansion


Table 5.4 Ongoing Projects for Mindanao (2014-2015)

PROJECT NAME/DRIVER (AS FILED & APPROVED BY ERC)


MVA MVAR CKT-KM

ETC

Load Growth

Aurora-Polanco 138 kV T/L 75 184 2014

Abaga-Kirahon 230 kV T/L Balo-i-Villanueva 230 kV T/L 240 2014

Mindanao S/S Expansion Project 2 150 2014

System Reliabililty and Power Quality

Reliability Compliance Project 1 (Phase 1: Butuan-Placer 138 kV T/L)

100 2014

Reliability Compliance Project 1 (Phase 2: Matanao-Klinan 138 kV T/L)

Reliability Compliance Project 1 (Phase 2: Matanao-Gen. Santos 138 kV T/L)

70 2014

Mindanao S/S Reliability Project 1

325

2014

Nuling Capacitor Sultan Kudarat Capacitor 15

2014

Pulangui-Kibawe 138 kV Line 3 Maramag-Kibawe 138 kV Line 3 21 2014

Kirahon-Maramag 230 kV T/L Villanueva-Maramag 230 kV T/L 216 2014

Aurora-Polanco

138 kV T/L

Balo-i-Villanueva

230 kV T/L

Butuan-Placer

138 kV T/L

Maramag-Kibawe

138 kV Line 3

Matanao-Gen. Santos

138 kV T/L

Villanueva-Maramag

230 kV T/L

Mindanao S/S Expansion Project 2

- Gen. Santos

- Kidapawan

Mindanao S/S Reliability Project 1

- Jasaan

- Bunawan

- Aurora

- Lugait

Fig. 5.3 – Ongoing Projects for Mindanao (2014-2015)

Sultan Kudarat

Capacitor


CHAPTER 6: 2014-2023 Transmission Outlook for Luzon

6.1 Introduction The ten-year projected demand for 2014-2023 period was based on the total demand within the three consumer groups in Luzon: 1) MERALCO, which consist of consumers within NCR and adjacent provinces; 2) North Luzon; and 3) South Luzon. Light loading scenario was based on historical data and was considered at 55 % of the system peak demand in the Luzon Grid. Furthermore, the following dispatch conditions were also considered: a) Maximum North Wet Season: All generation facility outputs in the northern part of the grid are

set to their maximum capacities;

b) Maximum South Dry Season: All generation facility outputs in the southern part of the grid are set to their maximum capacities;

c) Typical Generation Scenario: Power generation are based on the typical output levels of

power plants during system peak load; and

d) Other Generation Scenario: Particular study areas, e.g., Bataan, Batangas, etc. where varying dispatch of concentrated power generation could result in additional transmission constraints.

6.2 Existing and Programmed Generation Capacity The Existing and Programmed Generation Capacity from the 2012 PDP Updates discussed in Chapter 4 (see Figure 4.4a and Table 4.4a) was further assessed and included in the system model. Table 6.1 below shows that, a total of 10,757 MW installed capacity will come from Conventional Power Plants, while the emerging Renewable Energy (RE)-Based Power Plants could provide a total of 752.90 MW installed capacity, with details shown below:

Table 6.1: Existing and Programmed Generation Capacity for Luzon Power Plant Type/

Fuel Source/RE Source Existing Generation

Capacity (MW)

Programmed Generation Capacity for 2013-2021

(MW)

Conventional Power Plants

Coal 4,530.60 4,792

Diesel/Oil 2,020.20 150

Natural Gas 2,861 5,815

Sub-Total 9,411.80 10,757

RE-Based Power Plants

Geothermal 824 140

Hydro 2,462.40 7.5

Wind 33 497.50

Biomass 38.50 57.90

Solar - 50

Sub-Total 3,357.90 752.90

Total 12,769.80 11,509.9


6.3 North Luzon The North Luzon area is composed of seven O&M Districts: Ilocos Region, Mt. Province, North and South Central Luzon, Cagayan Valley, West Central Luzon and North Tagalog. Based on the 2013 projected peak demand, North Luzon accounts to 1,764 MW or about 22 % of the entire peak demand in the Luzon Grid. As discussed in Section 3.3, the Northern Transmission Corridor consists of 500 kV, 230 kV and 115 kV AC transmission system. Based on 2012 data, CFPP in this area include 1,294 MW Sual, 630 MW Masinloc and 651.6 MW Mariveles, while Diesel Power Plant’s installed capacity totalled 508.2 MW augmented by 620 MW Limay Combined Cycle Gas Turbines. North Luzon also hosts a total of 1,647.8 MW or 67 % of Large HEPPs in Luzon, i.e., 411 MW San Roque, 360 MW Magat, 246 MW Angat, 132 MW Pantabangan-Masiway, 105 MW Ambuklao, 125 MW Binga, 70 MW Bakun, 165 MW Casecnan and 33.8 MW Hedcor. The 33 MW Bangui Wind Power, the first wind farm in the country is also located in Ilocos Norte in the northernmost tip of Luzon. 6.3.1 Ongoing Transmission Projects for the 3rd Regulatory Period Aside from the completed projects for period 2011-2013, considered in the system simulation are the target completion of ongoing projects for period 2014-2015 (remaining years of 3rd Regulatory Period) which are at various stages of implementation (including some changes), with the following details and corresponding project drivers: a) Generation Entry:

Ambuklao-Binga 230 kV T/L, 11 km that includes 6-230 kV PCB and associated equipment1 in Ambuklao S/S;

Mariveles CFPP Transmission Reinforcement, composed of 230 kV PCB and associated equipment for Limay BCCP S/S Expansion; and

RP Energy CFPP Associated Project, approved by the ERC for implementation in the 3rd Regulatory Period, however, with the change in generation capacity from 2 x 150 MW to 2 x 300 MW and change in target commissioning year, the grid reinforcement was revised accordingly and was packaged under the Western Luzon 500 kV Backbone (Stage 1) and to be included in the 4th Regulatory Reset application. The details of the revised project components are discussed under 6.3.3.1.

b) Congestion Alleviation:

San Jose-Quezon 230 kV T/L, 19 km including PCB and associated equipment for San Jose (2-230 kV PCB) and Quezon S/S (1-230 kV PCB);

c) Load Growth:

Luzon S/S Expansion Project 2, includes 230/69-13.8 kV power transformers for Mexico: 300 MVA and 100 MVA, Concepcion: 100 MVA and La Trinidad: 2-300 MVA. For Santiago S/S, 3-230 kV PCB and associated equipment; and

1 Power Circuit Breaker (PCB) and associated equipment includes Disconnect Switches (DS), Lightning Arresters (LA), Current

Transformers (CT), Capacitive Voltage Transformers (CVT), Power Transformers (PT), Power Control and Instrumentation Cables, Cable Trays, Grounding and Installation Materials, AC&DC Auxiliary Switchboards, etc.


Luzon S/S Expansion Project 4, composed of 230/69-13.8 kV power transformers for Nagsaag: 100 MVA, Bayombong: 75 MVA, Limay: 100 MVA, Tuguegarao: 100 MVA, Santiago: 2-100 MVA, Daraga: 100 MVA and 230/115kV power transformer for Muntinlupa: 300MVA.

d) System Reliability and Power Quality: Binga-San Manuel 230 kV T/L, 40 km with corresponding expansions at Binga S/S composed

of 50 MVA 230/69-13.8 kV power transformer, 10-230 kV and 2-69 kV PCB and associated equipment and San Manuel S/S composed of 2-230 kV PCB and associated equipment;

San Esteban-Laoag 230 kV T/L (Stage 2), 120 km with corresponding expansions in Laoag S/S (2x300 MVA 230/115 kV power transformers, 6-230 kV and 9-115 kV PCB and associated equipment and 7.5 MVAR 115 kV Capacitor Bank) and San Esteban S/S (5-230 kV PCB and associated equipment). The stage 1 of this project involves the Laoag S/S Reconfiguration which was completed ahead to accommodate wind farms in Ilocos Norte;

San Jose-Angat 115 kV Line Upgrading, 18 km including 2-115 kV PCB and associated equipment for San Jose S/S;

Santiago-Tuguegarao 230 kV Line 2, 118 km including PCB and associated equipment for Santiago (2-230 kV PCB) and Tuguegarao (1-230 kV PCB) S/S;

Luzon S/S Reliability Project 1 (Botolan-50 MVA, San Esteban-50 MVA and Currimao-50 MVA power transformers. The installation of 50 MVA transformer in Currimao S/S will be packaged under another project, as this was changed from the original 20 MVA (hauling and installation only of power transformer from Laoag S/S);

Luzon Voltage Improvement Project 1, composed of 230 kV capacitor banks for Marilao (3-50 MVAR) and Cabanatuan (1-100 MVAR) S/S;

Luzon Voltage Improvement Project 2, composed of 2-100 MVAR 230 kV capacitor banks for Mexico S/S;

Luzon PCB Replacement Project, the installation of 9-115 kV PCB and associated equipment for San Jose Substation.

6.3.2 Transmission Project for Accelerated Implementation 6.3.2.1 Balingueo (Sta. Barbara) 230 kV Substation Existing Transmission System: The power requirements of various load centers in the three cities in Pangasinan: Dagupan, San

Carlos and Urdaneta and adjacent municipalities are being supplied through the NGCP Labrador and San Manuel Substations. Central Electric Cooperative (CENPELCO), Dagupan Electric Cooperative (DECORP) and Pangasinan III Electric Cooperative (PANELCO III) handle the distribution system towards the end users in their respective franchise areas through 69 kV distribution system.

Transmission Needs: Considering the existing and projected demand in Pangasinan, the system simulation has

determined the urgent need to establish a new drawdown substation strategically located between the two existing substations. Moreover, there is also a need for the involved DUs to construct three new 69 kV lines to be connected to the load-end substations of the DUs to the proposed Balingueo (Sta. Barbara) 230 kV Substation. The implementation scheme, which was


prepared in close coordination with the three DUs, will address the projected load growth, and improve the system reliability and provide operational flexibilityby preventing any load shedding should there be an outage in one of the transformers in either Labrador or San Manuel Substation.

Major Project Components: Balingueo (Sta. Barbara) S/S: 2-100 MVA 230/69-13.8 kV Power Transformers, 5-230 kV PCB

and 4-69 kV PCB and associated equipment. Although targeted for completion in 2015, which is still within the 3rd Regulatory Period, this project shall be included in the 4th Regulatory Reset application of NGCP, thus will still undergo the regulatory reset process. The issuance of ERC approval for accelerated implementation has enabled NGCP to implement the project ahead of the 4th Regulatory Period. 6.3.3 Proposed Transmission Projects for 2016-2023 The following were considered in the system model used in the conduct of network analysis that determines the needed transmission augmentation in North Luzon: a) Target commissioning of various power plants, both Conventional and the emerging Renewable

Energy from Wind Farms in Ilocos Norte and Biomass in Nueva Ecija and Bulacan;

b) The need to meet the projected demand of various load centers and transmit excess generation towards the NCR and adjacent provinces, especially during rainy season;

c) The need to establish a new drawdown substation to reduce the load of nearby substations, thus

provide a more efficient transmission service to the customers; and

d) The need to maintain compliance with the PGC-prescribed power quality standards and to improve system reliability.

Shown in Table 6.2 is the list of transmission projects planned for North Luzon in the period 2016-2023, with the corresponding project drivers.


Table 6.2: Proposed Transmission Projects for North Luzon

Project Name/Driver(s) Province(s) ETC

Generation Entry

Western Luzon 500 kV Backbone (Stage 1) Zambales and Bataan 2017

Laoag-Bangui 230 kV T/L Ilocos Norte 2017

Bolo 500 kV Substation Expansion Pangasinan 2018

Nagsaag-Liberty 230 kV T/L Nueva Ecija and Pangasinan 2020

Generation Entry and System Reliability

La Trinidad-Sagada 230 kV T/L Benguet 2019

Santiago-Dinadiawan-Baler 230 kV T/L Aurora 2023

Load Growth

Mexico-San Simon 69 kV T/L Pampanga 2016

Hermosa-Floridablanca 69 kV Line Bataan 2018

Load Growth and System Reliability

San Simon Substation Pampanga 2017

Luzon Substation Expansion 5 Pangasinan, Nueva Ecija and Bataan 2018

Nagsaag-San Manuel 230 kV Tie Line Upgrading Pangasinan 2018

Magalang 230 kV Substation Pampanga 2020

System Reliability

Pantabangan 230 kV Switchyard Upgrading Nueva Ecija 2017

La Trinidad – Calot 69 kV T/L Benguet 2018

Ilocos Region Substation Upgrading Ilocos Norte, La Union and Pangasinan 2018

Cagayan Valley Substation Upgrading Quirino 2019

Central Luzon Substations Upgrading Bataan and Bulacan 2019

Gamu 230 kV Substation Expansion Isabela 2019

Nagsaag 500 kV Substation Expansion Pangasinan 2019

Currimao Substation Expansion Ilocos Norte 2019

Castillejos 230 kV Substation Zambales 2020

Hermosa-Clark 230 kV T/L Pampanga and Bataan 2022

Liberty-Baler 230 kV T/L Nueva Ecija and Aurora 2023

Power Quality

Luzon Voltage Improvement 3 Ilocos Norte, Ilocos Sur, Benguet, Pangasinan and Isabela

2018

Power Quality and Load Growth

Tuguegarao-La-lo (Magapit) 230 kV T/L Cagayan 2017

6.3.3.1 Western Luzon 500 kV Backbone (Stage 1) Existing Transmission System: The bulk power generated from Sual and Masinloc CFPP in North Luzon totaled 1,800 MW while

the capacity of the existing 500 kV backbone transmission system is 2,850 MVA per circuit. Although there is a single outage or N-1 contingency provision in the 500 kV transmission system, the long-term development plan considers a higher level of reliability up to N-2 contingency to prevent disruption of power flow in the EHV corridor, which consist of double circuit in common steel structures; and

Should there be a double circuit outage along the Bolo-Nagsaag 500 kV line, the remaining single circuit Labrador-Botolan-Subic 230 kV Line has limited capacity of 300 MVA only, hence the aggregate 1,800 MW power generation from Sual and Masinloc CFPP will be significantly constrained.


Transmission Needs: As shown in Table 4.4a in Chapter 4, the AES

Masinloc have expansion project in 2017 for additional installed capacity of 600 MW. These development will result in a total dependable capacity of about 2,400 MW to be delivered through the Bolo 500 kV Substation in Pangasinan, which would result in heavier loading for the 500 kV backbone, thus the need to establish the Western 500 kV Backbone corridor from Bolo 500 kV to Hermosa 500 kV Substations to be implemented by stages; and

With the change in installed capacity of the proposed RP Energy CFPP from 2 x 150 MW to 2 x 300 MW (2016), there is a need for a direct power delivery to Hermosa Substation as the Olongapo-Hermosa 230 kV line has insufficient capacity. From the proposed power plant to future Castillejos 500 kV Substation, which is a Connection Asset, the line will be designed at 230 kV. However, from Hermosa to Castillejos, the line will be designed at 500 kV (to be initially energized at 230 kV), since this segment (stage 1) is already part of the Western 500 kV Backbone.

Major Project Components: Castillejos-Hermosa 500 kV T/L, ST-DC, 4-795 MCM ACSR, 32 km (initially energized at

230 kV); and Hermosa 230 kV S/S Expansion, 4-230 kV PCB and associated equipment. 6.3.3.2 Laoag-Bangui 230 kV Transmission Line Existing Transmission System: Consumers in the Ilocos Region are currently drawing its bulk power requirement through San

Esteban 230 kV Substation. This is transmitted through the San Esteban-Bantay-Currimao-Laoag 115 kV transmission line were the existing 33 MW Northwind Wind Farm is connected at the Laoag 115 kV Substation. The northernmost area is presently served by the existing Laoag-Bangui 69 kV Line through the INEC-owned Burgos 69 kV Load-end Substation; and

To accommodate the wind farm projects in Ilocos Norte, NGCP is currently implementing 120 km San Esteban-Laoag 230 kV Transmission Line Project, which is one of the committed projects for the 3rd Regulatory Period.

To Malolos S/S

To Mexico S/S

To Duhat S/S

Olongapo S/S

Hermosa S/S

BCCPP

Block B

Mariveles

Plant

Bataan S/S

To San Jose S/S

BCCPP

Block A

split

Botolan

Labrador Kadampat S/S

Masinloc

RP Energy

Hanjin

Subic

Enron

500 kV-designed

(to be energized at 230 kV)


Transmission Needs: There is a need to develop a common transmission facility for the wind power plants in

northwestern Luzon in lieu of the long individual 115 kV connection lines going to Laoag 115 kV Substation. This will shorten the 115 kV connection lines for the wind power plants, thus minimize the acquisition of the right-of-way; and

The proposed Bangui 230 kV Substation will also serve as delivery point for the loads of Ilocos Norte Electric Cooperative (INEC) in the future. The implementation scheme also complements the North Luzon 230 kV Loop, which is a long-term development plan for the region.

Major Project Components: Laoag–Bangui 230 kV T/L, 1-795 MCM ACSR/AS, ST-DC, 50 km; Laoag 230 kV S/S Expansion: 4-230 kV PCB and associated equipment; and Bangui 230 kV S/S: 1-300 MVA, 230/115-13.8 kV Power Transformer, 5-230 kV PCB and

9-115 kV PCB including associated equipment. 6.3.3.3 Bolo 500 kV Substation Expansion Existing Transmission System: The Kadampat 500 kV Substation receives the power generated from Masinloc and Sual CFPP.

As the demand for power increases, more generated power is transmitted through this substation.

Transmission Needs: An additional 600 MVA capacity for Kadampat Substation is required in order to maintain the

provision for N-1 contingency during the “maximum north generation” scenario wherein Masinloc, Sual, Bakun, BPPC, Magat, Ambuklao, Binga, Pantabangan, Casecnan Power Plants are simultaneously dispatched at their maximum outputs (including future generation capacity addition).

Major Project Components: Bolo 500 kV S/S Expansion: 1-600 MVA, 500/230 kV Power Transformer, 3-500 kV PCB, and

2-230 kV PCB including associated equipment. 6.3.3.4 Nagsaag-Liberty 230 kV Transmission Line Existing Transmission System: The Province of Nueva Ecija hosts the 132 MW Pantabangan-Masiway HEPP which is

connected at Pantabangan 230 kV Substation while the power requirement of the loads is being served by NGCP’s Cabanatuan 230 kV Substation. These substations are linked to the Grid through an old single circuit 230 kV line from Nagsaag-Pantabangan-Cabanatuan-Mexico 230 kV line. With this configuration, additional generation coming from Pantabangan will no longer be accommodated.


Transmission Needs: The Nagsaag-Liberty 230 kV line project will accommodate the

proposed 600 MW Pump-Storage Hydroelectric Power Plant Project of First Gen Prime Energy Corporation. This 230 kV line project will form part of upgrading project of the old single circuit Nagsaag-Pantabangan-Cabanatuan-Mexico 230 kV line. The Liberty 230 kV Substation will also be utilized to serve the existing loads connected at the Cabanatuan-Pantabangan 69kV line. This new substation will allow to shift the loads connected at the far-end of the Cabanatuan-Pantabangan 69 kV line and will be able to cater future loads in Nueva Ecija.

Major Project Components: Liberty-Nagsaag 230 kV T/L, 4-795 MCM ACSR/AS, ST-DC, 68.0 kms; Liberty 230 kV S/S: 1-50 MVA 230/69 kV Power Transformer, Control Room, 11-230 kV PCB

and associated equipment; and Nagsaag 230 kV S/S Expansion: 3-230 kV PCBs and associated equipment. 6.3.3.5 La Trinidad-Sagada 230 kV Transmission Line (Initially Energized at 69 kV) Existing Power System: The La Trinidad-Bulalacao 69 kV line is a double circuit 69 kV sub-transmission line that was

energized in 1982. This line serves Benguet Electric Cooperative (BENECO), MOPRECO, Philex Mines, and generation from Hedcor Sinipsip. In addition, other incoming generators intend to connect to this line such as the 27 MW Tinoc Hydro, 15 MW Sagada, and 14 MW Hedcor (with additional 120 MW capacity).

Transmission Needs: In order to cater the proposed generation capacity

additions in the area which are mostly hydro power plants, the La Trinidad-Sagada 230 kV T/L is proposed. The old age and reliability issues of the existing La Trinidad-Bulalacao 69 kV line are also among the drivers for this project.

Major Project Components: La Trinidad-MOPRECO Sagada: 230 kV T/L (initially

energize at 69 kV), ST/SP-DC, 1-795 MCM, 93.25 km transmission line;

La Trinidad S/S Expansion: 2-69 kV PCB and associated equipment; and

Sagada Switching Station: 6-69 kV PCB and associated equipment.


6.3.3.6 Santiago-Dinadiawan-Baler 230 kV Transmission Line Existing Transmission System: The generation from the 360 MW Magat HEPP is being delivered to the Santiago 230 kV

Substation. The excess power from the consumption of Santiago, Gamu and Tuguegarao 230 kV Substations is then delivered to other substations through the Santiago- Bayombong-Ambuklao 230 kV lines. With the proposed expansion of Magat HEPP, it is expected that the 230 kV transmission corridor Santiago-Bayombong-Ambuklao will be overloaded during N-1 contingency; and

The northern part of the Province of Aurora is being served by NPC-SPUG and with the expected load growth, power supply reliability and adequacy are among the issues.

Transmission Needs:

The Santiago-Dinadiawan-Baler 230 kV line project will be developed as a new transmission corridor which can address the required reinforcement for the outgoing circuits from Santiago and at the same time address the power requirements in the province of Aurora to support the Aurora Pacific Economic Zone and Freeport. The project, which will also involve the development of a new substation at Dinadiawan to serve as the connection point for the Ecozone. This project also expected to be implemented by stages. Project Components: Santiago-Dinadiawan 230 kV T/L, 1-795 MCM ST-DC, 100 km; Dinadiawan-Baler 230 kV T/L, 1-795 MCM ST-DC, 52.6 km; Santiago 230 kV S/S: 4-230 kV PCB and associated equipment; Dinadiawan 230 kV S/S: 1-50 MVA 230/69 kV Transformer, 8-230 kV PCB and associated

equipment; and Baler 230 kV S/S: 6-230 kV PCB and associated equipment. 6.3.3.7 Mexico-San Simon 69 kV Transmission Line

Existing Transmission System: The Mexico-MIC 69 kV Line, Mexico-SKK40 69 kV Line and the Mexico-CSPA 69 kV Line

serving the area of San Simon and the steel plants in the area are already at their maximum delivery capacity and can no longer accommodate any new big developments such as new steel plants. The local government of San Simon is very optimistic that more steel plants will be coming in, making San Simon the “Steel Plant Capital” of the country. Since most of the steel plants require connection to higher transmission voltage level, the grid should be augmented to allow connection.


Transmission Needs: The Mexico-San Simon 69 kV Line is the first stage of the

development to address the incoming steel plants and load growth in San Simon. To serve the immediate needs of the new steel plants, additional 69 kV lines should be put-up. If more steel plants or other industrial facilities will be built in San Simon in the future, a new 230 kV drawdown substation will be the long term solution.

Project Components: Mexico-San Simon 69 kV T/L, ST/SP-DC, 410 mm2 TACSR, 8.0 km; and Mexico S/S Expansion: 2-69 kV PCB and associated equipment.

6.3.3.8 Hermosa-Floridablanca 69 kV Line Existing 69 kV Transmission System: The existing Hermosa-Guagua 69 kV line is a 53 year old asset

and is among the subtransmission lines already reverted by the ERC to NGCP’s Regulatory Asset Base (RAB).

Transmission Needs: The said line has insufficient transfer capacity to accommodate

load growth. With this, the new Hermosa-Floridablanca 69 kV line is proposed to ensure the capacity and reliability of supply for the connected customers in the area namely, Pampanga II Electric Cooperative Inc. (PELCO II), San Fernando Electric Light and Power Company (SFELAPCO) and Basa Air Base

Major Project Components: Hermosa-Floridablanca 69 kV kV T/L, 1-795 MCM ACSR,

SP-SC, 16.86 km; and Basa Air Base-100D 69 kV kV T/L, 1-795 MCM ACSR, SP-SC,

2.86 km.


6.3.3.9 San Simon 230 kV Substation Existing Transmission System: The Mexico 230 kV Substation caters almost the entire load of Pampanga, which hosts several

industries including steel plants. In particular, Mexico-MIC and Mexico-CSPA 69 kV Lines currently serves the load of MIC 1st, Melters, CIGI, SKK20, Currimao and Formosa; and

With the projected load growth due to these existing industries and the anticipated entry of new steel plant customers in the area, these 69 kV facilities has limited transfer capacities to supply the power requirements.

Transmission Needs: To address the limited capacity of Mexico-MIC and Mexico-CSPA 69 kV Lines in the long term to

cater the load growth and the entry of new steel plant customers in the area, there is a need to establish a new drawdown substation in San Simon. The next issue to be addressed is the limited capacity of the 69 kV outgoing feeders.

Major Project Components: San Simon 230 kV S/S: 1-300 MVA, 230/69-13.8 kV Power Transformer, 5- 230 kV PCB and

9-69 kV PCB and associated equipment; and 230 kV T/L Extension from the “bus-in” point to San Simon 230 kV S/S: 2-795 MCM ACSR, ST-

DC, 4 km.

6.3.3.10 Luzon Substation Expansion 5 Existing Transmission System: Nagsaag, San Manuel, Limay and Cabanatuan 230 kV Substations serve various consumers in

Pangasinan, Nueva Ecija and Bataan provinces. Transmission Needs: To meet the projected increase in demand in the planning horizon, there is a need to increase

the substation capacity in each substation through the installation of additional power transformers.

Major Project Components: Nagsaag S/S Expansion: 1- 100 MVA 230/69-13.8 kV Power Transformer, 2- 69 kV PCB and

associated equipment; San Manuel S/S Expansion: 1- 100 MVA, 230/69-13.8 kV Power Transformer, 2- 69 kV PCB and

associated equipment; Hermosa S/S Expansion: 1-100 MVA, 230/69-13.8 kV Power Transformer; Limay S/S Expansion: 1-100 MVA, 230/69-13.8 kV Power Transformer (to replace the existing

50 MVA); and Cabanatuan 230 kV S/S: 1-300 MVA, 230/69-13.8 kV Power Transformer (to replace the existing

100 MVA).


6.3.3.11 Nagsaag – San Manuel 230 kV Tie Line Upgrading Existing Transmission System: The 180 MW Casecnan, 400 MW San Roque and 100 MW Pantabangan HEPP are connected

to the Luzon Grid through Nagsaag 230 kV Substation. The generated power from these hydroelectric plants are delivered to the load centers via the 500 kV transmission backbone and the 230 kV transmission corridors of San Manuel–Concepcion–Mexico and the Nagsaag– Pantabangan–Cabanatuan–Mexico; and

Presently the 230 kV tie-line between Nagsaag and San Manuel 230 kV Substations is single circuit only, thus an outage would result in low voltage issues and overloading of the Pantabangan–Cabanatuan 230 kV line.

Transmission Needs: The result of network assessment has determined the need to upgrade the existing 230 kV tie

line from single circuit to double circuit between the San Manuel and Nagsaag 230 kV Substations to avoid the overloading of 52.47 km Pantabangan–Cabanatuan 230 kV Line and address voltage problem in the area during contingency event.

Major Project Components: Nagsaag-San Manuel 230 kV T/L, SP-DC, 2-410 mm2 TACSR, 1.0 km; Nagsaag S/S Expansion: 6-230 kV PCB and associated equipment; Binga-San Manuel 230 kV T/L Extension, SP/ST-DC, 2-795 MCM ACSR, 4 km; and San Manuel S/S Expansion: 2-230 kV PCB and associated equipment. 6.3.3.12 Magalang 230 kV Substation Existing Transmission System: The Mexico-Clark 69 kV Line 1 and Mexico-Clark 69 kV Line 2 serving the area of Mabalacat,

Clark and Angeles City are reaching their maximum delivery capacity due to the substantial load growth in the area. Angeles Electric Corporation (AEC) and Clark Electric Distribution Corporation (CEDC) have expressed difficulty in developing new 69 kV lines from Mexico Substation due to Right-of-Way issues. Further increase in load is expected due to big developments in the area such as Global Gateway Logistics City, expansion projects of Yokohama, SM City and INGASCO.

Transmission Needs: The Magalang 230 kV Substation aims to serve the new and growing loads in Mabalacat, Clark

and Angeles City and it will also provide enough capacity for future developments. The Magalang 230 kV Substation will bus-in along the existing Concepcion-Mexico 230 kV Line.

Project Components: Extension from the bus-in point (Concepcion side) to Magalang Substation: 230 kV, ST-DC,

2-410 mm2 TACSR, 0.1 km;


Extension from the bus-in point (Mexico side) to Magalang Substation: 230 kV, ST-DC, 2-410 mm2 TACSR, 0.1 km; and

Magalang 230 kV S/S (New): 1-100 MVA, 230/69-13.8 kV Power Transformer, 9-230 kV PCB, 11-69 kV PCB and associated equipment.

6.3.3.13 Pantabangan 230 kV Switchyard Upgrading Existing Transmission System: The Pantabangan HEPP and its 230 kV switchyard were constructed by the National Power

Corporation in 1974. In 2003, the power plant was sold to First Gen Hydro Power Corporation (FGHPC) while the 230 kV switchyard remained a transmission asset; and

From 2009 to 2011, FGHPC has already rehabilitated/upgraded the plant’s 2-64 MVA power transformers and 2-50 MW generators with 2-75 MVA and 2-65 MW units, respectively. However, the existing 230 kV switchyard remained due for rehabilitation.

Transmission Needs and Other Consideration: In 2013, the power circuit breakers and associated equipment in the said switchyard arranged in

a ring-bus configuration are already 39 years old and nearing its 40-year asset life; Given the old age and the deteriorated condition of this switchyard as manifested in its

maintenance history, the switchyard is already due for rehabilitation/replacement. In addition, the non-availability in the market of spare parts for the old equipment has been among the maintenance issues; and

It can be noted also that the power plant connected to said switchyard has black start capability and is among the priority plants that could supply the initial power needed in the recovery of Luzon Grid in the event of a system blackout.

Major Project Components: Pantabangan Switchyard Upgrading: 4-230 kV PCB and associated equipment, 10-230 kV DS,

Secondary Equipment and New Control Building.

6.3.3.14 La Trinidad-Calot 69 kV Transmission Line Existing 69 kV Transmission System: The La Trinidad-Calot 69 kV Line serves Benguet Electric

Cooperative (BENECO) and Hedcor wherein the former load-end substations are tap-connected along the single circuit line, while Hedcor (Ampohaw and Asin, with an aggregate installed capacity of 22.85 MW) small hydro generator units are connected at the end of the said line; and

Constructed in 1956, the La Trinidad-Calot (wood-pole) 69 kV Line has already surpassed its economic life.


Transmission Needs: There is already an urgent need to rehabilitate the existing La Trinidad-Calot 69 kV line to

improve its reliability, provide N-1 contingency and increase the power transfer capacity to meet the forecasted increase of load.

Project Components: La Trinidad–Calot 69 kV T/L, Double Circuit 1-795 MCM ACSR, 17 km. 6.3.3.15 Ilocos Region Substation Upgrading Existing Transmission System: The substations in Ilocos Region will need to be more reliable in the face of increasing load and

development. In Laoag and Labrador, overloading will be experienced during the outage of one of the installed units. Bacnotan on the other hand, has only one transformer unit and in San Manuel, the transformers will lose N-1 provision because of load growth.

Transmission Needs: To meet the projected increase in demand in the planning horizon and maintain the N-1

contingency provision, there is a need to increase the substation capacity through the installation of additional power transformers.

Project Components: Laoag 115 kV S/S: 1-100 MVA, 115/69 kV Power Transformer; Bacnotan 230 kV S/S: 1-50 MVA, 230/69 kV Power Transformer; San Manuel 230 kV S/S: 1-100 MVA, 230/69 kV Power Transformer, 2-69 kV PCB and

associated equipment; Labrador 230 kV S/S: 1-100 MVA, 230/69 kV Power Transformer; 6.3.3.16 Cagayan Valley Substation Upgrading Existing Transmission System: The Bayombong Substation in Cagayan Valley needs to be upgraded to cater the incoming load

of FCF Minerals and accommodate the load growth in the area. Transmission Needs: To meet the projected increase in demand in the planning horizon and maintain the N-1


Project Components: Bayombong 230 kV S/S: 1-100 MVA, 230/69 kV Power Transformer.


6.3.3.17 Central Luzon Substations Upgrading Existing Transmission System: The economic developments in Central Luzon will result in further increase in load. Industrial and

commercial projects as well as the possibility of developing more 230 kV lines from Hermosa will trigger the need for additional substation capacity. In Limay, overloading will be experienced during outage of one of the installed units and in San Jose the problem with the unsynchronized transformer unit should also be addressed.



Project Components: Hermosa 230 kV S/S: 1-100 MVA, 230/69-13.8 kV Power Transformer, 2-230 kV PCB and

associated equipment; Limay 230 kV S/S: 1-100 MVA, 230/69-13.8 kV Power Transformer; and San Jose 230 kV S/S: 1-300 MVA, 230/115 kV Power Transformer.

6.3.3.18 Gamu 230 kV Substation Expansion Existing Transmission System: The Gamu 230 kV Substation serves the loads of ISELCO and NIA through the lone 50 MVA,

230/69-13.8 kV transformer. This substation is connected through “cut-in” along the Santiago – Tuguegarao 230 kV single circuit line. While this substation was only energized sometime in 2007, this was built using an old transformer and used equipment from other substations.

Transmission Needs: The implementation scheme requires additional new power transformer, replacement of old

substation equipment, etc. and link the incoming Santiago-Tuguegarao 230 kV Line 2, which is a committed project for the 3rd Regulatory Period.

Major Project Components: Gamu S/S Expansion: 1-50 MVA, 230/69-13.8 kV Power Transformer, 6-230 kV PCB and 1-69

kV PCB and associated equipment; and 230 kV Line Extension from the Bus-in point to Gamu 230 kV S/S: ST-SC, 1-795 MCM ACSR,

1 km.


6.3.3.19 Nagsaag 500 kV Substation Expansion Existing Power System: The Nagsaag 500 kV Substation receives power generation from the north which is then

delivered to Metro Manila. Presently this substation consists only of 1-600 MVA, 500/230 kV transformer.

Transmission Needs: There is a need to improve the system reliability and operational flexibility at Nagsaag 500 kV

Substation through the installation of the second 600 MVA transformer unit. Major Project Components: Nagsaag 500 kV S/S Expansion: 1-600 MVA 500/230 kV Power Transformer, 1-500 kV PCB,

1-230 kV PCB and associated equipment.

6.3.3.20 Currimao Substation Expansion Existing Transmission System: Currimao 115 kV Substation, which is presently at single bus configuration, serves the loads of

INEC through a 20 MVA 115/69-13.8 kV transformer.

Transmission Needs: To maintain the reliability and operational flexibility in serving the power requirements of the

consumers in southern part of Ilocos Norte, there is a need to install additional power transformer and reconfigure the substation from single bus to breaker-in-a-half scheme. This proposed implementation scheme supports the distribution development plans of INEC, which include the development of a 69 kV load-end substation and 69 kV subtransmission line in the area; and

Moreover, the proposed breaker-in-a half scheme with additional power transformer would cater the proposed connection of both Ilocos Sur Electric Cooperative (ISECO) and Abra Electric Cooperative (ABRECO) to make Currimao Substation as an alternate supply source, thus improving reliability and operational flexibility for their respective loads. Finally, the Currimao Substation will also be the receiving substation for the grid-connection of the 20 MW Mirae Solar PV project proposed by Mirae Asia Energy Corporation (MAEC).

Major Project Components: Currimao S/S Expansion: 1-50 MVA 115/69-13.8 kV Power Transformer, 6-115 kV PCB,

14-69 kV PCB and associated equipment including lot acquisition.


6.3.3.21 Castillejos 230 kV Substation Existing Transmission System: The Olongapo Substation, which is 39 years old already, is a single-bus configured substation,

such that any fault or failure in the main bus could result in outage of the entire substation. This substation has no more available space for expansion.

Transmission Needs: There is a need to ensure the reliability of supply to the loads of more than 80 MW being served

by the existing Olongapo Substation and at the same time prevent any disruption in the 230 kV transmission line from Hanjin Shipyard’s Substation to Hermosa Substation; and

The proposed Castillejos 230 kV Substation should be in place first before Olongapo Substation could be reconfigured from the existing single-bus to breaker-and-a-half scheme. This is intended to limit power interruptions to the consumers during the reconfiguration of the old Olongapo Substation.

This new substation will be connected to the Western 500 kV Backbone (Stage 1).

Major Project Components: Castillejos 230 kV S/S: 2-100 MVA, 230/69-13.8 kV Power Transformer, 10-230 kV PCB and

5-69 kV PCB and associated equipment. 6.3.3.22 Hermosa–Clark 230 kV Transmission Line

Existing Transmission System: The Clark 230 kV Substation is presently connected radially to the Concepcion 230 kV

Substation through a 20.42 km, 1-795 MCM ACSR double circuit line. With the loads of Clark requiring higher reliability of power supply, an alternate source of power is required in the long term through loop connection.

Transmission Needs: The Hermosa-Clark 230 kV T/L project will provide higher reliability of power supply to the Clark

230 kV Substation by looping the Concepcion-Clark 230 kV line. This project is in lieu to the previously proposed Mexico-Clark 230 kV line.

There is also an incoming new load (Alviera) in the area of Porac, Pampanga wherein a draw down substation could be built along the Hermosa – Clark 230 kV line.

Major Project Components: Hermosa-Clark 230 kV T/L, ST/SP-

DC, 795 MCM ACSR/AS, 53.8 km; Hermosa S/S Expansion: 4-230 kV

PCB and associated equipment; and Clark S/S Expansion: 4-230 kV PCB

and associated equipment.


6.3.3.23 Liberty-Baler 230 kV Transmission Line Existing Transmission System: The AURELCO load in Baler, Aurora is being served by NGCP’s Cabanatuan 230/69-13.8 kV

substation through an 80-km Cabanatuan-Talavera-Bongabong-Baler 69 kV line. Aside from AURELCO, this line also serves other loads such as NEECO and NEA. With the anticipated growth of these loads, it is also expected that low voltage issues will be experienced in the area due to the length of the 69 kV line.

Transmission Needs: The Liberty-Baler 230 kV line project (initially energized at 69 kV)

will provide improvement in the reliability of supply as well voltage quality in Baler, Aurora, which is presently being served by a long 69 kV line from Cabanatuan Substation. This line will also support the development of line extension going to Casiguran and will serve as a link to connect other loads in Aurora Province which are not Grid connected yet.

Project Components: Liberty-Baler 230 kV T/L: 1-795 MCM ST-DC, 56.5 km; Liberty 69 kV S/S: 4-69 kV PCB and associated equipment; and Baler 69 kV S/S: Control Room, 4-69 kV PCB and associated equipment.

6.3.3.24 Luzon Voltage Improvement 3 Existing Transmission System: Various 230 kV and 115 kV substations in north Luzon: Laoag, San Esteban, Bantay,

Tuguegarao, Botolan, Mexico and San Jose provide transmission service to the DUs and electric cooperatives in their respective provinces. Likewise, there are 69 kV load-end substations, such as those in Itogon, Benguet and Pantabangan in Nueva Ecija that provides similar service to the consumers. The Nagsaag 500 kV Substation serves as the bulk power delivery point in the 500 kV system serving north Luzon provinces.

Transmission Needs: The network analyses conducted have identified these 230 kV, 115 kV substations, 69 kV load-

end substations as well as the 500 kV substation in north Luzon that will experience low voltage problems during peak load and overvoltage problems during off peak condition in the coming years, as the power demand continue to increase; and

To maintain the 500 kV, 230 kV, 115 kV and 69 kV system voltages within the PGC-prescribed limits both during normal and N-1 contingency condition requires the installation of capacitor banks and shunt reactors at the identified substations in north Luzon.


Major Project Components: Laoag 230 kV S/S: 2-25 MVAR, 230 kV Shunt Reactors; San Esteban 230 kV S/S: 2-25 MVAR, 230 kV Shunt Reactors; Tuguegarao 230 kV S/S: 1-25 MVAR Capacitor Bank and 1-25 MVAR, 230 kV Shunt Reactor; Botolan 230 kV S/S: 1-25 MVAR 230 kV Shunt Reactor; Mexico 230 kV S/S: 1-100 MVAR 230 kV Capacitor Bank; San Jose 230 kV S/S: 1-100 MVAR 230 kV Capacitor Bank Bantay 115 kV S/S: 1-7.5 MVAR, 115 kV Capacitor Bank; Itogon Load-end 69 kV S/S: 1-7.5 MVAR, 69 kV Capacitor Bank; Pantabangan Load-end 69 kV S/S: 2-5 MVAR, 69 kV Capacitor Banks; and Nagsaag 500 kV S/S: 1-90 MVAR, 500 kV Shunt Reactor. 6.3.3.25 Tuguegarao-Lal-lo (Magapit) 230 kV Transmission Line Existing 69 kV Transmission System: The province of Cagayan is presently being served by the Tuguegarao 230/69-13.8 kV

Substation with more than 120 km of 69 kV wood pole transmission line from Tuguegarao to Magapit and then to Sta. Ana; and

With low voltage issues in the area due to the very long 69 kV line, the ERC approved the Magapit Capacitor Project will provide the short-term solution to improve the power quality to the consumers.

Transmission Needs: It is forecasted that the Tuguegarao-Magapit 69 kV line will be overloaded by 2017, thus a new

line with higher capacity and at higher voltage is needed to meet the increasing load in the northern part of Cagayan province;

With the low voltage issues due to the very long 69 kV wood pole transmission line from Tuguegarao to Magapit which has also exceeded its economic life, the proposed long-term solution to improve the power quality and reliability of transmission service in the province is the extension of the 230 kV transmission line from Tuguegarao to Lal-lo; and

The proposed extension is part of the planned Northern Luzon 230kV Looping Project in support of the development of wind farms in the area.

Major Project Components: Tuguegarao–Lal-lo(Magapit)

230 kV T/L, ST-DC, 1-795 MCM ACSR/AS, 64 km;

Tuguegarao S/S Expansion: 3-230 kV PCB and associated equipment; and

Lal-Lo S/S: 2-50 MVA, 230/69-13.8 kV power transformer, 6-230 kV PCB, 8-69 kV PCB and associated equipment.

64 km


6.3.4 Overall Benefits After the Implementation of Proposed Transmission Projects for North Luzon

The completion of all Generation Entry-driven transmission projects in North Luzon, i.e., Ilocos Norte, Benguet, Pangasinan, Zambales, Bataan and Bulacan, will complement the programmed generation capacity in the next 10 years, thus ensure full dispatch through a more resilient and reliable transmission system. Three of these seven transmission line projects are already part of a long-term strategy geared towards the formation of 500 kV Luzon Backbone Loop and Northern Luzon 230 kV transmission loop that aim to improve the system reliability. On the other hand, as the power demand continue to increase in the coming years, the completion of Load Growth, System Reliability and Power Quality-driven transmission projects located in the Cordillera Autonomous Region, Ilocos Region, Central Luzon and Zambales-Bataan areas will ensure a more reliable 230 kV and 69 kV power delivery system towards the end-users of electricity. Moreover, low voltage occurrence, especially the consumers in far-flung areas in North Luzon with no local power generation, will also be addressed both during normal and contingency conditions through the installation of capacitor banks and shunt reactors in various substations.


6.4 National Capital Region In the absence of baseload power plants within the NCR or Metro Manila to provide reactive power support, the transmission facilities being implemented include the 2-50 MVAR, 115 kV Capacitor Banks each in Muntinlupa and Doña Imelda Substations, which are project components under the Luzon Voltage Improvement Project 1. This is intended to address the power quality issues within Metro Manila. 6.4.1 Proposed Transmission Projects for 2016-2023 As the country’s financial, commercial and industrial center, it is evident that the power requirement for the Luzon Grid is concentrated in Metro Manila. The power requirement of Metro Manila is dependent on the power imports from the northern and southern parts of the region. To provide bigger room for capacity expansion, extension and augmentation of the existing single circuit 230 kV lines that linking the northern and southern part of Metro Manila, establishment of new 230 kV drawdown substations and 500-kV loop within the metropolis are necessary to serve the power supply requirements in the long term. The following goals were considered in the system model used in the conduct of network analysis: a) The need to meet the projected demand of various load centers within Metro Manila considering

that aggregate load of 4,331 MW which accounts to about 53 % of the entire load of Luzon and 40 % of the whole country;

b) The need to extend the existing 230 kV T/L and establish new drawdown substations to relieve

the load of existing substations, thus provide a more efficient transmission service to the customers;

c) The need to meet the bulk power transfer requirement between North and South Luzon towards

the NCR; and

d) The need to maintain compliance with the PGC-prescribed power quality standards and to

improve overall system reliability in the Luzon Grid. Table 6.3 shows the substations and the major backbone transmission projects planned in the period 2016-2023 which intends to efficiently serve the bulk power requirement in the NCR.


Table 6.3: Proposed Transmission Projects for NCR

Project Name/Driver(s)

Province

ETC


Las Piñas 230 kV Substation Expansion Metro Manila 2016

Pasay 230 kV Substation and Associated 230 kV T/L Metro Manila 2019

Baras (Antipolo)-Taguig 500 kV T/L (Initially energized at 230 kV)

Metro Manila and Rizal 2019

Manila 230 kV Substation and Associated 230 kV T/L Metro Manila 2020

Taguig-Alaminos 500 kV T/L and Taguig 500 kV Substation (Feasibility Study)

Metro Manila and Laguna

Generation Entry

Bataan – Cavite 500 kV T/L (Feasibility Study) Bataan and Cavite

Hermosa - San Jose 500 kV T/L Bataan and Bulacan 2020

Load Growth and Congestion Alleviation

Baras (Antipolo) 500 kV Substation Rizal 2018

The conduct of Feasibility Study for Bataan-Cavite and Taguig-Alaminos 500 kV Line projects, which will be submitted to the ERC for approval, are targeted for completion in 2015. However, pending the conduct and completion of such Feasibility Studies, the project details for these two projects shall be included in the next TDP update. 6.4.1.1 Las Piñas 230 kV Substation Expansion Existing Transmission System and Regulatory Matters: Las Piñas Substation, with 3 x 300 MVA, 230/115-13.8 kV power transformers, is one of the six

existing substations serving Metro Manila, which is the major load center of Luzon Grid. To meet the ever increasing demand, installation of additional power transformers or development of a new substation are the project options considered.

Transmission Needs: Considering the critical role of Las Piñas Substation, the immediate implementation of the 4th power transformer unit is urgently needed due to the following: The substation is loaded more that 85 % already under normal condition and any outage of one

transformer would result in overloading of the remaining transformer in service. Thus, it has no more provision for single-outage or N-1 contingency which is a reliability standard of the PGC. The present situation is very detrimental for the reliability of power supply to Metro Manila;

In March-April 2012, when one transformer at Las Piñas Substation was damaged, sub-sectorization of the 115 kV distribution network of Meralco was implemented to avoid load shedding. This resulted in both reliability and low voltage issues as the 115 kV lines connected to Las Piñas Substation were put on radial configuration; and

Las Piñas Substation is critical to the successful operation of the WESM, hence without N-1 contingency, pricing error notices were declared for some trading intervals in the market due to constraint violations.


Major Project Components: Las Piñas S/S Expansion: 1-300 MVA, 230/115-13.8 kV Power Transformer, 3 Bays 230 kV

PCB and associated equipment (GIS), S/S Automation Control System (SACS) Expansion, Transformer Protection and Breaker Failure Relays.

6.4.1.2 Pasay 230 kV Substation and Associated 230 kV Transmission Line Existing Transmission System: The distribution system under Sector 3 of MERALCO covers Pasay City, Makati City, Muntinlupa

City and Taguig City and the bulk power transmission is being served through Las Piñas and Muntinlupa Substations. The substation capacity expansions through the installation of 4th transformer will be completed for Muntinlupa Substation and another transformer unit will also be installed in Las Pinas Substation.

Transmission Needs: The 4th transformer for both Muntinlupa and Las Piñas Substations are short and medium-term

solution only to address the increasing load and to provide single outage (N-1) contingency, hence to address the ever-increasing demand in the long-term, especially in the existing Central Business Districts (CBD) of Makati and Taguig Cities as well as the emerging Central Business Park (CBP) in Pasay City, a new bulk power delivery point is needed by the system.

Major Project Components: Pasay 230 kV S/S: 2-300 MVA, 230/115-13.8 kV Power Transformer, 2-50 MVAR, 115 kV

Capacitor Banks, 6-230 kV PCB (GIS) and 9-115 kV PCB (GIS) and associated equipment; and Las Piñas-Pasay 230 kV T/L, SP-DC, 4-795 MCM ACSR/AS, 21 km. 6.4.1.3 Baras (Antipolo)-Taguig 500 kV Transmission Line (Initially Energized at 230 kV) and

Taguig 230 kV Substation Existing Transmission System: The demand of Metro Manila was supplied by the generation import coming the northern and

southern part of the Luzon Grid. The power exchange vis-à-vis from north to south of Metro Manila transmission network relies heavily on the Quezon-Doña Imelda- Muntinlupa single circuit 230 kV line; and

To meet the increasing power demand, the generation being delivered to Manila, through the Quezon-Doña Imelda-Paco-Muntinlupa single circuit 230 kV line will become heavily loaded and will lose its N-1 contingency. Furthermore, the outage of one circuit along this corridor will result in severe undervoltage.


Transmission Needs: The Baras (Antipolo)-Taguig 500 kV line is Stage 1 of the Metro Manila 500 kV Backbone. This

project will initially be energized at 230 kV and will cut-in through the Muntinlupa-Paco 230 kV line; and

This project will decongest the loading of Muntinlupa-Paco 230 kV line during maximum south generation dispatch. This will also provide additional reactive support from the Antipolo 230 kV Substation to Metro Manila.

Major Project Components: Baras (Antipolo)-Taguig 500 kV T/L (initially energized at 230 kV) , 4-795 MCM ACSR/AS,

ST-DC, 7.3 km, and 4-795 MCM ACSR/AS, SP-SC, 2-16 km; Baras (Antipolo) S/S Expansion: 4-230 kV PCB and associated equipment; and Taguig 230 kV S/S cut-in to Muntinlupa-Paco 230 kV T/L; 2-410 mm2 TACSR, SP-SC, 2-

2.4 km; and

Taguig 230 kV S/S: 2-50 MVAR, 230 kV Capacitor Banks and 10-230 kV PCB and associated equipment.

6.4.1.4 Manila 230 kV Substation and Associated 230 kV Transmission Line Existing Transmission/Distribution System: The distribution system under Sector 1 of MERALCO covers part of Bulacan, Quezon City,

Caloocan and Manila and the bulk power transmission is being served through Marilao, Quezon and Paco 230 kV Substations. At present, these substations are already loaded ranging from 55-71% during normal condition. During single outage event (N-1 or outage of one power transformer), however, Marilao Substation could already experience slight overloading. As such, a Special Protection System (SPS) is installed to drop loads in case of an outage of one of its two 300 MVA, 230/115 kV power transformers to prevent overloading of the remaining transformer.

Transmission Needs: The existing and projected demand of each substation for 10 years was assessed through

system study. The result of system simulation conducted shows the following per cent overloading during N-1 event in 2018: Marilao (2-300 MVA)-123 %, Quezon (4-300 MVA)-100 % and Paco (3-300 MVA)-102 %. Therefore, to prevent any power disruption to the customers within Sector 1 of MERALCO, there is a need for a new 230 kV drawdown substation considering also the expansion constraints in the said substations; and

The proposed Manila 230 kV Substation will be temporarily linked to the grid through “cut-in” connection along the existing Marilao-Quezon 230 kV line and ultimately terminated to the new 500/230 kV substation in Marilao in the future. Furthermore, due to the difficulty in looking for a wider area for a conventional substation in the vicinity of Tondo, Manila, a Gas Insulated Switchgear (GIS) substation is being considered.


Major Project Components: Manila 230 kV S/S: 2-300 MVA, 230/115-13.8 kV Power Transformer, 2-50 MVAR, 115 kV

Capacitor Banks, 6-230 kV PCB (GIS) and 9-115 kV PCB (GIS) and associated equipment; and From Marilao-Quezon cut-in point to Manila S/S, 230 kV SP-DC, 4-795 MCM ACSR/AS, 21 km.

6.4.1.5 Taguig-Alaminos 500 kV Transmission Line and Taguig 500 kV Substation

(Metro Manila 500 kV Backbone Stage 2) Existing Transmission System: As the demand in Metro Manila continues to increase, the 500/230 kV drawdown substations

become heavily loaded. The 500 kV Substations serving Metro Manila are San Jose (4-750 MVA), Dasmariñas (4-600 MVA) and the proposed Antipolo (2-750 MVA); and

With the anticipated bulk power generation coming from LNG and CFPP in the Southern part of Luzon Grid, the Dasmariñas 500 kV Substation will lose its N-1 contingency. Furthermore, the Tayabas-Antipolo 500 kV line will be heavily loaded.

Transmission Needs: The Taguig 500 kV Substation will decongest the Dasmariñas 500 kV Substation. Furthermore,

the Alaminos-Taguig 500 kV Line will also decongest the Tayabas-Antipolo 500 kV Line which will complete the 500 kV loop in the southern part of Luzon Grid.

Major Project Components: Alaminos-Taguig 500 kV T/L, 4-795 MCM ACSR/AS, ST-DC, 74.49 km; Taguig 500 kV S/S: 2-750 MVA, 500/230-13.8 kV Power Transformer, 10-500 kV PCB and

associated equipment; Dasmariñas 500 kV T/L Extension, 4-795 MCM ACSR/AS, ST-DC, 0.50 km; Tayabas 500 kV T/L Extension, 4-795 MCM ACSR/AS, ST-DC, 0.50 km; Ilijan 500 kV T/L Extension, 4-795 MCM ACSR/AS, ST-DC, 0.50 km; and Alaminos S/S, 12-500 kV PCB and associated equipment. 6.4.1.6 Hermosa-San Jose 500 kV Transmission Line Existing Transmission System: At present, the only direct 230 kV transmission line from the existing power plants in Bataan and

Zambales provinces to the load centers in Bulacan and Metro Manila is the Hermosa-Marilao-Quezon single circuit line with the maximum transfer capacity of 600 MVA.

Transmission Needs: Hermosa Substation will serve as a merging point of the bulk generation coming from the

existing Limay CCPP, Subic Enron DPP, Mariveles CFPP and the programmed power plants, such as RP Energy and SMC Global CFPP, Petron RSFF and Sta. Rita Solar PV. With an aggregate dependable capacity of about 3,000 MW from the existing and incoming power plants,


the system study conducted has determined the need to develop additional outgoing circuits from Hermosa to San Jose Substation to allow simultaneous maximum dispatch of power generated from these power plants; and

In addition, during contingency events in the existing 500 kV backbone, portion of the generation output of Sual and Masinloc CFPP will also be using this proposed 500 kV line via the Bolo-Hermosa transmission corridor.

Major Project Components: Hermosa-San Jose 500 kV

T/L, ST-DC, 4-795 MCM ACSR, 83 km;

Hermosa S/S Expansion: 4-230 kV PCB and associated equipment; and

San Jose S/S Expansion: 4-230 kV PCB and associated equipment.

6.4.1.7 Baras (Antipolo) 500 kV Substation Existing Transmission System: There are two existing 500 kV drawdown substations that share about 60% of the power

requirements of load centers in Luzon Grid: the San Jose 500 kV Substation in the north of Metro Manila and the Dasmariñas 500 kV Substation in the south;

San Jose is the main merging point of bulk generation coming from Masinloc and Sual CFPP from the north via Bolo 500 kV S/S and QPPL while Pagbilao CFPP from the south via the Tayabas 500 kV S/S;

San Jose Substation is presently arranged in a ring-bus configuration which further adds to its criticality due to the limited flexibility of its operation; and

Furthermore, during maintenance or outage of one 500/230 kV transformer banks in San Jose Substation, the operation of the remaining transformers will be limited to prepare for the next N-1 contingency. Thus, in such a scenario, there is a probability to dispatch more expensive oil-based power plants that affect the consumer’s power rates.

Transmission Needs: To reduce the criticality and allow operational flexibility during outage or maintenance of a

500/230 kV transformer bank in San Jose, there is a need to relieve or reduce the loading of San Jose Substation; and

Thus, the proposal to develop the Antipolo 500 kV Substation, “bus in” along the existing San Jose-Tayabas 500 kV line to augment the function being performed by San Jose and significantly reduce its criticality.


Major Project Components: Antipolo-San Jose 500 kV Line Extension: 500 kV, ST-DC, 4-795 MCM ACSR, 9 km; Antipolo-Tayabas 500 kV Line Extension: 500 kV, ST-DC, 4-795 MCM ACSR, 8.5 km; and Antipolo 500 kV S/S: 10-500 kV PCB, 3-230 kV PCB and associated equipment, 7-250 MVA,

500/230 kV Power Transformers and 1-100 MVAR, 230 kV Shunt Reactor.

6.4.2 Overall Benefits after the Implementation of Proposed Transmission Projects for the National Capital Region

The immediate energization of the 4th 300 MVA transformer under the Las Piñas Substation Expansion in 2016, and the establishment of three new drawdown 230 kV substations in Pasay, Manila and Taguig in the 2019-2020 period will ensure a more reliable 230 kV power delivery system towards Metro Manila in the next ten years. Although intended to address load-growth in the short-term, the completion of two 500 kV transmission lines and one 500 kV substation in the period 2018-2020 are also part of a long-term plan for a reliable 500 kV Luzon Backbone to complement the 230 kV system linking the load centers in the NCR. Furthermore, the anticipated entry of baseload power plants both in South and North Luzon requires first the conduct of Feasibility Study (FS) each for the proposed Bataan-Cavite (with submarine cable via the Manila Bay) and the Taguig-Alaminos 500 kV Transmission Line Projects. The completions of the FS reports will firm up the CAPEX requirement as well as the timing or target completion of said major transmission projects. The completion of these proposed transmission projects will provide benefits to the end users in terms of improved system reliability, acceptable power quality, improved security of supply in the long-term and a more competitive generation rate, as a result of well-managed transmission congestion.


6.5 South Luzon The South Luzon area is composed of three O & M Districts: Batangas – Cavite, Laguna – Quezon provinces and the Bicol Region which consists of four provinces connected to the Luzon Grid: Camarines Sur, Camarines Norte, Albay and Sorsogon. The 2013 peak demand is 611 MW or about 7.36% of the entire peak demand in the Luzon Grid. As discussed in Section 3.3, the Southern Transmission Corridor consists of ± 350 kV HVDC (portion of Leyte-Luzon HVDC Interconnection System), 500 kV and 230 kV AC transmission system. Power generation in South Luzon is dominated by Natural Gas Power Plants: 1,060 MW Sta Rita, 1,271 MW Ilijan and 530 MW San Lorenzo, while Geothermal Power Plants include 442.8 MW Makban, 130 MW Bacman, 234 MW Tiwi and 17.2 MW from Makban Binary and Manito. Large HEPP include the 739.2 MW Kalayaan PSPP, 35 MW Caliraya and 22.8 MW Botocan, while Small HEPP provides an aggregate installed capacity of 4.7 MW. Power generation is further augmented by 650 MW Malaya Thermal Plant. The comparison between peak demand and the total dependable capacity shows that South Luzon is a net exporter of power, either towards the NCR or to the Visayas. 6.5.1 Ongoing Transmission Projects for the 3rd Regulatory Period Aside from the completed projects for the period 2011-2013, as shown in Table 5.1, considered in the system simulation are the target completion of the ongoing projects for 2014-2015 period (remaining years of 3rd Regulatory Period) in various stages of implementation, with the following details and corresponding project drivers: a) Congestion Alleviation:

Lumban-Bay 230 kV T/L Upgrading Project, 40 km which includes Lumban Substation composed of 18-230 kV PCB and associated equipment; and

Dasmariñas 500 kV S/S Expansion, which includes 1-600 MVA, 500/230 kV and 1-300 MVA, 230/115 kV power transformers and 2-500 kV PCB, 14-230 kV PCB, 2-115 kV PCB and associated equipment.

b) Load Growth:

Baras (Antipolo) 230 kV S/S, is being implemented to serve as new delivery substation through bus-in connection along the existing San Jose -Taytay 230 kV T/L. It is composed of 20 km 230 kV T/L, 12-230 kV PCB and associated equipment and 2-100 MVAR capacitor banks. The power transformers and 115 kV PCB and associated equipment, etc. (classified as connection assets) are for MERALCO’s implementation;

Luzon S/S Expansion Project 3, includes 230/69-13.8 kV power transformer for Batangas (2-300 MVA), Calaca (100 MVA) and Bay (100 MVA). Calaca transformer, however, is already repackaged under Calaca 230 kV Substation upgrading project; and

Luzon S/S Expansion Project 4, consist of 230/69-13.8 kV power transformer for Muntinlupa (300 MVA) and Daraga (100 MVA).


c) Power Quality and System Reliability: Luzon S/S Reliability Project 1, composed of S/S Expansions of 50 MVA, 230/69-13.8 kV

power transformer each at Botolan, Gumaca and Labo S/S; Luzon Voltage Improvement Project 1, includes 2-25 MVAR, 230 kV Shunt Reactor at

Naga S/S; Luzon Voltage Improvement Project 2, includes 2-100 MVAR, 230 kV Capacitor Bank each

at Dasmariñas and Biñan S/S; and Luzon PCB Replacement Project, includes PCB and associated equipment at Malaya

(3-230 kV PCB) and Gumaca (2-230 kV PCB).

6.5.2 Proposed Transmission Projects for 2016-2023 The following were considered in the system model used in the conduct of system study, which determines the transmission system requirement of South Luzon: a) Target commissioning of various power plants, both Conventional and the emerging Renewable

Energy from Wind and Geothermal; b) The need to meet the projected demand of various load centers and transmit the excess

generation towards the NCR and adjacent provinces, as well as to export power to the Visayas through the Leyte-Luzon HVDC Interconnection System;

c) The need to extend the existing 230 kV T/L and establish a new drawdown substation to provide a more efficient transmission service; and


improve system reliability. Shown in Table 6.4 is the list of transmission projects proposed for South Luzon in the period 2016-2023.


Table 6.4: Proposed Transmission Projects for South Luzon


Generation Entry

Pagbilao 500 kV Substation Quezon 2018


Calaca-Dasmariñas 230 kV T/L Batangas and Cavite 2018

Load Growth

Naga-Pili 69 kV T/L Upgrading Camarines Sur 2019

Malvar 230 kV Substation Batangas 2020

Lagonoy-Maligaya 69 kV T/L Camarines Sur


Eastern Albay 69 kV T/L Albay 2016

Calamba 230 kV Substation Laguna 2016

Calaca 230 kV Substation Upgrading Batangas 2018

Tiwi 230 kV Substation Albay 2018

Luzon Substation Expansion Project 6 Batangas and Camarines Sur 2018

Daraga-Ligao 69 kV T/L Upgrading Albay 2020

System Reliability

Bicol Region Substations Upgrading Camarines Sur and Albay 2019

Calabarzon Substations Upgrading Cavite, Laguna and Quezon 2019

Abuyog 230 kV Substation Sorsogon 2020

Power Quality

Luzon Voltage Improvement Project 4 Rizal, Laguna, Cavite, Albay, Sorsogon and Camarines Sur

2018

6.5.2.1 Pagbilao 500 kV Substation Existing Transmission System: The 764 MW Pagbilao and 511 MW QPPL CFPP in Quezon are connected to the Luzon Grid

through Tayabas Substation, while the 1,271 MW Ilijan NGPP is linked partly to Tayabas 500 kV Switchbays. Likewise, Tayabas Substation is also linked to Naga Substation in the Bicol Region through the 500 kV-designed transmission line (but initially energized at 230 kV).

Transmission Needs: To cater the programmed generation capacity additions, such as the 1,720 MW Atimonan LNG

Power Plant as well as the programmed generation expansion of QPPL and Pagbilao CFPP (with total 2,640 MW combined capacity) and the entry of 600 MW Energy World LNG, it would require a new 500 kV Substation in Pagbilao area. This is in lieu of expanding the existing Tayabas 500/230 kV Substation. This will also involve the energization to 500 kV of a segment of the Naga-Tayabas Transmission Line.

Major Project Components: Pagbilao 500 kV S/S: 3-750 MVA, 500/230 kV Power Transformer, 8-500 kV PCB and 8-230 kV

PCB and associated equipment; Tayabas 500 kV S/S Expansion: 4-230 kV PCB and associated equipment; Pagbilao–Tayabas 500 kV T/L, ST-DC, 4-795 MCM ACSR, 17 km; and Naga-Tayabas 230 kV T/L Extension: ST-DC, 4-795 MCM ACSR, 1 km.


6.5.2.2 Calaca-Dasmariñas 230 kV T/L Existing Transmission System: The existing Calaca Substation is the delivery point of the 600 MW

CFPP and an alternate delivery point of the 1,000 MW Sta. Rita and 500 MW San Lorenzo CCPP. The outgoing 230 kV double circuit line towards Dasmariñas Substation has “bus-in” connection, i.e., Amadeo Substation, while another 230 kV double circuit line towards Biñan Substation has “cut-in” connection in one of the circuits, i.e., Malamig Substation. These two double circuit 230 kV lines are directed towards bulk power delivery to Metro Manila area.

Transmission Needs: With the projected increase in demand in Luzon Grid, generation

capacity expansions are programmed in Batangas, as shown in Table 4.4a and Figure 4.4a in Chapter 4. The proposed Puting Bato and Batangas CFPP will be connected to the grid through Calaca Substation, while San Gabriel NGPP will be connected to the grid via the San Lorenzo CCPP Switchyard. These generation capacity additions will turn Calaca Substation into a merging point of about 2,470 MW. Based on the results of system study conducted, the existing outgoing 230 kV lines going to Dasmariñas and Biñan would not be enough to accommodate the full dispatch of 2,470 MW considering the single outage contingency criterion. Thus, the need to develop a new 230 kV transmission line from Calaca to Dasmariñas Substation. The resulting configuration would involve the direct delivery of power generation from Sta. Rita.

Major Project Components: Calaca-Dasmariñas 230 kV T/L, ST-DC, 4-795 MCM ACSR, 57 km; Dasmariñas S/S Expansion: 2-230 kV PCB and 2-230 kV Compact Air-Insulated Switchgear

(AIS) and associated equipment; and Sta. Rita Switchyard Expansion: 2-230 kV Compact Air-Insulated Switchgear and associated

equipment.

6.5.2.3 Naga-Pili 69 kV Transmission Line Upgrading

Existing Transmission System: The Naga-Pili 69 kV Line is a double circuit facility serving the whole franchise area of

CASURECO III, portion of CASURECO II and directly connected loads in the province of Camarines Sur.

One of the circuits further extends from Pili to the municipality of Lagonoy to serve the whole franchise area of CASURECO IV.


The other circuit of the line is also extended to the city of Ligao in Albay where the power from Daraga substation could alternatively supply fractional of the power requirements of CASURECO III in Iriga City.

With continues growth of connected loads along this 69 kV lines, overloading is expected particularly contingencies.

Transmission Needs: The upgrading of the Naga-Pili 69 kV line will support the development of the commercial and

industrial loads in the province of Camarines Sur. The upgrading of the line will also allow optimal utilization of the additional transformer capacity at Naga Substation and at the same time, it will allow better operational flexibility for the 69 kV loop going to Daraga Substation.

Project Components: Naga-Pili 69 kV T/L: 1-795 MCM ACSR/AS, SP-DC, 10.5 kms.

6.5.2.4 Malvar 230 kV Substation

Existing Transmission System: Major loads of Batangas Province are being served by Batangas and Bay 230/69 kV

Substations. The capacity of these substations upon implementation of the ongoing projects within the Third Regulatory Period will be 2-300 MVA and 2-100 MVA for Batangas Substation and 2-100 MVA for Bay Substation. However, to cater load growth in the long term, the space limitations at these existing substations would trigger the development of a new substation in another strategic location.

Transmission Needs: The Malvar 230 kV Substation will serve the incoming new industrial loads in Malvar and Lipa

City as well as the load growth of the existing customers in the area; This will relieve the loading of both Batangas and Bay Substation for future load growth and will

provide operational flexibility; and The Malvar 230 kV Substation is also in lieu of constructing more 69 kV lines from Batangas

Substation or upgrading of existing 69 kV lines.

Project Components: Extension from the bus-in point (Batangas side) to Malvar S/S: 230 kV, ST-DC, 4-795 MCM

ACSR/AS, 5.0 km; Extension from the bus-in point (Bay side) to Malvar S/S: 230 kV, ST-DC, 4-795 MCM

ACSR/AS, 5.0 km; and Malvar S/S (New): 1-100 MVA, 230/69-13.8 kV Power Transformer, 9-230 kV PCB and 9-69 kV

PCB and associated equipment.


6.5.2.5 Lagonoy-Maligaya 69 kV T/L Existing Transmission/Distribution System: The town of Caramoan in the province of Camarines Sur is currently

being served by CASURECO IV through a 13.2 kV line from the Lagonoy 5 MVA 69/13.2 kV Substation. The Lagonoy Substation of CASURECO IV sources its power from the NGCP’s Naga Substation through a 50-km Naga-Pili-Lagonoy 69 kV line. The anticipated load growth in the area can no longer be accommodated by the 13.2 kV distribution system of CASURECO IV. Furthermore, undervoltage frequently occurs in far-flung areas.

Transmission Needs: There is a need to extend the 69 kV line from Lagonoy to Maligaya in

the province of Camarines Sur to cater the increasing load. This project will also include the installation of 69 kV capacitor bank and shunt reactor at Lagonoy Load-end Substation to address the voltage quality issues in the area.

Project Components:

Lagonoy-Maligaya 69 kV T/L, CP-SC, 1-795 MCM, 45 km; and Lagonoy 69 kV S/S: 1-5 MVAR 69 kV Capacitor, 1-69 kV PCB, 69 kV ABS.

6.5.2.6 Eastern Albay 69 kV Transmission Line Existing Transmission and Distribution System: The 69 kV transmission system in Albay, which is linked to Daraga and Naga 230 kV

Substations and at Tiwi GPP 230 kV Switchyard are mostly located in the north, north eastern and middle portion of the province. However, most of the light to medium industries, regional government centers, learning institutions, resorts, among others are located in the eastern and southeastern parts of the province. The power consumers in these areas are being served through a load-end substation in Tabaco City via a very long 13.2 kV distribution line of Albay Electric Cooperative (ALECO). As such, low voltage frequently occurs during peak hours and the limited capacity of the said 13.2 kV distribution line could no longer accommodate additional loads.

Transmission Needs: Commercial entities that need a more reliable and quality

power include coconut oil mills, cordage manufacturers and Philippine Economic Zone Authority (PEZA)-registered Misibis Resort and Spa located in an ecotourism zone at Cagraray Island in Bacacay, Albay; and


A 69 kV transmission line with bigger capacity is needed to link the 69 kV line in Tabaco City to Daraga 230 kV Substation (via Sto. Domingo) forming a loop, thus provide single outage or N-1 contingency.

Major Project Components: Stage 1 Tabaco-Sto. Domingo 69 kV T/L, SP/CP – SC, 1-336.4 MCM ACSR, 18 km; Sto. Domingo Load-end S/S: 1-10 MVA, 69/13.8 kV Power Transformer, 2-69 kV PCB and

associated equipment; and Tabaco S/S Expansion: 2-69 kV Air Break Switch. Stage 2 Daraga–Sto. Domingo 69 kV T/L, ST/ SP–SC, 1-336.4 MCM ACSR, 20 km; Sto. Domingo Load-end S/S: 1-69 kV PCB and associated equipment; and Daraga S/S Expansion: 1-69 kV PCB and associated equipment. The issuance of PA by the ERC for this project has enabled NGCP to complete some of the pre-construction activities needed to implement the project. 6.5.2.7 Calamba 230 kV Substation Existing Transmission System: The Laguna Sector of MERALCO is presently being served by three 230/115 kV substations

namely: Biñan, Malamig (Sta. Rosa) and Calauan. The existing 115 kV distribution system served by these substations is in the looped configuration.

Transmission Needs: There is a need to develop a new drawdown substation strategically located near the industrial

parks in Laguna and Batangas and midway of Sta. Rosa and Calauan Substations to provide the long-term power requirement of the loads, provide higher level of transmission reliability and flexibility of operation. Thus, Calamba Substation is proposed via “bus-in” connection along the new Biñan-Bay (Makban) 230 kV line. This will also unload other adjacent 230 kV drawdown substations; and

There is also a need to address the single-outage contingency overloading of Malamig and Caluan Substations as well as the overloading in Caluan-Los Baños 115 kV distribution line; and

Major Project Components: Calamba 230 kV S/S: 2-300 MVA, 230/115-13.8 kV Power Transformers to be implemented by

MERALCO, 10-230 kV PCB and associated equipment; and 230 kV T/L, ST-DC, 4-795 MCM ACSR, 1.5 km.


6.5.2.8 Calaca 230 kV Substation Upgrading Existing Transmission System: The Calaca 230 kV Substation is an old substation shared by NGCP and the Calaca CFPP. It

has also old primary and secondary equipment in the substation.

Transmission Needs and Other Consideration: As the load of the said substation continues to grow, there is a need for additional transformer

capacity including ugrading/replacement of old primary and secondary equipment, etc.; and In order to ensure security and to set out clearly the asset boundary between NGCP and Calaca

CFPP, the Calaca 230 kV Substation requires the development of a new control building separate from the control facility of the power plant.

Major Project Components: Calaca 230 kV S/S: 1-100 MVA, 230/69 kV Power Transformer, 2-230 kV PCB, 1-69 kV PCB

and associated equipment, Secondary Equipment and New Control Building. 6.5.2.9 Tiwi 230 kV Substation Existing 69 kV Transmission System: The power consumers located in Tabaco City and municipalities of Tiwi, Malinao and Sto.

Domingo in the eastern coast of Albay are provided through a 69 kV line temporarily connected at the 25 MVA, 13.8/69 kV step-up transformer owned by Tiwi GPP. Power distributions are through Tabaco, Malinao Load-end Substations of ALECO and Alindeco-an agro industrial customer. The consumers in the said areas are experiencing low voltage whenever the source of power is transferred to Daraga 230 kV Substation due to an outage in the 69 kV transmission line or outage of the 25 MVA transformer at Tiwi GPP.

Transmission Needs and Other Considerations: To meet the projected load growth, there is a need for a bigger substation capacity where the 69

kV transmission lines could permanently connect. It will also complement the proposed Eastern Albay 69 kV Transmission Line Project; and

In order to ensure security and set out clearly the asset boundary, the proposed Tiwi 230 kV Substation requires the development of a new control facility separate from the control facility of the geothermal power plant.

Major Project Components: Tiwi 230 kV S/S: 1-50 MVA, 230/69-13.8 kV Power Transformer, 8-230 kV PCB, 2-69 kV PCB

and associated equipment, Secondary Equipment and New Control Building.


6.5.2.10 Luzon Substation Expansion 6 Existing Transmission System: The Batangas 230 kV Substation serves various customers under the MERALCO Franchise

areas. These customers include big industries, commercial establishments, subdivisions, among others. The Naga 230 kV Substation, on the other hand, serves the loads in the province of Camarines Sur in the Bicol Region.

Transmission Needs: To meet the projected increase in demand in the planning horizon, there is a need to increase

the substation capacity in each substation through the installation of power transformers. Naga Substation’s transformers are also old units with reliability issues already.

Major Project Components: Batangas S/S Expansion: 1-300 MVA, 230/69 kV Power Transformer, 2-230 kV PCB and

associated equipment; and Naga S/S Expansion: 1- 300 MVA, 230/69-13.8 kV Power Transformer 6.5.2.11 Daraga-Ligao 69 kV Transmission Line Upgrading Existing 69 kV Transmission System: The 23-km Daraga–Ligao 69 kV woodpole line serves Bicol Ice Plant, PhilHydro, Good Found

Cement and ALECO. In 2013, this 36-year old 69 kV line is already heavily loaded. Transmission Needs: The total projected loading of the directly-connected customers and ALECO being served

through this line is expected to exceed its thermal rating. Thus, the need to reinforce the existing line to accommodate load growth and at the same time ensure the reliability of supply to the customers; and

It can be noted that the decision on September 22, 2009 for ERC Case No. 2008-105 MC cited that the Tabaco-Ligao-Daraga 69 kV Line will be reclassified as Network/Transmission Assets upon the closing the Daraga-Tabaco-Ligao 69 kV loop due to the implementation of Eastern Albay 69 kV Line Project.

Major Project Components: Daraga-Ligao 69 kV T/L, 1-795 MCM ACSR, ST-SC, 22 km; Daraga S/S Expansion: 1-69 kV PCB and associated equipment; and Ligao Switching Station: 1-69 kV PCB and associated equipment.


6.5.2.12 Bicol Region Substations Upgrading Existing Transmission System: The continuous growth in demand in Bicol Region should be addressed by increasing the

substation capacities in the area. Aside from old transformers in Naga, reliable operation in Daraga Substation should be ensured during outage of one of the transformer units.

Transmission Needs: To meet the projected increase in demand within the planning horizon and maintain the N-1


Project Components: Naga 230 kV S/S: 1-200 MVA, 230/69 kV Power Transformer; and Daraga 230 kV S/S: 1-100 MVA, 230/69 kV Power Transformer. 6.5.2.13 Calabarzon Substations Upgrading Existing Transmission System: Substations in Cavite, Quezon and Laguna will need in order to address the load growth and

reliability issues in the area. In Dasmariñas, replacement of the burnt unit should be addressed while in Gumaca and Lumban additional units should be provided to prevent disruption of service in case of outages.


contingency provision, there is a need to increase the substation capacity in each substation through the installation of additional power transformers.

Project Components: Dasmariñas 230 kV S/S: 1-300 MVA, 230/115 kV Power Transformer; Gumaca 230 kV S/S: 1-100 MVA, 230/69 kV Power Transformer; and Lumban 230 kV S/S: 1-50 MVA, 230/69 kV Power Transformer.


6.5.2.14 Abuyog 230 kV Substation Existing 69 kV Transmission System: Sorsogon, the southernmost province in mainland Luzon, is linked to the grid through Daraga

Substation in the nearby province of Abay via the 36-year old 90-km 69 kV wood pole single circuit line. Power distribution are handled by Sorsogon I and II Electric Cooperatives (SORECO I and II). An outage of this 69 kV line results in power interruption in the entire province, which has already a total load of 14.43 MW in 2012; and

The Daraga 230 kV Substation has 3-50 MVA 230/69-13.8 kV kV power transformers that serve the consumers in the provinces of Albay and Sorsogon. With the continuous growth of demand in these provinces, the existing substation would require additional capacity. While the capacity expansion in Daraga 230 kV Substation would resolve the capacity issue, voltage problem is Sorsogon will still exist due to the long 69 kV line configuration.

Transmission Needs: There is a need to establish a 230 kV drawdown substation closer to the loads in Sorsogon to

address the reliability issues, meet the projected demand and address the power quality issues at the consumers.

Major Project Components: Abuyog (Sorsogon) 230 kV S/S: 2-50 MVA 230/69-13.8 kV Power Transformer, 6-230 kV PCB,

5-69 kV PCB and associated equipment; Bacman S/S Expansion: 4-230 kV PCB and associated equipment; and Bacman-Abuyog 230 kV T/L, 1-795 MCM ACSR, ST-DC, 25 km. 6.5.2.15 Luzon Voltage Improvement 4 Existing Transmission System: Various 230 kV substations in south Luzon: Antipolo, Biñan and Dasmariñas provide

transmission service to consumers under the MERALCO Franschise area. Likewise, there are 69 kV load-end substations, such as those in Ligao, Balogo and Tigaon that provides similar service to the consumers in Albay, Sorsogon and Camarines Sur.

Transmission Needs: The conduct of system study has identified these 230 kV substations, 69 kV load-end

substations that will experience low voltage during peak load and overvoltage problems during off peak condition in the coming years, as the power demand continue to increase; and

To maintain the 230 kV and 69 kV system voltages within the PGC-prescribed limits both during normal and N-1 contingency condition requires the installation of capacitor banks and shunt reactor at the identified substations in south Luzon.


Major Project Components: Ligao Switching Station: 3-5 MVAR, 69 kV Capacitor Banks; Balogo Switching Station: 3-5 MVAR, 69 kV Capacitor Banks; Tigaon Switching Station: 2-5 MVAR, 69 kV Capacitor Banks; Antipolo 230 kV S/S: 2-100 MVAR, 230 kV Capacitor Banks, 1-100 MVAR, 230 kV Shunt

Reactor; Biñan 230 kV S/S: 2-100 MVAR, 230 kV Capacitor Banks; and Dasmariñas 230 kV S/S: 2-100 MVAR, 230kV Capacitor Banks.

6.5.3 Overall Benefits After the Implementation of Proposed Transmission Projects for South

Luzon The completion of 500 kV Substation in Pagbilao, Quezon and the increased transfer capacity due to the completion of 230 kV transmission line linking Calaca to Dasmariñas Substations in 2018 ensures full dispatch of baseload power plants programmed in South Luzon. On the other hand, the completion of 230 kV drawdown substation each in Batangas, Laguna and Sorsogon provinces, the upgrading of existing substation each in Batangas (Calaca S/S) and Albay provinces would sustain the projected load growth and improve the system reliability in South Luzon in the next ten years. Furthermore, the completion of 69 kV lines will also accommodate the projected load growth in some areas, while extension of existing 69 kV system to form a loop or increase the transfer capacity improves the system reliability. The installation of capacitor banks and shunt reactor in the substations in the provinces of Sorsogon, Albay, Rizal, Laguna and Cavite ensure the power quality (improves voltage profile) in various areas in South Luzon.




CHAPTER 7: 2014-2023 Transmission Outlook for the Visayas

7.1 Introduction The ten-year projected demand was based on the total demand of five sub-grids in the Visayas: 1) Panay, 2) Cebu, 3) Bohol, 4) Leyte-Samar, and 5) Negros. The 783 MW peak demand in Cebu is about half of the entire 1,572 MW peak demand of the Visayas Grid, based on the 2013 actual peak demand. As discussed in Sub-section 3.3.3, the Visayas Grid consist of ± 350 kV HVDC (portion of Leyte-Luzon HVDC Interconnection System), 230 kV AC (Leyte-Cebu Interconnection System), 138 kV AC that includes Negros-Panay, Cebu-Negros and Leyte-Bohol Interconnection Systems and 69 kV AC transmission system in each sub-grid. Installed capacities based on the 2012 List of Existing Power Plants: Cebu (974.20 MW), Panay (497.50 MW), Negros (222.6 MW), Leyte-Samar (722.70 MW) and Bohol (30.9 MW). System simulations considered light loading scenario based on historical data at 60 % of the system peak demand of the Visayas Grid. Furthermore, the following dispatch conditions were also considered in the system simulations: a) Maximum Leyte Scenario: The geothermal generation facilities in Leyte are maximized, while

the generation facilities in Panay serve as regulating plants and the power plants in Cebu, Negros and Bohol are also maximized; and

b) Maximum Panay Scenario: The generation facilities in Panay are maximized, while the

geothermal generation facilities in Leyte serve as regulating reserve; the generation facilities in Cebu, Negros and Bohol are also maximized.

7.2 Existing and Programmed Generation Capacity The Programmed Generation Capacity from the 2012 PDP Updates for the Visayas is shown in Figure 4.4(b) and Table 4.4(b) in Chapter 4. These were further assessed on top of the existing dependable capacities and included in the system model. In the said list from the DOE, a total of 822 MW will come from Coal, which is a Conventional Power Plant, while the emerging RE-Based Power Plants could provide a total of 374.6 MW, with details shown in Table 7.1:


Table 7.1: Existing and Programmed Generation Capacity for the Visayas Grid

Power Plant Type/

Fuel Source/

RE Source

Existing Generation

Capacity

(MW)

Programmed Generation

Capacity for 2013-2020

(MW)


Coal 805.60 822

Diesel/Oil 670.40 -

Natural Gas 1.0 -

Sub-Total 1,477 822


Wind - 154

Geothermal 915.20 139

Biomass 44.30 19.6

Hydro 11.40 32

Solar - 30

Sub-Total 970.9 374.6

Other Technology

Battery - 40

Total 2,447.90 1,236.6

Table 7.1a: Existing and Programmed Generation Capacity in the Visayas Sub-Grids

Visayas Sub-Grids

Existing Installed

Capacity

(MW)

Additional Installed

Capacity for 2013-2020

(MW)

Cebu 974.20 405.6

Panay 497.50 556

Negros 222.60 196

Leyte – Samar 722.70 79

Bohol 30.90 0

Total 2,447.90 1,236.6

7.3 Ongoing Transmission Projects for the 3rd Regulatory Period Completed projects in the period 2011-2013 were included in the system model. Likewise, included in the system modelling are the target completion of other ongoing committed projects for 2014-2015 period in various stages of implementation, which are enumerated below with the corresponding project drivers:

a) Generation Entry: Calung-calung-Colon 138 kV T/L, 28 km includes PCB and associated equipment at

Calung-calung S/S (5-138 kV PCB) and Colon S/S (2-138kV PCB).

b) Congestion Alleviation: Colon-Cebu 138 kV T/L, 25 km includes PCB and associated equipment at Colon S/S

(4-138 kV PCB) and Cebu S/S (2-138kV PCB).


c) Load Growth: Southern Panay Backbone Transmission Project, composed of 95 km Sta. Barbara-

San Jose 138 kV T/L, and also includes the construction of San Jose S/S composed of 50 MVA, 138/69-13.8 kV, 2-138 kV PCB and 3-69 kV PCB and associated equipment. It includes also Sta. Barbara S/S Expansion through the installation of 2-138 kV PCB and associated equipment;

Visayas S/S Expansion, composed of 138/69-13.8 kV power transformers: Ormoc (100 MVA), Calung-calung (50 MVA) and Kabankalan (50 MVA);

Bohol Backbone Transmission Project, composed of 95 km Ubay-Corella 138 kV T/L which also includes the construction of Corella S/S composed of 100 MVA, 138/69-13.8 kV, 1-138 kV PCB and 3-69 kV PCB and associated equipment as well as the Ubay S/S Expansion (2-138 kV PCB and associated equipment); and

Negros V T/L Project, includes 58 km San Carlos-Guihulngan 69 kV T/L, which is intended to form a 69 kV transmission loop from Cadiz to Amlan. The implementation of this project was deferred due to high ROW acquisition cost that increased to more than three times the initial estimates. To lower the cost of acquiring ROW, most of the segments will be re-routed along the mountains, hence the need to file before the ERC for approval due to the change in project components and implementation period.

i) Transmission Line: San Carlos LES – Guihulngan: 69 kV, ST/SP-SC, 1-336.4 MCM ACSR, 58 km.

ii) Substations: San Carlos LES Termination Point, 3 – 69 kV Air Break Switch; and Guihulngan LES Terminating Point, 3 – 69 kV Air Break Switch

d) Power Quality and System Reliability:

Visayas S/S Reliability Project 1, composed of 138/69-13.8 kV power transformers for Amlan (50 MVA), Bacolod (100 MVA), Cadiz (50 MVA), Babatngon (50 MVA), Maasin (50 MVA) and Samboan (50 MVA) and 150 MVA, 230/138 kV power transformer for Ormoc S/S;

Visayas S/S Reliability Project 2, composed of 138/69-13.8 kV power transformers for Mandaue (100 MVA), Lapu-lapu (100 MVA), Ormoc (100 MVA), Sta. Barbara (2-50 MVA), Babatngon (50 MVA) and Sta. Rita (50 MVA from Ormoc S/S);

Ormoc-Babatngon 138 kV T/L, 78.54 km and includes S/S Expansions composed of 1-138 kV PCB and associated equipment each at Ormoc and Babatngon S/S;

Ormoc-Maasin 138 kV T/L, 113.97 km of 2nd circuit stringing and includes PCB and associated equipment for Ormoc (1-138 kV PCB) and Maasin (3-138 kV PCB);

Culasi-San Jose 69 kV T/L, 86 km and includes S/S expansion at San Jose (2-69 kV PCB and associated equipment) and a 69 kV Air Break Switch (ABS) at Culasi Load-end S/S;

Sta. Rita-Quinapundan 69 kV T/L, 97 km and includes 2-69 kV PCB and associated equipment at Sta. Rita S/S and 2-69 kV ABS at Quinapundan Load-end S/S; and


Cebu-Lapu-lapu T/L, originally involves the construction of the 3rd circuit of 138 kV line from Cebu via Mandaue to Lapulapu, however, the adoption of a long-term strategic development of the proposed CNP 230 kV Backbone necessitates the change in project components. As such, the overhead line portion will be designed at 230 kV (initially energized at 138 kV) considering the growth in demand in Cebu and the difficulty in acquiring ROW for future transmission facilities. Due to the revised project components, and new implementation scheme/timeline, the project was filed before the ERC for approval.

i) Overhead Transmission Line: Cebu S/S – Umapad CTS: 230 kV, ST/SP-DC, 2-795 MCM ACSR, 9 km

(initially energized at 138 kV) ii) Underground and Submarine Cable:

Umapad CTS – Mandaue Cable Joint (CJ): 138 kV, SC, three single-core 1,000 mm2 XLPE underground cable, 0.3 km;

Mandaue CJ – Lapulapu CJ: 138 kV, SC, two bundle of three-core 500 mm2 XLPE submarine cable, 0.5 km; and

Lapulapu CJ – Lapulapu S/S: 138 kV, SC, three single-core 1,000 mm2 XLPE underground cable, 0.1 km.

7.4 Transmission Project for Accelerated Implementation 7.4.1 Panay – Guimaras 138 kV Interconnection Existing Distribution System: The island province of Guimaras’ power system is currently

connected to Panay Sub-Grid via the Guimaras Electric Cooperative’s (GUIMELCO) 13.2 kV submarine cable with 5 MW maximum transfer capacity.

Transmission Needs: A wind farm, with an installed capacity of 54 MW will be developed

in San Lorenzo, Guimaras Island by Trans-Asia Renewable Energy Corporation (TAREC); and With an aggregate actual peak demand in Guimaras Island of only 5 MW in 2012, the 50 MW

wind farm requires a transmission system (with submarine cable portion) with bigger capacity and higher voltage to minimize transmission loss and ensure full dispatch of generated power to the Visayas Grid.

Major Project Components: PEDC-Panay CTS 138 kV T/L, ST-DC, 1-795 MCM ACSR, 2 km; Panay CTS-Guimaras 138 kV Submarine Cable, 400 mm2 3-core

XLPE, 3 km; PEDC S/S Expansion, 4-138 kV PCB and associated equipment; Panay CTS Expansion, 4-138 kV PCB and associated

equipment; and Guimaras S/S Expansion, 2-138 kV PCB and associated

equipment.


The project (initially energized at 69 kV pending the decision on the acquisition of PEDC Assets) is targeted for completion in 2014, which is still within the 3rd Regulatory Period, and is being implemented ahead by TAREC. As a transmission asset, the reimbursement for this project will be included by NGCP in its 4th Regulatory reset application. 7.5 Proposed Transmission Projects for 2016-2023 The following were considered in the system model used in the conduct of system study, which determines the transmission system requirement in the Visayas:

a) Target commissioning of various power plants, both Conventional and the emerging RE-Based Power Plants: Wind Farms, Biomass, Geothermal and Hydro;

b) The need to meet the projected demand of various load centers in each sub-grid; c) The need to establish a 230 kV (initially energized at 138 kV) backbone transmission system

linking Negros, Panay and Cebu Islands to ensure full dispatch of power generation, address congestions between these islands, thus provide a more efficient transmission service to the consumers; and

d) The need to maintain compliance with the PGC-prescribed power quality standards, improve

system reliability and comply with the statutory requirement to NGCP as the transmission service provider.

Shown in Table 7.2 is the list of transmission projects planned for the Visayas in the period 2016-2023 with the corresponding project drivers.


Table 7.2: Proposed Transmission Projects for the Visayas

7.5.1 Cebu – Negros – Panay 230 kV Backbone

(Stage 2: Bato – Cebu 230 kV Transmission Line) Existing Transmission System: The power generated from the existing 246 MW CEDC CFPP in the

vicinity of Toledo City is being transmitted to Metro Cebu via the Calung-calung-Toledo-Colon 138 kV transmission system, which has a maximum transfer capacity of 540 MW; and

The long radial configuration of the transmission backbone connecting Cebu, Negros and Panay Islands has limited interconnection capacity, hence could no longer address the supply-demand imbalance in these islands.

PROJECT NAME / DRIVERS PROVINCE ETC

GENERATION ENTRY

Cebu – Negros – Panay 230 kV Backbone (Stage 2) Cebu 2017

GENERATION ENTRY and SYSTEM RELIABILITY

Eastern Panay 138 kV Backbone Iloilo 2016

Cebu – Negros – Panay 230 kV Backbone (Stage 1) Iloilo and Negros Occidental 2016

E.B. Magalona – Cadiz 138 kV T/L Negros Occidental 2020

LOAD GROWTH

SRP 138 kV Substation Cebu 2018

LOAD GROWTH and SYSTEM RELIABILITY

Nabas – Caticlan 138 kV T/L Antique and Aklan 2018

Amlan – Dumaguete 138 kV T/L Negros Oriental 2018

Babatngon – Campetic 138 kV T/L Leyte 2018

Panay Substations Upgrading Project Iloilo, Antique & Capiz 2018

Cebu Substation Upgrading Project Cebu 2019

Leyte – Bohol Line 2 Southern Leyte and Bohol 2022

SYSTEM RELIABILITY

Kabankalan S/S Reliability Improvement Negros Occidental 2018

Leyte Substation Upgrading Project Leyte, Southern Leyte 2018

Naga 138 kV Substation Upgrading Cebu 2018

Negros Substations Upgrading Project Negros Occidental, Negros Oriental 2019

Babatngon – Sta. Rita 138 kV T/L Upgrading Leyte and Samar 2019

Samar Substation Upgrading Project Samar 2019

Bohol Substations Upgrading Project Bohol 2020

Calbayog – Allen 69 kV Line Samar and Northern Samar 2020

Cebu-Bohol 138 kV Interconnection Project Cebu and Bohol -

SYSTEM RELIABILITY and POWER QUALITY

Visayas Voltage Improvement 1 Northern Samar, Leyte, Southern Leyte, Bohol and Aklan

2018

Maasin – Javier 138 kV T/L Southern Leyte 2019

SYSTEM RELIABILITY and STATUTORY

Tagbilaran 69 kV Substation Bohol 2020

STATUTORY and GENERATION ENTRY

Bacolod - San Enrique 69 kV T/L Reclassification Negros Occidental -

Cadiz – San Carlos 69 kV T/L Reclassification Negros Occidental -


Transmission Needs: The programmed generation capacity of 300 MW targeted for commissioning in 2017 by the

Therma Visayas, Inc. in the vicinity of Toledo City requires a double circuit transmission system with bigger capacity than the existing 138 kV transmission system. This will ensure full dispatch of power generated from the proposed CFPP to the load centers in Metro Cebu and the rest of the Visayas Grid.

Major Project Components: Bato Switching Station, 7-230 kV PCB and associated equipment; Bato – Cebu 230 kV T/L, ST-DC, 4 -795 MCM ACSR, 45 km; and Cebu S/S Expansion, 2-300 MVA 230/138 kV Power Transformers, 8-138 kV PCB (GIS) and

1-138 kV PCB and associated equipment.

Fig. 7.1: Cebu – Negros – Panay 230 kV Backbone Project

7.5.2 Eastern Panay 138 kV Backbone Existing Transmission System: The customers in eastern part of Panay Island draws their power from Panit-an Substation via a

single circuit Panit-an-Balasan 69 kV transmission line, which is a radial line and without N-1 contingency.

Transmission Needs: Palm Concepcion Power Corporation (PCPC) is developing a 2x135 MW CFPP in Concepcion,

Iloilo that is targeted for commissioning in 2016. Connecting this CFPP sited in eastern part of


Panay Island to the Visayas Grid requires the construction of a double circuit 138 kV line to Barotac Viejo Substation, which is the nearest 138 kV transmission facility. Furthermore, a substation/switchyard within the PCPC CFPP complex could provide both the station service as well as alternative source of power supply to customers presently served through the single circuit Panit-an-Balasan 69 kV line.

Major Project Components: Barotac Viejo-Concepcion 138 kV T/L, ST-DC,

2-795 MCM ACSR, 42 km; Sara-Concepcion 69 kV T/L, SP-SC, 1-336.4 MCM ACSR, 14.2 km; Concepcion 138 kV S/S, 1-50 MVA 138/69-13.8 kV Power Transformer, 8-138 kV PCB (GIS),

3-69 kV PCB (GIS) and associated equipment; and Barotac Viejo S/S Expansion, 4-138 kV PCB and associated equipment. 7.5.3 Cebu – Negros – Panay 230 kV Backbone (Stage 1: Negros – Panay Interconnection Upgrading Project) Existing Transmission System: The transfer capacity of the existing Negros-Panay 138 kV

Interconnection system is limited to 85 MW only.

Transmission Needs: In the period 2013-2016, the aggregate installed capacity of the

programmed generation capacity addition within Panay Island is already 556 MW, as shown in Table 7.1a. With an actual peak demand of only 258.6 MW in 2012 and is projected to grow at an AACGR of 5.52% in the next 10 years, there is a need to establish a bigger capacity transmission system at higher voltage to ensure full dispatch of the programmed generation capacity addition.

Major Project Components: Bacolod S/S - E. B. Magalona CTS, 230 kV (initially energized at 138 kV) T/L, ST-DC, 2-795

MCM ACSR, 42 km; Barotac Viejo S/S - E. B. Magalona CTS, 230 kV (but will be initially energized at 138 kV) T/L,

Single Circuit, 3-1,600 mm2 XLPE submarine cable, 22.75 km; Bacolod S/S Expansion, 2-138 kV PCB and associated equipment; E. B. Magalona CTS Expansion, associated submarine cable termination equipment; and Barotac Viejo S/S Expansion, 6-138 kV PCB and associated equipment, 1-40 MVAR, 138 kV

shunt reactor, associated submarine cable termination equipment.


7.5.4 EB Magalona – Cadiz 138 kV Transmission Line Existing Transmission System: Cadiz City is under the VMC Rural Electric Service Cooperative (VRESCO) franchise area and its

power requirement is being served through Cadiz Substation connected to a single circuit 138 kV line to Bacolod Substation; and

Any outage in the 138 kV Bacolod-Cadiz line would mean loss of power supply within the VRESCO franchise area.

Transmission Needs: A 138 kV line needs to be constructed from E.B. Magalona

CTS to Cadiz Substation effectively forming a 138 kV loop to improve the system reliability.

Major Project Components: EB Magalona-Cadiz 138 kV T/L, 138 kV ST-SC, 1-795 MCM

ACSR, 40 km; EB Magalona CTS Expansion, 2-138 kV PCB and associated

equipment; and Cadiz 138 kV S/S Expansion, 2-138 kV PCB and associated

equipment.

7.5.5 SRP 230 kV Substation Existing Transmission System: A major infrastructure development within the South Road Properties (SRP) is projected to

further increase the existing power requirement. However, Quiot 138 kV Substation, which is the nearest drawdown substation for the SRP area has no more adequate area for expansion to accommodate the installation of additional equipment that could provide a reliable power delivery system.

Transmission Needs: A new drawdown substation is needed to provide an alternative connection point to prospective

power customers that will locate within the SRP as well as other customers in Metro Cebu. Major Project Components: SRP 230 kV S/S, 2-300 MVA 230/69-13.8 kV Power Transformers, 7-230 kV PCB and 5-69 kV

PCB and associated equipment; and SRP S/S cut-in to the proposed Bato-Cebu 230 kV Line 1, ST/SP-DC, 2-410 mm2 TACSR/4-795

MCM ACSR, 22 km.


7.5.6 Nabas – Caticlan 138 kV Transmission Line Existing Transmission System: The town of Caticlan and Boracay Island are under the franchise

area of Aklan Electric Cooperative (AKELCO) and the respective load-end substations are connected to Nabas Substation via a relatively long 69 kV line; and

In 2012, the combined load of Caticlan and Boracay Island has already reached 21 MW and with an AACGR (2010-2012) of 13.88%, the 45 MW maximum capacity of the existing 69 kV line could already be overloaded in 2015 due to the entry of new loads. Moreover, low voltage also occurs in Caticlan and Boracay Island due to the long 69 kV line and the continuing growth in demand.

Transmission Needs: A transmission system with bigger transfer capacity composed of 138 kV line from Nabas

Substation to a proposed Caticlan Substation needs to be implemented primarily to address the projected load growth and at the same time improve the power quality by minimizing transmission loss.

Major Project Components: Nabas-Caticlan 138 kV T/L, ST-DC1, 1-795 MCM ACSR, 22 km.; Caticlan 138 kV S/S: 2-50 MVA, 138/69-13.8 kV Power Transformers, 5-138 kV PCB and

4-69 kV PCB and associated equipment; and Nabas S/S Expansion: 1-138 kV and associated equipment. 7.5.7 Amlan-Dumaguete 138 kV Transmission Line Existing Transmission System:

The power requirement of Dumaguete City and vicinity is being served through the Amlan-Siaton 69 kV line, however, the limited transfer capacity of 40 MW is projected to be overloaded in the coming years.

Transmission Needs: To address the projected load growth and improve the system

reliability in Dumaguete City and vicinity, there is a need to implement another transmission line with bigger capacity and at higher voltage; and

The proposed new line will also allow Negros Oriental Electric Cooperative II (NORECO II) to source its power from the proposed Dumaguete Substation, thereby unloading Amlan Substation and the Amlan-Siaton 69 kV line. The proposed


implementation scheme will also minimize transmission loss and improve the power quality to the customers served by the 69 kV line.

Major Project Components: Amlan-Dumaguete 138 kV T/L, ST-DC, 1-795 MCM ACSR, 2 km; Dumaguete 138 kV S/S, 1-50 MVA, 138/69-13.8 kV Power Transformers PCB and 3-69 kV PCB

and associated equipment; and Amlan S/S Expansion, 2-138 kV PCB and associated equipment. 7.5.8 Babatngon-Campetic 138 kV Transmission Line Existing Transmission System: Leyte Electric Cooperative II (LEYECO II) is being served

through Babatngon Substation via a single circuit 69 kV transmission line. Due to the increasing demand in the LEYECO II’s franchise area, it is no longer technically feasible to shift the loads from Babatngon to Maasin Substation during N-1 event. Similarly, these loads cannot be shifted from Babatngon to Ormoc Substation for the same reason.

Transmission Needs: To meet the projected demand and provide an alternate

source of power, a new line with bigger transfer capacity and at higher voltage needs to be implemented; and

There is also a need to establish a 138 kV drawdown substation in the vicinity of Campetic to serve Don Orestes Romualdez Electric Cooperative, Inc. (DORELCO) and LEYECO II and provide alternate power supply source (during N-1 event) to the loads in Sagkahan and Abucay, which are under the franchise areas of LEYECO III and V and Biliran Electric Cooperative (BILECO).

Major Project Components: Babatngon-Campetic 138 kV T/L, ST-DC, 1-795 MCM ACSR, 20 km; Campetic 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer and 4-138 kV PCB and

associated equipment; Sagkahan-Campetic 69 kV T/L, ST-DC, 1-336.4 MCM, 1 km; and Campetic-Campetic 69 kV T/L, ST-DC, 1-336.4 MCM, 1 km.


7.5.9 Panay Substations Upgrading Existing Transmission System: Dingle Substation in Iloilo has only one 50 MVA transformer, the same with the ongoing San

Jose Substation that is being implemented under the Southern Panay Backbone Project. On the other hand, Panit-an Substation in Capiz that has a 50 MVA and 2-30 MVA transformers could no longer accommodate the projected demand in the next 10 years.

Transmission Needs: To comply with N-1 contingency criterion of the PGC, an additional 50 MVA transformer needs to

be installed at both Dingle and San Jose Substations; and Considering the 10-year projected demand of the distribution utilities and electric cooperatives

being served by Panit-an Substation, the existing 2-30 MVA, 138/69-13.8 kV transformer needs to be upgraded to 2-50 MVA to increase the substation capacity and improve the reliability up to the substation level.

Major Project Components: Dingle 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 1-69 kV PCB

and associated equipment; San Jose 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 1-69 kV

PCB and associated equipment; and Panit-an 138 kV S/S: 2-50 MVA 138/69-13.8 kV Power Transformer, 4-138 kV PCB, 2-69 kV

PCB and associated equipment. 7.5.10 Cebu Substations Upgrading Existing Transmission System: The Naga S/S has 2-50 MVA transformer; The Colon S/S has 1-50 MVA transformer. While two 50 MVA was approved by the ERC in the

3RP to be installed at Colon, only one 50 MVA was implememented. Additional 50 MVA transformer will be installed in the future;

The Daanbantayan S/S have only one transformer rated 20 MVA; and The Calung-calung S/S has one 30 MVA transformer and an additional 50 MVA will be installed

under VSEP-1. Transmission Needs: To accommodate the projected demand and avoid overloading of the transformer, there is a

need to upgrade the transformation capacity of Naga, Colon, Calung-calung and Daanbantayan Substations.

Major Project Components: Naga 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer (transferred from Naga S/S),

2-138 kV PCB, 2-69 kV PCB and associated equipment;


Colon 138 kV S/S: 2-100 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 2-69 kV PCB and associated equipment;

Calung-calung 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer (to replace the 30 MVA transformer), 2-138 kV PCB, 2-69 kV PCB and associated equipment; and

Daanbantayan 230 kV S/S: 1-50 MVA 230/69-13.8 kV Power Transformer, 2-230 kV PCB, 2-69 kV PCB and associated equipment.

7.5.11 Leyte-Bohol Line 2 Existing Transmission System: Bohol Island is connected to the Visayas Grid through Leyte Island via a combination of 138 kV

overhead line and 17.6 km submarine cable with a maximum capacity of 90 MW. Transmission Needs: Based on the 2013-2022 demand forecast, the Leyte-Bohol submarine

cable will be overloaded by 2019, as such the transmission system requires the construction of a 2nd circuit 138 kV submarine cable and the corresponding 138 kV overhead line to increase the existing maximum transfer capacity and improve the system reliability to Bohol Island.

Major Project Components: Leyte-Bohol 138 kV submarine cable, 1-300 mm2, 17.6 km; Maasin-Guadalupe 138 kV T/L, ST-SC, 1-795 MCM ACSR, 4.94 km;

and CP Garcia-Ubay 138 kV T/L, ST-SC, 1-795 MCM ACSR,19 km 7.5.12 Kabankalan Substation Reliability Improvement Existing Transmission System: The existing one-and-a-half breaker scheme configuration at Kabankalan Substation shows that

both 138 kV lines going to Bacolod and Mabinay Substation are connected in different switchbays; and

Double-bus outage of the 138 kV system in Kabankalan S/S, will result in the isolation of Bacolod, Cadiz, and Panay Island from the rest of the Visayas Grid.

Transmission Needs: To improve the system reliability of the 138 kV lines to Bacolod and Mabinay Substations and

prevent partial blackout during double-bus outage in Kabankalan S/S, the Kabankalan-Bacolod and Kabankalan-Mabinay 138 kV lines should be connected in the same switchbay; and

The proposed connection scheme will ensure continuity of supply in Northern Negros and Panay during the simultaneous outage of the two 138 kV buses at Kabankalan Substation.


Figure 7.2 – Kabankalan Substation Reliability Improvement

7.5.13 Leyte Substations Upgrading Existing Transmission System: Isabel S/S has only one transformer rated 30 MVA; Maasin S/S has one 30 MVA transformer and an additional 50 MVA will be installed under

VSRP-1; and Tabango S/S has 1-10 MVA transformer. Transmission Needs: To provide N-1 contingency at the substation level, there is a need to install a 2nd transformer

unit at Isabel S/S; and To accommodate the projected demand and avoid overloading of the transformer, there is a

need to upgrade the transformation capacity of Maasin S/S and Tabango S/S. Major Project Components: Isabel 138 kV S/S: 1-30 MVA 138/69-13.8 kV Power Transformer (from Maasin S/S),

2-138 kV PCB, 1-69 kV PCB and associated equipment; Maasin 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 1-69 kV PCB

and associated equipment; and Tabango 230 kV S/S: 1-50 MVA 230/69-13.8 kV Power Transformer, 2-230 kV PCB, 1-69 kV

PCB and associated equipment.


7.5.14 Naga 138 kV Substations Upgrading Existing Transmission System: The Naga Substation in Cebu receives about 185 MW of aggregate dependable capacity from

Gas Turbines, Coal-Fired and Diesel Thermal Power Plants and also serves several power customers. This substation facility was already 36 years old, having been energized in 1977; and

At present, all major equipment including power transformers and power circuit breakers are already old, thus already difficult to maintain due to the dearth of spare parts in the market while some are closely being monitored for indication of operational malfunctions.

Transmission Needs: The Naga Substation needs to be upgraded to prevent any operational breakdown of old

equipment; and The installation of new equipment will maintain/improve the system reliability, thus prevent any

unserved energy to the customers in case of equipment breakdown at the substation. Major Project Components: Supply and installation of 2-100 MVA, 138/69-13.8 kV Power Transformers, 18-138 kV PCB and

9-69 kV PCB including associated equipment; and Includes dismantling and gradual replacement of existing equipment. 7.5.15 Negros Substations Upgrading Existing Transmission System: The Mabinay S/S has one 30 MVA transformer only; The Kabankalan S/S has two transformers rated 30 MVA and 50 MVA; and E. B. Magalona Cable Terminal Station serves only as connection point between submarine

cable from Barotac Viejo S/S in Panay and overhead transmission line to Bacolod S/S. Transmission Needs: Kabankalan and Mabinay Substations need upgrading to provide N-1 capability and increase

reliability at the substation level; and Considering the 10-year projected demand of the distribution utilities and electric cooperatives

being served by Bacolod substation, it would be necessary to provide another drawdown substation in the area of E.B. Magalona to improve system reliability.

Major Project Components: Kabankalan 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 1-69 kV

PCB and associated equipment; Mabinay 138 kV S/S: 1-30 MVA 138/69-13.8 kV Power Transformer (transferred from Sta.

Barbara S/S), 2-138 kV PCB, 1-69 kV PCB and associated equipment; and E.B. Magalona 138 kV S/S: 2-30 MVA, 138/69-13.8 kV Power Transformer (transferred from

Panitan S/S), 4-138 kV PCB, 2-69 kV PCB and associated equipment.


7.5.16 Babatngon – Sta. Rita 138 kV Line Upgrading Existing Transmission System: The portion of the existing Babatngon-Paranas 138 kV line

that crosses the San Juanico Strait has a limited capacity of only 90 MW (1-336.4 MCM conductor).

The 50 MVA, 138/69-13.8 kV Power Transformer at Sta. Rita is tapped to one 138 kV circuit of Babatngon-Paranas 138 kV line, which serves the consumers of Samar Electric Cooperative (SAMELCO). This connection scheme affects the overall system reliability of the Leyte-Samar 138 kV transmission system; and

NGCP co-locates its substation facilities with SAMELCO, which owns the lot.

Transmission Needs and Other Consideration: There is a need to increase the transmission capacity of

the Babatngon-Paranas 138 kV line to 2-180 MW by removing the transmission constraint of the San Juanico Strait portion of the said 138 kV line;

Utilize the Babatngon-Sta. Rita 138 kV line with lower capacity by energizing it at 69 kV which still would be sufficient to serve even the projected load growth, but it could improve system reliability by eliminating the 138 kV tap connection; and

Transfer the NGCP substation facilities at Sta. Rita to Babatngon Substation for more efficient O & M.

Major Project Components: Babatngon-Wright 138 kV T/L (portion along San Juanico Strait), 138 kV T/L, ST-DC, 2-795

MCM ACSR, 1.8 km; and Babatngon-Sta. Rita 69 kV T/L, 1-336.4 MCM ACSR, 11.6 km, 1-69 kV PCB and associated

equipment (installation and hauling from Sta. Rita). 7.5.17 Samar Substations Upgrading Project Existing Transmission System: Paranas S/S and Carayman S/S both have one 50 MVA transformer only. Transmission Needs: Wright and Calbayog Substations require upgrading to provide N-1 capability, thus improve the

reliability at the substation level.


Major Project Components: Wright 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 3-69 kV PCB

and associated equipment; and Calbayog 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 2-69 kV

PCB and associated equipment. 7.5.18 Bohol Substations Upgrading Existing Transmission System: Both Ubay and Corella Substations in Bohol have 1-100 MVA transformer each. These

substations are linked by a single circuit 138 kV Bohol Backbone to the Leyte Sub-Grid via the Leyte-Bohol Interconnection System that includes about 18 km of 138 kV submarine cables.

Transmission Needs: In 2019, the peak demand in Bohol Island is projected to increase to about 92 MW, hence

outage at Ubay or Corella Substation will result in overloading of the remaining substation. To accommodate the projected demand and preclude any overloading at the remaining 138 kV substation in Bohol island, there is a need to install additional transformer.

Major Project Components: Ubay 138 kV S/S, 1-100 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 1-69 kV PCB

and associated equipment; and Corella 138 kV S/S, 1-100 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB, 1-69 kV

PCB and associated equipment. 7.5.19 Calbayog – Allen 69 kV Transmission Line Existing Transmission System: The existing 69 kV Calbayog-Allen 69 kV line serves

SAMELCO I (through San Agustin, Capoocan and Palanas-Cara Load-end S/S) and NORSAMELCO (through Dalakit, Bobolosan and Allen Load-end S/S); and

Any outage along the 110.58 km Calbayog-Allen single circuit 69 kV line results in power interruption in several towns under the SAMELCO I and Northern Samar Electric Cooperative (NORSAMELCO) franchise areas.


Transmission Needs: There is a need to construct a 78 km 2nd 69 kV line from Calbayog to Allen to effectively form a

loop and provide single outage contingency (N-1), thus improve the system reliability in Northern Samar.

Project Components: Calbayog-Allen 69 kV T/L, SP-SC 1-336.4 MCM ACSR, 78 km; and Calbayog S/S Expansion, 1-69 kV PCB and associated equipment. 7.5.20 Cebu-Bohol 138 kV Interconnection Project Existing Transmission System: The Bohol Grid is composed of two major 138 kV

Substation that is linked by a single circuit overhead transmission line;

It draws its power from the Visayas Grid via a radially connected single circuit Leyte-Bohol Transmission Corridor, which is composed of overhead lines from Ormoc S/S to Maasin S/S and a submarine cable system from Maasin S/S to Ubay S/S;

A second circuit of overhead lines will be installed from Ormoc S/S to Maasin S/S by 2014 to provide N-1 contingency along the Ormoc-Maasin 138 kV Transmission Corridor. Likewise, a second circuit of the Leyte-Bohol 138 kV Submarine Cable Interconnection is proposed to be installed by 2018 to address the power demand growth in Bohol; and

Local power generation with a cumulative dependable capacity of 25 MW is provided by several hydroelectric power plants and a diesel power plant.

Transmission Needs: During the outage the Leyte-Bohol 138 kV Interconnection, which may be caused by calamities

such as supertyphoons, power delivery towards the entire Bohol Island will be interrupted. Since the existing power plants in Bohol do not have sufficient generation capacity to cater the power demand in the island during N-1 condition, there is a need to establish an alternative transmission corridor towards Bohol;

Similarly, in order to improve the reliability of power delivery towards the Leyte Island, particularly during contingency events, new transmission facilities that will serve as an alternative transmission corridor to the existing Leyte-Cebu 230 kV Submarine Interconnection is proposed.


Project Components: New 138 kV switching stations and cable terminal stations at Sibonga, Cebu and in Loon, Bohol; 138 kV Submarine Cable from Sibonga, Cebu to Loon, Bohol; and A 138 kV overhead transmission line from Loon towards Corella S/S and Ubay S/S.

7.5.21 Visayas Voltage Improvement 1 Existing Transmission System: Low voltage problem is projected in some areas like Northern Samar, eastern part of Leyte and

Southern Leyte due to long 69 kV transmission lines serving the area and in the northwesternmost part of Panay and western part of Bohol due to load growth;

The network analyses conducted have identified a 138 kV substation and several 69 kV load-end substations that will experience low voltage problems: Corella, Catarman, Bobolosan, Tolosa, Caticlan and Himayangan.

Transmission Needs: Maintaining the system voltages within the PGC-prescribed limits both during normal and N-1

contingency condition requires the installation of capacitor banks at the identified load-ends/substation in Visayas.

Major Project Components: Corella 138 kV S/S: 3-7.5 MVAR, 138 kV Capacitor Banks; Catarman LES: 1-7.5 MVAR, 69 kV Capacitor Bank; Bobolosan LES: 1-5 MVAR, 69 kV Capacitor Bank; Tolosa LES: 1-5 MVAR, 69 kV Capacitor Bank; Caticlan LES: 4-5 MVAR, 69 kV Capacitor Banks; and Himayangan LES: 1-5 MVAR, 69 kV Capacitor Bank; 7.5.22 Maasin – Javier 138 kV Transmission Line Existing Transmission System: The customers under the franchise area of Southern Leyte

Electric Cooperative (SOLECO) draws power from Maasin Substation, however, during N-1 event when the loads are shifted to Ormoc Substation, low voltage occurs at the customers served through this 69 kV line.

Transmission Needs: To address the low voltage and improve reliability, the system

needs another transmission line with bigger transfer capacity, at higher voltage and a new drawdown substation in the vicinity of Javier. This proposed Javier Substation could serve the


entire SOLECO customers and DORELCO and LEYECO II Load-end Substations may also be shifted to this proposed substation during N-1 event.

Major Project Components: Maasin-Javier 138 kV T/L, ST-DC, 1-795 MCM ACSR, 105 km; and Javier 138 kV S/S: 2-50 MVA 138/69-13.8 kV Power Transformer, 7-138 kV PCB and associated

equipment. 7.5.23 Tagbilaran 69 kV Substation Existing Transmission System: The Bohol Enterprise Inc. (BEI) and Sta. Clara Hydro are currently connected to the 69 kV

Tagbilaran Substation of NGCP via BDPP Switchyard’s10 MVA transformer; and Any outage/maintenance at the Bohol Diesel Power Plant (BDPP) Switchyard’s 10 MVA

transformer will result in power interruption to BEI and undelivered power supply from Sta. Clara Hydro.

Transmission Needs: Another 10 MVA transformer within Tagbilaran 69 kV Substation could directly serve BEI and

could provide a more reliable power delivery system for Sta. Clara Hydro; and With the 10 MVA transformer in place, any outage or maintenance works in the BDPP

Switchyard facilities will no longer affect these two customers. Project Components: Tagbilaran 69 kV S/S: 10 MVA 69/13.8 kV Power Transformer and 3-69 kV PCB and associated

equipment.

7.5.24 Bacolod – San Enrique 69 kV Line Reclassification Existing Subtransmission System: The 30 km Bacolod-San Enrique 69 kV line is serving Central Negros Electric Cooperative, Inc.

(CENECO) and Negros Occidental Electric Cooperative, Inc. (NOCECO) and is currently classified as subtransmission asset.


Transmission Function: With the development of committed power generating

project: 50 MW Pulupandan Wind, and prospective power projects: 30 MW Diesel and 25 MW Southern Negros Biomass, this 69 kV line will be performing a transmission function. As such, with the target commissioning of these power plants in the period 2014 - 2015, NGCP will file an application before the ERC to reclassify this 69 kV line to Transmission Assets to be included in its Regulated Asset Base (RAB).

Subtransmission Asset for Reclassification to Transmission Asset: Bacolod-San Enrique 69 kV T/L, ST-SC, 1-336.4 MCM

ACSR, 30 km. 7.5.25 Cadiz – San Carlos 69 kV Line Reclassification Existing Subtransmission System: The 60.80 km Cadiz-San Carlos 69 kV line is a subtransmission asset serving the loads from

Cadiz City to San Carlos City. In 2009, this line was approved by the ERC for divestment to VMC

Rural Electric Service Cooperative, Inc. (VRESCO). Transmission Function: With the prospective development of 18 MW San Carlos

Biomass and the 19.8 MW San Carlos Solar Power Plants, the Cadiz-San Carlos 69 kV line shall no longer be solely serving VRESCO and will be functioning as a transmission facility. With the target commissioning of these RE power plants in the period 2014-2015, NGCP will file an application before the ERC to reclassify this 69 kV line to Transmission Asset to be included in its RAB.

Subtransmission Asset for Reclassification to Transmission Asset: Cadiz-San Carlos 69 kV T/L, ST-SC, 1-336.4 MCM ACSR,

60.8 km.


7.6 Overall Benefits After the Implementation of Proposed Transmission Projects for the Visayas

In the short-term, the successive completion of two-staged Cebu-Negros-Panay (CNP) 230 kV Backbone in the period 2016-2017 would allow the entry of programmed generation capacity in Cebu and Panay Islands and would also improve system reliability. In the long-term, however, the completion of CNP 230 kV Backbone will provide high transfer capacity between Cebu-Negros and Panay Islands, thus will improve both the system reliability and maintain acceptable voltage level (by minimizing system loss) to the power consumers. In addition, the completion of several 138 kV and 69 kV transmission lines, upgrading of existing 138 kV substations and 138 kV interconnection system in the period 2016-2020 will also provide increased transfer capacity to meet the projected load-growth, allow full dispatch of programmed power plants, which will also improve both the system reliability and power quality in various areas in the next 10 years.


CHAPTER 8: 2014-2023 Transmission Outlook for Mindanao 8.1 Introduction The ten-year projected demand was based on the total demand of six O&M Districts in Mindanao, as shown in Table 4.2 in Chapter 4. The 2013 projected peak demand shows that the total 507 MW demand in Southeastern Mindanao Area is about 34% of the entire 1,484 MW peak demand of Mindanao Grid. The load centers in the Southwestern part, i.e, South Cotabato, Sarrangani and Gen. Santos (SOCSARGEN) area adds 219 MW for a total of 726 MW or 49%, thus requiring the establishment of Balo-i-Villanueva-Maramag-Bunawan 230 kV (initially energized at 138 kV) Backbone Transmission System that stretches from north to south. Installed capacities based on the 2012 List of Existing Power Plants totalled 2,049.30 MW in which 1,047 MW is generated from hydroelectric power plants, which are mostly from Agus HEPPs in Lanao Del Sur and Pulangi in Bukidnon. Light loading scenario was based on historical data and was considered at 60 % of the system peak demand of Mindanao Grid. Furthermore, the following scenarios were considered in the system simulations: a) Maximum North Dispatch Scenario: Generation from the north, especially those coming from

hydro plants are maximized thereby causing the highest load to the transmission lines, which transmit power to the load centers in the south, e.g., Davao and Gen. Santos areas;

b) Drought Dispatch Scenario: The significant decrease in power generation from hydro plants

from the north is considered, thus all available power plants, particularly peaking plants are assumed to be dispatched to augment the power requirement;

c) Other Future Scenarios: 1) Development of thermal generation in Southeastern Mindanao; and

2) Linking of the Visayas and Mindanao Grids, through the implementation of the proposed Leyte-Mindanao Interconnection Project (LMIP).

8.2 Existing and Programmed Generation Capacity The Programmed Generation Capacity from the 2012 TDP Updates of the DOE for Mindanao is shown in Figure 4.4(c) and Table 4.4(c) in Chapter 4. These were further assessed in the system model including the existing generation capacity. In the said list from the DOE, a total of 2,881.1 MW will come from Conventional Power Plants composed of Coal and Diesel/Oil-Based Plants, while RE-Based Power Plants will provide a total of 224.6 MW, which details are shown in Table 8.1:


Table 8.1: Existing and Programmed Generation Capacity for Mindanao Grid

Power Plant Type/ Fuel Source/RE Source

Existing Generation

Capacity(MW)

Programmed

Generation Capacity

for 2013-2020 (MW)


Coal 232 2,840

Diesel/Oil 652 41.1

Sub-Total 884 2,881.1


Wind - -

Solar 1 35

Geothermal 108.50 50

Biomass 35.90 30

Hydro 1,047 109.60

Sub-Total 1,192.40 224.60

Total 2,076.30 3,105.70

8.3 Ongoing Transmission Projects for the 3rd Regulatory Period Similar to Luzon and the Visayas Grids, both the completed transmission projects in the 2011-2013 period and the ongoing projects for the period 2014-2015 were considered in the system model for Mindanao Grid. The details are enumerated below with the corresponding project drivers: a) Load Growth:

Balo-i-Villanueva 230 kV T/L (initially energized at 138 kV), 120 km that includes Villanueva Switching Station and Balo-i S/S Expansion composed of 16-138 kV PCB and 5-138 kV PCB and associated equipment, respectively; and

Aurora-Polanco 138 kV T/L, 92 km that includes Polanco S/S (1-75 MVA, 138/69-13.8 kV Power Transformer, 5-138 kV PCB and 4-69 kV PCB and associated equipment), Aurora S/S Expansion (3-138 kV PCB and associated equipment) and Polanco Load-end S/S composed of 3-69 kV ABS including 26 km 69 kV Line; and

Mindanao S/S Expansion Project 2, includes 138/69-13.8 kV power transformers at Gen. Santos S/S (100 MVA) and Kidapawan S/S (50 MVA).

b) Power Quality and System Reliability:

Villanueva-Maramag 230 kV T/L (initially energized at 138 kV) 108 km; Sultan Kudarat Capacitor, composed of 2 - 7.5 MVAR, 69 kV Capacitor Banks; Mindanao S/S Reliability Project 1, 138/69-13.8 kV power transformers S/S of Jasaan

(100 MVA), Bunawan (50 MVA), Aurora (100 MVA) and Lugait (75 MVA); Maramag-Kibawe 138 kV T/L, 21 km that includes 138 kV PCB and associated equipment at

Maramag (1-138 kV PCB) and Kibawe (3-138 kV PCB); Butuan-Placer 138 kV T/L, 100 km that includes 2-138 kV PCB and associated equipment

each at Butuan and Placer S/S; and Matanao-Gen. Santos 138 kV T/L, 70 km including 2-138 kV PCB and associated equipment

each at Gen. Santos and Matanao S/S.


8.4 Projects for Accelerated Implementation Shown in Table 8.2 are the three projects that need to be completed in 2015, thus NGCP filed before the ERC for the issuance of PA for accelerated implementation. Although the target completion is still within the 3rd Regulatory Period, these projects shall be included in the 4th Regulatory Reset application of NGCP and will still undergo the regulatory reset process.

Table 8.2 – Project for Accelerated Implementation


Generation Entry

Toril 138 kV Substation Davao del Sur 2015


Opol 138 kV Substation Misamis Oriental 2015

System Reliability

Agus 6 Switchyard Upgrading/Rehabilitation Lanao del Sur 2015

8.4.1 Toril 138 kV Substation Existing Transmission System: The existing Matanao-Davao 138 kV double circuit line traverses about 1 km from the site of the

ongoing 300 MW CFPP of Therma South Inc., which is targeted for commissioning in 2015. Based on the ten-year projected demand, in 2015 this 138 kV line will be 20.30% loaded during normal condition and 36.80% loaded during single outage (N-1 or outage of one circuit) contingency event.

Transmission Needs: The System Impact Study (SIS) was conducted considering the least-cost alternative proposal to

connect the proposed 300 MW CFPP to the grid through the existing Matanao-Davao 138 kV line. The result of SIS shows that to enable full dispatch of the proposed power plant, there is a need to “bus-in” or divert the double circuit 138 kV line to the proposed Toril 138 kV Substation. Furthermore, the existing maximum transfer capacity of the 138 kV line segment from the proposed Toril to Davao Substation need to be increased by reconductoring the existing conductor with higher capacity.

Major Project Components: Toril 138 kV S/S: 12-138 kV PCB and 3-69 kV PCB and associated equipment and 50 MVA

138/69-13.8 kV Power Transformer including Protection, Control, Metering and Communication Systems; and

Toril-Davao 138 kV T/L: ST-DC, from 1-795 MCM to 1-410mm2 TACSR, 17 km


8.4.2 Opol 138 kV Substation Existing Transmission/Distribution System: Misamis Oriental is located in the northern part of Mindanao and its power requirement is being

provided by the NGCP Lugait Substation through the 60 km Lugait – Carmen 69 kV line, a very old line constructed in 1966. The Misamis Oriental I Electric Cooperative, Inc. (MORESCO I) and Cagayan Electric Power and Light Company Electric (CEPALCO), a private distribution utility serving Cagayan De Oro City, handle the distribution of power to the electricity end users through their respective load-end substations connected to the said 69 kV line.

Transmission Needs: Due to the projected load growth in Misamis Oriental triggered by the development of

commercial areas around the newly constructed Laguindingan Airport, the existing Lugait-Carmen 69 kV line will no longer be sufficient to provide the needed transmission service. Considering the relatively long stretch of the 69 kV line, which is already loaded at about 70% of its maximum capacity, the result of system simulation conducted has determined the urgent need to establish a new 138 kV drawdown substation strategically located 45 km from Lugait Substation and 30 km from Tagoloan Substation. The proposed new substation will also improve the system reliability and incidentally improve the power quality to the power consumers in Misamis Oriental.

Major Project Components: Opol 138 kV S/S: 75 MVA, 138/69-13.8kV Power Transformer 3-138 kV PCB, 3-69 kV PCB and

associated equipment; Cut-in to Lugait-Tagoloan 138 kV Line:

Line 1: 138 kV, ST-DC1, 1-795 MCM ACSR, 7 km; and Line 2: 138 kV, ST-DC1, 1-795 MCM ACSR, 7 km.

Cut-in to Lugait-Carmen 69 kV Line: Line 1: 69 kV, SP-SC, 1-336.4MCM, 0.1 km; and Line 2: 69 kV, SP-SC, 1-336.4 MCM ACSR, 0.1 km.

8.4.3 Agus 6 Switchyard Upgrading/Rehabilitation Existing Transmission System: The existing switchyard of Agus 6 HEPP serves as a connection point between the two Agus

HEPP, the Lanao Electric Cooperative (LANECO), Iligan Light and other directly connected customers such as Mabuhay Vinyl, Platinum Group Metals Corp., Treasure Steelworks and Pilmico. Mindanao is highly dependent on hydroelectric power generation that provides more than 50% of the overall power supply. The entire Agus HEPP Complex in Lanao Del Sur has a total dependable capacity of 580 MW in which about 30% or 182 MW comes from Agus 6 and 7 HEPP, which are Ancillary Service Providers to the Mindanao Grid.


Transmission Needs: Considering the switchyard equipment’s deteriorating condition and old age, having been

constructed in 1953, the Agus 6 Switchyard Upgrading/Rehabilitation will improve the system reliability. This is primarily intended to prevent sudden disengagement of Agus 6 and 7 HEPP from the grid, which will cause significant loss of generation to the power deficient island. Furthermore, the proposed switchyard upgrading/rehabilitation will address the difficulty in maintenance due to scarcity of spare parts in the market because of obsolescence and also will meet the standards of the new protection philosophy requirements.

Major Project Components: 6 – 138kV PCB, 17 – 69kV PCB and associated equipment; 2-300 kVA 13.8 KV Station Service Transformer and Secondary Devices;

(Including Disconnect Switches, Current Transformers, Voltage Transformers, Surge Arresters, AC and DC auxiliary panels, storage batteries and Uninterruptible Power Supply);

New Control, Auxiliary and Bay Control Unit Buildings; and Demolition/Dismantling/Removal/Restoration related works 8.5 Proposed Transmission Projects for 2016-2023 The following were considered in the system model used in the conduct of GIS, which determines the transmission system requirement in Mindanao: a) Target commissioning and dependable capacities (on top of existing dependable capacities) of

incoming power plants, both Conventional and the emerging RE-Based Power Plants: Hydro, Geothermal, Biomass, and Solar PV;

b) The need to meet the projected demand of various load centers; c) The need to energize to 230 kV the Balo-i-Villanueva-Maramag-Bunawan Backbone

Transmission System, which is initially energized at 138 kV, thus provide a more efficient transmission of generated power from Agus and Pulangi HEPP, etc. in the north to south especially during summer; and


improve system reliability. Shown in Table 8.2 is the list of transmission projects planned for Mindanao in the period 2016-2023.


Table 8.3: Proposed Transmission Projects for Mindanao Project Name/Driver(s) Province(s) ETC

Generation Entry

Balo-i-Villanueva-Maramag-Bunawan 230 kV Energization

Lanao del Sur, Mis. Oriental, Bukidnon and Davao del Sur 2017

Balo-i-Kauswagan-Aurora 230 kV T/L (Phase 1) Lanao del Norte 2017

Balo-i-Kauswagan-Aurora 230 kV T/L (Phase 2) Lanao del Norte, Misamis Occidental, Zamboang del Sur 2019


Malita-Matanao-Bunawan 230 kV T/L Davao Del Sur 2018

Generation Entry, Load Growth and System Reliability

Villanueva-Jasaan-Butuan 138 kV T/L Misamis Oriental and Agusan del Norte 2018


Central Mindanao Substations Upgrading Lanao del Sur, Misamis Oriental and Bukidnon 2018

CARAGA Substations Upgrading Surigao del Norte, Agusan del Norte, Agusan del Sur and Compostela Valley

2018

Zamboanga Peninsula Substations Upgrading

Zamboanga Den Norte, Zamboanga del Sur and Zambonag Sibugay

2018

Davao Region Substations Upgrading Davao del Sur 2020

Balo-i-Tagoloan-Opol 138 kV T/L Lanao del Sur and Misamis Oriental 2020

System Reliability

Agus 2 Switchyard Upgrading Lanao del Sur 2017

Tacurong-Sultan Kudarat 138 kV T/L South Cotabato and Sultan Kudarat 2018

Tacurong-Kalamansig 69 kV T/L South Cotabato and Sultan Kudarat 2020



Pulangi 4 Switchyard Upgrading/Rehabilitation Bukidnon 2020

Mindanao PCB Replacement II Mindanao 2020

Power Quality

Mindanao Voltage Improvement 1 Mindanao 2018

8.5.1 Balo-i-Villanueva-Maramag-Bunawan 230 kV Energization Existing Transmission System: Presently, the Mindanao Backbone provides additional transmission corridor to the existing Agus

Hydro Plants, which presently accounts for the majority of power delivered in the Mindanao Grid. The initially energized 138 kV Mindanao Backbone serves as an initial step in developing a higher capacity transmission highway from north to south of the grid to meet the increasing demand in the southern part of Mindanao; and

With the completion of the remaining stretch of the Balo-I – Villanueva – Maramag – Bunawan 230 kV transmission line, it is anticipated to provide a vital link, thereby ensuring stability and reliability of power supply in the whole island.

Transmission Needs: The impending entry of power plants with significant generation capacity, requires energizing the

Mindanao Backbone to higher voltage level. This is intended to full dispatch these new power plants by increasing the transmission capacity of the Mindanao Backbone.


Major Project Components: Balo-i 230 kV S/S: 2-300 MVA 230/138-13.8 kV Power Transformer, 6-230 kV PCB and

associated equipment; Villanueva 230 kV S/S: 2-300MVA 230/138-13.8 kV Power Transformer, 14-230kV PCB and

associated equipment, 2-35 MVAR 230kV Shunt Reactors; Maramag 230 kV S/S: 2-300MVA 230/138-13.8 kV Power Transformer, 10-230 kV PCB and

associated equipment; and Bunawan 230 kV S/S, 2-300MVA 230/138-13.8 kV Power Transformer, 6-230kV PCB and

associated equipment. 8.5.2 Balo-i-Kauswagan-Aurora 230 kV Transmission Line (Phase 1 and Phase 2) Existing Transmission System: Presently, the Mindanao Grid has been continuously

experiencing power shortage due to insufficient generation capacity. The island is highly dependent on hydroelectric power which is more than fifty percent of the overall power generation, which sources are generally located in Northern Mindanao region. With the possible occurrence of El Niño phenomenon, Mindanao Grid will still be vulnerable due to its dependence on hydro-generated power; and

With growing electricity demands of the Zamboanga Peninsula together with the security of the existing links of the peninsula to the Mindanao Grid, the continuity of power delivery is deemed necessary. Still considered as the trade center in Mindanao, there are four active airports in this western area located in the cities of Ozamiz, Dipolog, Pagadian, and Zamboanga.

Transmission Needs: There is a need to implement a new double circuit 230 kV line from Kauswagan Substation to

Balo-i Substation to accommodate the proposed 4x600 MW Coal Plant of GN Power. Moreover, considering the growing demand and reliability of the existing transmission line connecting the Zamboanga Peninsula to the Mindanao Grid, it is necessary to construct an additional double circuit 230 kV line from Kauswagan Substation to Aurora Substation. This is in lieu of the deferred Agus 6 – Aurora 138 kV Transmission Line Project.

Major Project Components: Phase 1 Balo-I – Kauswagan 230 kV T/L: ST-DC, 2-410mm2 TACSR, 11 km; Kauswagan 230 kV S/S: 10-230 kV PCB and associated equipment; and Balo-I S/S Expansion, 4-230 kV PCB and associated equipment


Phase 2 Aurora-Kauswagan 230 kV T/L: ST-DC, 2-795 MCM ACSR, 73 km; Aurora S/S Expansion: 6-230 kV PCB, 4-138 kV PCB and associated equipment, 2-300 MVA

230/69-13.8 kV Power Transformer; and Kauswagan S/S Expansion: 2-230 kV PCB and associated equipment 8.5.3 Malita – Matanao – Bunawan 230 kV Transmission Line (Phase 1 and 2) Existing Transmission System: By 2015, the Matanao-Toril-Davao 138 kV line is the major transmission highway for power

generation plants serving key cities such as Davao and General Santos. With the scarcity of power supply being experienced in Mindanao, additional power generation is deemed necessary.

Transmission Needs: Considering the geographical location and the huge capacity of the CFPP, the readiness of the

Mindanao Grid to accommodate such significant capacity addition is being challenged. As such, the proposed entry of the San Miguel Consolidated Power Corporation’s (SMCPC’s) 600 MW CFPP consequently requires 230 kV lines to be initially connected to Matanao 138 kV Substation and eventually through Bunawan 230 kV Substation via 230 kV lines to prevent overloading of the Matanao-Toril-Davao 138 kV line upon the commissioning of remaining units of CFPP.

Major Project Components: Phase 1 Malita-Matanao 138 kV T/L: ST-DC,

2-410mm2 TACSR, 11 km; Malita 138 kV S/S: 6-230 kV PCB and

2-138 kV PCB including associated equipment, 1-50 MVA 138/69-13.8 kV Power Transformer; and

Matanao S/S Expansion: 3-138kV PCB and associated equipment.

Phase 2 Matanao-Bunawan 230 kV T/L, ST-DC,

2-410 mm2 MCM TACSR, 84 km; Malita S/S Expansion, 4-230 kV PCB and

1-138 kV PCB including associated equipment; and

Bunawan S/S Expansion, 4-230 kV PCB and associated equipment.


8.5.4 Villanueva–Jasaan–Butuan 138 kV Transmission Line Existing Transmission System: The Villanueva–Jasaan 138 kV line is the major

transmission highway for power generation from Lanao area towards the Northeastern Mindanao Area (NEMA). The NEMA covers the provinces of Agusan del Norte, Agusan del Sur, Surigao del Norte and Surigao del Sur. At present, the only power source in the area is the Therma Marine Mobile 2 diesel generator with an installed generation capacity of 2x50 MW, while majority of the cheaper generations sources, i.e., hydropower and coal-fired plants are located in Lanao, Misamis Oriental, and Bukidnon.

Transmission Needs: The total power demand in NEMA has reached more

than 130 MW and is expected to increase at a significant rate in the next 10 years. This projected increase in power demand in NEMA requires the implementation of 3rd circuit of Villanueva-Jasaan 138 kV Line to prevent overloading should there be an outage in one of the three circuits. In addition, there is also a need to “bus-in” or divert the existing Jasaan-Butuan 138 kV double circuit line to Nasipit Substation and install additional 50 MVA transformer thereat to improve system reliability as well as improve power quality at Butuan, Placer and San Francisco Substations during N-1 event.

Major Project Components: Villanueva–Jasaan 138 kV T/L, ST-SC, 1-795 MCM ACSR, 12 km; Nasipit–Tower 179 138 kV T/L:

Line 1: ST-SC, 1-795 MCM ACSR, 4 km; and Line 2: ST-SC, 1-795 MCM ACSR, 4 km

Nasipit S/S Expansion: 1-50 MVA, 138/69-13.8 kV Power Transformer, 9-138 kV PCB and associated equipment;

Jasan S/S Expansion: 2–138kV PCB and associated equipment; and Villanueva S/S Expansion: 2-138 kV PCB and associated equipment


8.5.5 Central Mindanao Substations Upgrading Existing Transmission/Distribution System: In 2018, the existing 75 MVA transformer in Maramag Substation is projected to be loaded at

more than 60% of its rated capacity. Substantial growth in the load of 100 MVA transformer situated in Agus 6 Switchyard is likewise observed. Outage of these sole transformers in each substation will cause power interruption to the directly connected customers and DUs in the said facilities. Shedding of loads connected to Tagoloan Substation is similarly anticipated during N-1 condition during an outage in any of its existing 2-100 MVA power transformers.

Transmission Needs: Peak demand forecasts for the DUs and ECs located in Lanao and North Central Mindanao

areas indicate a significant increase in the next several years. This growth can be attributed to the expected economic developments in these areas, particularly in the towns and cities under the franchise areas of the following DUs and ECs: Lanao del Norte Electric Cooperative (LANECO), Cagayan Electric Power and Light Co. Inc. (CEPALCO), Iligan Light and Power Inc. (ILPI), Bukidnon II Electric Cooperative, Inc. (BUSECO II), and First Bukidnon Electric Cooperative, Inc. (FIBECO). This requires the installation of additional transformer in Tagoloan Substation. Similarly, this project involves the installation of supplementary capacities in Maramag Substation and Agus 6 Switchyard to ensure the reliability of transmission facilities during N-1 contingency conditions.

Major Project Components: Tagoloan 138 kV S/S, 1-100 MVA, 138/69-13.8 kV Power Transformer, 2-138 kV PCB and

associated equipment; Maramag 138 kV S/S, 1-75 MVA, 138/69-13.8 kV Power Transformer, 2-138 kV PCB and

associated equipment; and Agus 6 Switchyard, 1-100 MVA, 138/69-13.8 kV Power Transformer, 2-138 kV PCB and

associated equipment 8.5.6 CARAGA Substations Upgrading Existing Transmission/Distribution System: The power transmission system in the north eastern part of Mindanao, which is composed of

Agusan Del Norte, Agusan Del Sur Surigao Del Norte and Surigao Del Sur, is through the 138 kV lines linking Butuan, Placer, San Francisco and Bislig Substations. These 138 kV substations are linked through the 69 kV lines to the load-end substations of each seven electric cooperatives that handle the power distribution to the consumers in their respective franchise areas: Surigao del Norte Electric Cooperative, Inc. (SURNECO), Surigao del Sur Electric Cooperative I and II, Inc. (SURSECO I and SURSECO II), Siargao Electric Cooperative, Inc. (SIARELCO), Agusan del Norte Electric Cooperative, Inc. (ANECO), Agusan del Sur Electric Cooperative, Inc. (ASELCO) and Davao Oriental Electric Cooperative, Inc. (DORECO).


Transmission Needs: The significant increase in projected demand in the next ten years is due to the anticipated entry

of generation developments, additional mining explorations and the corresponding expansions of existing mining companies in the area. As such, additional transformers need to be installed at Placer and Butuan Substations to accommodate the projected increase in power demand. Likewise, additional transformers are also needed to provide single outage contingency at San Francisco and Bislig Substations. Based on the result of system study conducted, to address low voltage or improve the power quality in Surigao Del Norte, there is also a need to install capacitor banks at the 69 kV bus in Placer Substation.

Major Project Components: Butuan 138 kV S/S: 1-100 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB and

associated equipment; Placer 138 kV S/S: 1-100 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB and

associated equipment and 2-7.5 MVAR 69 kV Capacitor Banks; San Francisco 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB and

associated equipment; and Bislig 138 kV S/S: 1-50 MVA 138/69-13.8 kV Power Transformer, 2-138 kV PCB and associated

equipment 8.5.7 Zamboanga Peninsula Substations Upgrading Existing Transmission/Distribution System The existing 138 kV substations in Zamboanga Peninsula are the Aurora, Naga-Mindanao,

Zamboanga and Pitogo Substations. The implementation of the proposed Polanco 138 kV Substation under the Aurora-Polanco 138 kV Transmission Line, a committed project that will serve Dipolog and Dapitan Cities and other adjacent municipalities in Zamboanga del Norte is still ongoing. Power distribution to the end users in Zamboanga Peninsula is handled by Zamboanga del Sur Electric Cooperative (ZAMSURECO-1), Zamboanga del Sur II Electric Cooperative (ZAMSURECO 2), Zamboanga City Electric Cooperative Inc. (ZAMCELCO) and Zamboanga del Norte Electric Cooperative Inc. (ZANECO) via their respective load-end substations that are connected to the NGCP Substations through 69 kV lines.

Transmission Needs: Zamboanga Peninsula is considered as one of the regions in the country with the fastest

population growth rate. It has also several trading posts/centers and is home to four of the eight major airports in Mindanao. Considering the ten-year projected demand of the power distribution utilities and electric cooperatives as a result of economic growth, two existing substations will require additional power transformers to increase its present capacities. On the other hand, the other two substations with only one transformer unit also needs to be installed with another transformer with the same capacity to improve the system reliability at the substation level.


Major Project Components: Polanco 138 kV S/S: 1–75MVA,138/69–13.8kV Power Transformer and 2–138kV PCB including

associated equipment; Pitogo 138 kV S/S: 1–100MVA,138/69–13.8kV Power Transformer, 2–138 kV PCB and

associated equipment; Zamboanga 138 kV S/S: 1-100 MVA, 138/69-13.8 kV Power Transformer, 2-138 kV PCB and

associated equipment; and Naga Mindanao 138 kV S/S: 1-100 MVA, 138/69-13.8 kV, 2-138 kV PCB and associated

equipment 8.5.8 Davao Region Substations Upgrading Existing Transmission/Distribution System: The bulk power delivery points in South Eastern Mindanao (SEMA) or more commonly known as

Region IX or Davao Region, which is composed of four provinces, namely Davao del Norte, Davao del Sur, Davao Oriental and Compostela Valley is through Davao and Kidapawan Substations. Davao Substation is linked via 138 kV lines to both Bunawan and Kibawe Substations, while Kidapawan Substation is linked via 138 kV line to Matanao Substation; and

Power distribution to the end users is handled by three electric cooperatives: Davao Oriental Electric Cooperative (DORECO), Davao del Norte Electric Cooperative (DANECO), and Davao del Sur Electric Cooperative, Inc. (DASURECO), while the sole private distribution utility is Davao Light and Power Corp. (DLPC).

Transmission Needs: The power demand in SEMA is projected to increase significantly in the next ten years, such that

the existing transformer capacities in Kidapawan and Davao Substations will no longer be sufficient to accommodate increase in load starting in the period 2019-2020. Likewise, the said substations also need to have single outage contingency to prevent power curtailment should a transformer outage occurs.

Major Project Components: Kidapawan 138 kV S/S: 1–50MVA, 138/69–13.8 kV Power Transformers, 2-138 kV PCB and

associated equipment; and Davao 138 kV S/S: 1–150MVA, 138/69–13.8 kV Power Transformers, 2-138 kV PCB and

associated equipment.


8.5.9 Balo-i-Tagoloan-Opol 138 kV Transmission Line Existing Transmission System: The total power demand in North Central Mindanao Area

(NCMA), which covers the provinces of Bukidnon and Misamis Oriental, has already reached more than 180 MW and is expected to continuously increase at a significant rate in the next ten years.

Transmission Needs: With the projected completion of the proposed Opol Substation by the first quarter of 2015, the

existing Lugait – Tagoloan 138 kV line needs to be diverted through “cut-in” connection via the construction of two circuits, employing steel tower double circuit design, constructed initially with single circuit strung utilizing 1-795 MCM ACSR conductor. Tagoloan Substation is also presently connected to Balo-i Substation through the existing 138 kV ST-SC, 1-795 MCM ACSR conductor; and

Given the rapid growth in demand, the existing transmission system, particularly the capacity of Opol Substation, may not be able to comply with the power quality standards prescribed under the PGC during single outage (N-1) contingency condition. The Project requires the Balo-i-Tagoloan 138 kV Line “bus-in” to Opol Substation which will address the possible low voltage that may be experienced by customers served by Opol Substation during the outage of the Opol – Tagoloan 138 kV ST-SC line. Another component is the additional 1-75 MVA transformer at Opol Substation which will comply with the N-1 criterion to ensure the security and reliability of the grid during such condition.

Major Project Components: Opol S/S Bus-in to Balo-i-Tagoloan 138 kV Line:

Line 1: 138 kV, ST-DC1, 1-795 MCM ACSR, 7 km Line 2: 138 kV, ST-DC1, 1-795 MCM ACSR, 7 km; and

Opol 138 kV S/S: 1–75 MVA, 138/69–13.8 kV Power Transformer, 3-138 kV PCB and associated equipment, 3-69 kV PCB and associated equipment.

8.5.10 Agus 2 Switchyard Upgrading Existing Transmission System: The Agus 2 138 kV Switchyard, together with the Agus 5, 6 and Pulangi 4 Switchyards, were

among those assets classified by Joint PSALM-NPC-TransCo Working Group on Fixed Asset Boundary (TWG-FAB) that perform grid or transmission functions. As such, these were turned-over in 2010 to NGCP, which has been responsible for the switchyards’ improvement, expansion, operation, and/or maintenance. Currently, it is in a breaker-and-a-half configuration consisting of 14 sets of 138 kV SF6 circuit breakers and connected to NGCP Balo-I and Kibawe Substation via a double circuit 138 kV line with 795 MCM ACSR conductor.


At present, high voltage equipment installed at Agus 2 138 kV Switchyard are operated and controlled both at the Agus 2 HEPP control room and Agus 2 138 kV Switchyard control room, which is shared with the control engineers of the National Power Corporation (NPC).

Transmission Needs and Other Consideration: Given the current set-up of having shared control room facilities for Agus 2 HEPP and Agus 2

Switchyard, it requires a separate control building for Agus 2 Switchyard to aid NGCP personnel in operating and maintaining the said switchyard independently according to the policies, protocols and procedures of NGCP as these are different with that of NPC. Consequently, there is a need to install new monitoring, switching, metering, annunciation and control equipment in order to have full control of the switchyard. The proposed upgrading/rehabilitation will also address the deteriorating physical and operational condition of the high voltage equipment in the switchyard considering that these are now aged and prone to malfunction.

Major Project Components: Agus 2 Switchyard: 2-138 kV PCB and other old/aged and/or defective equipment; and Expansion of the existing Control Building Flood Control System. 8.5.11 Tacurong–Sultan Kudarat 138 kV Transmission Line Existing Transmission/Distribution System: The provinces of Maguindanao, Sultan Kudarat and South Cotabato are drawing their power

requirement from NGCP’s Sultan Kudarat and Tacurong Substations through the following 138 kV transmission corridors: 62.58 km Kibawe-Sultan Kudarat, 71.62 km Kibawe-Tacurong and 80 km Gen. Santos-Tacurong. Power distributors in this southwestern portion of Mindanao Grid, include: Maguindanao Electric Cooperative (MAGELCO); Cotabato Light and Power Company (COLIGHT); Sultan Kudarat Electric Cooperative (SUKELCO); South Cotabato I Electric Cooperative, Inc. (SOCOTECO I) and South Cotabato II Electric Cooperative, Inc. (SOCOTECO II); and

Under normal condition, the Sultan Kudarat Substation is served through Kibawe Substation, however, when the 138 kV line is on outage or in preventive maintenance, Tacurong Substation can accommodate the loads of Sultan Kudarat Substation via the 102 km Tacurong-Cotabato-Sultan Kudarat 69 kV line with limited capacity. Hence, some of the electricity end users have experienced frequent low voltage due to relatively long transmission lines, which is further aggravated by limited power generation in the area.

Transmission Needs and other Consideration: The anticipated increase in projected demand in the

next ten years brought by the October 2012 signing of preliminary peace agreement for the creation of the Muslim autonomous political entity “Bangsamoro”, would require a more reliable power delivery system; and

Based on the 2012 PDP Update from the DOE,


several generation developments in Davao and South Cotabato areas have intentions to connect to the grid in the next five years. Thus, the need to establish a new 138 kV line with higher transfer capacity linking Tacurong and Sultan Kudarat Substations to provide an alternative power transmission corridor for Cotabato City and adjacent municipalities.

Major Project Components: Tacurong-Sultan Kudarat 138 kV T/L, ST-SC, 1-795 MCM ACSR, 101 km; Tacurong 138 kV S/S: 2-138 kV PCB and associated equipment; and Sultan Kudarat S/S Expansion: 2-138 kV PCB and associated equipment. 8.5.12 Tacurong-Kalamansig 69 kV Transmission Line Existing Transmission/Distribution System: The power requirement of the province of Sultan Kudarat, which is located on the southwestern

part of Mindanao, is at the moment being supplied by the grid through the following three 138 kV line corridors, namely: Kibawe-Sultan Kudarat, Kibawe-Tacurong and Gen. Santos-Tacurong. Power distribution in the area is handled by Sultan Kudarat Electric Cooperative, Inc. (SUKELCO) and the power supply, a diesel generator, is being provided by NPC-SPUG to some far flung municipalities.

Transmission Needs and other Consideration: With the limited source and supply of power in the area, there is a need to provide a grid

connection to the off-grid municipalities of Bagumbayan, Ninoy Aquino, Lebak and Kalamansig. This will allow these towns in Sultan Kudarat to have access to a secured, reliable and efficient power delivery services. Thus, it will serve as catalyst for economic development and likewise accelerates the total electrification of the province.

Project Components: Tacurong-Kalamansig 69 kV T/L, ST-SC, 1-336.4 MCM ACSR, 85 km; Tacurong 69 kV S/S: 1-69 kV PCB and associated equipment; and Kalamansig 69 kV S/S: 1-7.5 MVAR 69 kV Capacitor Bank.

8.5.13 Agus 1 Switchyard Upgrading / Rehabilitation Existing Transmission/Distribution System: The Agus 1 138 kV Switchyard is at breaker-and-a-half configuration consisting of four sets of

138 kV circuit breakers and connected to Agus 2 Switchyard via single circuit 138 kV line.

Transmission Needs and other Consideration: There is a need for a second 138 kV transmission line from Agus 1 to Agus 2 Switchyard to

increase the power transfer capacity and ensure continuous power delivery system should there


be an outage in any of the 138 kV Agus 1 – Agus 2 line. The proposed project will also provide additional 50 MVA substation capacity to the Mindanao Grid.

Major Project Components: Agus 1-Agus 2, 138 kV Line 2, ST-SC, 1-795 MCM ACSR, 6 km; and Agus 1 Switchyard: 1-50 MVA, 138/69-13.8 kV Power Transformer, 1-69 kV PCB and associated

equipment. 8.5.14 Agus 5 Switchyard Upgrading / Rehabilitation Existing Transmission/Distribution System: The Agus 5 138 kV Switchyard is also one of the assets turned-over to NGCP by NPC. It has a

breaker-and-a-half configuration consisting of six sets of 138 kV SF6 circuit breakers which is presently connected to NGCP Aurora and Balo-I Substations via a single circuit 138 kV line. Similar to the case of Agus 2 138 kV Switchyard, high voltage equipment at the Agus 5 138 kV Switchyard are also operated and controlled at the control room facility of NPC, which is shared with NGCP.

Transmission Needs and other Consideration: There is also a need for a separate control building for Agus 5 138 kV Switchyard. This will

ensure continuity of operations and maintenance activities by NGCP personnel in accordance with its policies, protocols and procedures. Accordingly, this is also in preparation to the upcoming privatization of the power plant which may result in conflict of policies/rules and system with NGCP during emergency situations/conditions. In addition, there ia also a need to install a new monitoring, switching, metering, annunciation and control equipment in order to have full control of the switchyard. The proposed upgrading/rehabilitation will likewise address the deteriorating condition as to physical and operational aspect of some of the high voltage equipment in the switchyard.

Major Project Components: Agus 5 Switchyard: 1 - 138 kV PCB and other old/aged and/or defective equipment; Upgrading of Protection, Control, Monitoring and Communication System; and Construction of Separate Control Building, Switchyard Perimeter Control, Wall/Flood Control

System. 8.5.15 Pulangi 4 Switchyard Upgrading/Rehabilitation Existing Transmission/Distribution System:

The Pulangi 4 138 kV Switchyard is one of the assets turned-over to NGCP by NPC. It has a

breaker-and-a-half configuration consisting of 12 sets of 138 kV circuit breakers and connected to NGCP Kibawe and Tagoloan Substations via double circuit 138 kV line.


Transmission Needs and other Consideration: As the demand continue to grow, the old PCB installed in Pulangi Substation, no longer have the

functional capability to efficiently respond to any system disturbance in the power network. Moreover, these PCB are now difficult to maintain due to diminishing supply of spare parts in the market.

Major Project Component: Pulangi Switchyard: 11-138 kV PCB and associated equipment.

8.5.16 Mindanao Power Circuit Breaker Replacement II Transmission Needs and other Consideration: As demand continues to grow, the old PCB that have been installed in various substations in

Mindanao have already reached its economic life. These will be replaced as they are already considered unreliable which may jeopardize the overall system reliability and security of the grid.

Table 8.4 – Mindanao Power Circuit Breaker Replacement II Project Components

Substation / Switchyard No. of 138 kV PCB

and associated equipment

No. of 69 kV PCB and associated

equipment

Agus 1 and 2 Switchyard 4 -

Agus 5 Switchyard 6 -

Aurora Substation 2 3

Balo-I Substation 7 1

Bislig Substation 3 4

Bunawan Substation - 1

Butuan Substation 5 3

Davao Substation 8 2

General Santos Substation 1 4

Lugait Substation 1 -

Maco Substation - 2

Maramag Substation 9 -

Nabunturan Substation 3 1

Naga Substation - 3

Nasipit Substation 4 -

Placer Substation 1 -

Sultan Kudarat Substation - 1

Tacurong Substation 1 8

Zamboanga Substation 2 2

8.5.17 Mindanao Voltage Improvement 1 Existing Transmission System:

Aside from the Agus Complex Plants situated in the Northern Mindanao, several diesel power plants are currently situated in various locations in Mindanao. The power generated from these plants is transmitted to the load centers in Davao provinces and SOCCSKSARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos). The power demand in these two areas approximately accounts for about 50% of the island’s total demand, with the


power flow generally from north to south. The bulk of power flows through the north through the existing 138 kV transmission corridors.

Transmission Needs and other Consideration:

To address the current power generation deficiency in Mindanao resulting to frequent rotating brownouts, the IMEM was established in 2013. Its main objective is to “encourage electric power industry participants to provide adequate capacity to meet demand including among others, reserve requirements”. Given the entry of the electricity market in the island, diesel plants may be displaced. Considering this scenario, very low voltage in the area of north eastern and southern Mindanao, especially during peak condition, will be experienced if no voltage compensation is available during this contingency event. This project involves installation of 69kV capacitor banks at various substations in Districts 4 and 6 to improve the power quality and reliability of transmission service in these areas.

Project Component: 6 – 7.5 MVAR, 69 kV Capacitor Banks


8.6 Overall Benefits After the Implementation of Proposed Transmission Projects for Mindanao

For the period 2016-2020, the completion of Balo-i-Villanueva-Maramag-Bunawan 230 kV Backbone will provide roughly 1,000 MW additional transmission capacity to the existing transmission corridors i.e., Agus 2-Kibawe, Balo-i-Villanueva-Maramag-Kibawe-Davao, and the eastern transmission line. The extensions of the 230 kV backbone, which are the Balo-i-Kauswagan-Aurora in the north and Malita-Matanao-Bunawan in the south, will accommodate the entry of bulk power generations to support the growing power requirement in the island and other grids. Further, the proposed Balo-i–Kauswagan-Aurora will enhance the reliability of power transmission to Zamboanga Peninsula. Before the end of 2020, the Leyte-Mindanao Interconnection will be completed/energized with 450 MW maximum transfer capacity, which will enable the exchange of energy among the grids during the shortfall or surplus of power supply in Mindanao. The new 138 kV transmission line linking Tacurong and Sultan Kudarat Substations will increase the power transfer capability of the grid in the south western provinces. In addition, the 12-kilometer Villanueva-Jasaan Line 3, the 14-kilometer Balo-i-Tagoloan Bus-in to Opol in Misamis Oriental, and the 8-kilometer Jasaan-Butuan Bus-in to Nasipit in Agusan del Norte will complement load growth, single-outage contingencies (N-1) and power quality requirements in the affected areas. A total of 1,175 MVA transformer capacity allocated in various substations will accommodate the projected increase in power demand and meet the N-1 contingency requirement of the island, while the installation of a total of 45 MVAR capacitor banks in various substations will maintain an acceptable voltage level during peak demand condition. New 138 kV substations will also be completed and operational such as the Opol Substation which will address the expected overloading of Lugait-Carmen 69 kV line as well as the low voltage problem in Misamis Oriental. Given the long-standing power deficiency in Mindanao, the completion of Toril Tubstation will allow the full dispatch of the anticipated 300 MW CFPP in Davao area. With the completion of all these transmission projects in Mindanao by end of 2023, the power quality will be improved and the network will be fully N-1 compliant as required by the PGC.




CHAPTER 9: 2014-2023 Major Island/Grid Interconnections

9.1 Island Interconnection With the archipelagic nature of the Philippines, one of the challenges increasing system reliability and reducing spinning reserve requirements without adding new generation is the interconnection of two or more islands by the use of an undersea cable. Major considerations in the implementation of such kind of project are the required investment and the potential generation resources in the concerned island. The power cable systems have exhibited high reliability and long life of more than 20-30 years with limited maintenance.

9.1.1 Existing Island Interconnections

Appendix 6 shows the existing Island Interconnection in the country. As of December 2013, the Philippines has seven major undersea island interconnection systems: six High Voltage Alternating Current (HVAC) and one High Voltage Direct Current (HVDC). These are the Leyte-Luzon ± 350 kV HVDC, Leyte-Cebu 230 kV, Negros-Panay 138 kV, Cebu-Negros 138 kV, Cebu-Lapu-lapu 138 kV HVAC and the Panay-Boracay 69 kV AC Interconnection facilities. The 432-km Leyte-Luzon ± 350 kV HVDC, with a 23-km connecting Leyte Island (via Samar Island) to the Luzon Grid has been in operation since 1998. Its maximum transmission capacity is 440 MW with provision for upgrade to 880 MW. The Leyte-Cebu interconnection is a 33-km double circuit 230 kV submarine cable, with a transfer capacity of nearly 400 MW. The first and second circuits were energized in 1997 and 2005, respectively. The double circuit Cebu-Negros Interconnection enables power sharing of maximum of 180 MW between Cebu and Negros Islands. Its first circuit of 18-km, 138 kV submarine cable was energized in 1993 while its second circuit was energized in 2007. From Negros Island, connected is the 18-km 138 kV Negros-Panay Interconnection, energized in 1990 with a rated capacity of 85 MW. Connecting the island of Mactan to mainland Cebu is the 8.5-km 200 MW capacity submarine cable that was energized in 2005. It is laid underneath the Cebu-Mactan Bridge. Another island interconnection is the Leyte-Bohol Interconnection, a submarine cable that allows a maximum power flow of 90 MW to the island of Bohol since 2004.

9.1.2 Benefits of Island Interconnection

The following are some of the salient benefits of island interconnections:

a) Generally, island interconnections can provide additional power supply similar to a generator

having the ability to import power when required;

b) With island interconnections, the most efficient generator across both power systems is brought on to meet demand resulting in a more efficient dispatch;

c) Island interconnections also reduces power curtailment as it provides a means of exporting power when there is surplus from other island; and


d) Renewable energy sources, such as wind, hydro and geothermal potential sites suitable for energy generation may also be taken into consideration. These are clean and sustainable sources of energy that may become attractive for development by generation proponents as a result of a wider market due to island interconnection.

Considering these salient and other intangible benefits, island interconnections become more economically attractive in the long run. However, detailed studies should be undertaken to quantify the overall benefits to the receiving island. 9.1.3 Major Project Development Considerations for Island Interconnections

The following major considerations shall be taken into account in the project development of island interconnections:

a) The depth of the seabed between two islands is always an issue in interconnecting islands. This is due to mechanical stress that the cable must be designed to withstand cable weight, sea current, bottom drag, etc. during installation and repairs;

b) The use of HVAC or HVDC transmission systems, the size and length of the cable, the existing situation of the grid, estimated load growth, environmental impact and public acceptance and the possibilities for the development of energy resources; and

c) On the operational side, single outage contingency or N-1 reliability criterion needs to be clarified further if it will be economically beneficial to the power consumers.

9.2 Transmission Backbone and Island Interconnection Projects for 2016-2023 The 2010 TMP provides the overall transmission backbone development framework for the country. Figure 9.1 shows the development of transmission backbones and island interconnections. While some segments of the transmission backbones are already programmed for implementation within the Fourth Regulatory Period (2016-2020), as discussed in Chapters 6 (Luzon), 7 (Visayas) and 8 (Mindanao), however, other segments will still be subjected to a more thorough system analyses or even Feasibility Study for some big and more complicated backbone projects. Shown in Table 9.1 are the 500 kV and 230 kV Backbone as well as major island/grid interconnection in the planning stage including various segments as envisioned in the 20-year TMP. Included in Appendix 9 is the Grid Development Map, which shows the long-term blue print for the transmission expansion and upgrading for Luzon, the Visayas and Mindanao Grid.


Table 9.1 - Proposed Transmission Backbones Including Island/Grid Interconnections Item No.

Transmission Backbone and Island Interconnections

Project Drivers

Province(s) ETC

1

Northern Luzon 230 kV Backbone

Laoag-Bangui 230 kV T/L GE and SR Ilocos Norte -

Tuguegarao-Lal-lo 230 kV T/L PQ and LG Cagayan 2018

Lal-lo-Bangui 230 kV T/L GE and SR Cagayan and Ilocos Norte -

2

Western Luzon 500 kV Backbone

Hermosa-San Jose 500 kV T/L GE Bataan and Bulacan 2019

Western 500 kV Backbone (Stage 1)/1 GE Bataan and Zambales 2017

Western 500 kV Backbone (Stage 2)/2 GE and SR Zambales and Pangasinan -

3

Metro Manila 500 kV Backbone Loop

Antipolo-Taguig 500 kV T/L LG and SR Rizal and Metro Manila 2019

Taguig-Alaminos 500 kV T/L/3 LG and SR Metro Manila and Laguna -

Bataan-Cavite 500 kV T/L /3 GE Bataan and Cavite -

4 Batangas-Mindoro Interconnection SI Batangas and Mindoro 2023

Mindoro-Panay Interconnection SR Mindoro and Aklan, Panay Island -

5

Cebu-Negros-Panay 230 kV Backbone

Cebu-Negros-Panay 230 kV Backbone (Stage 1) GE and SR Iloilo and Negros Occidental 2016

Cebu-Negros-Panay 230 kV Backbone (Stage 2) GE Cebu 2017

6 Leyte-Mindanao Interconnection SI 2018

7 Energization of the Mindanao Backbone to 230 kV GE Lanao del Norte, Mis. Oriental, Bukidnon and Davao del Sur

2017

GE – Generation Entry; SR – System Reliability; LG – Load Growth; and PQ – Power Quality SI – Strategic Interconnection /1 – Hemosa-Castillejos 500 kV T/L (to be initially energized at 230 kV)

/2- Castillejos-Bolo 500 kV T/L

/3 – For Feasibility Study

The preparation of system model for Luzon, the Visayas and Mindanao Grids used in the conduct of system study to determine the needed transmission projects for the period 2016-2024 were likewise discussed under Chapter 6, 7 and 8. The system study as well as SIS for proposed generation projects within the planning horizon has determined the project drivers for each project including those segments that are part of the transmission backbone and islands/grids interconnection, as shown in the above Table. For Major Island Interconnections, however, no dominant projects driver is deemed appropriate to trigger its implementation. In this sense, both the Batangas-Mindoro and Leyte-Mindanao Interconnection Projects would seem to require a strategic decision, which will deeply involve both the oversight and regulatory agencies of the government, hence these island interconnection projects fall under “Strategic Inteconnection”. Although, NGCP is conducting related studies, e.g., Techno-Economic Evaluation, Feasibility Study that includes System and Technical Studies, Economic, among others to support its rate application to secure approval of the ERC. Figure 9.2 shows the Existing and Future Philippine Network Topology of a unified grid.


Figure 9.1 - Transmission Backbones and Island Interconnections


Figure 9.2 - Existing and Future Philippine Network Topology

OHTL – Overhead Transmission Line, Sub. Cable – Submarine Cable, UGC – Underground Cable and N-1 – Single Outage Contingency.

Samar Island

Leyte Island

Bohol Island

Cebu Island

90 MW (1989) 180 MW (2019)

138 kV OHTL (with N-1)

Panay Island

Negros Island

90 MW (2004)

90 MW (2022) 138 kV OHTL

and Sub. Cable

185 MW (1997)

185 MW (2005)

230 kV OHTL and Sub. Cable

440 MW (1998) – Monopolar

440 MW (Future) – Bipolar

±350 kV HVDC Leyte-Luzon Int.

OHTL and Sub. Cable

MINDANAO

450 MW (2018)

450 MW (Future) ±350 kV HVDC LMIP

OHTL and Sub. Cable

(Bipolar)

VISAYAS

90 MW (1993) 90 MW (2007)

138 kV OHTL and Sub. Cable 400 MW (Future)

230 kV OHTL and Sub. Cable

Boracay Island

85 MW (1990) 138kV OHTL and

Sub. Cable 240/400MW

(2016/Future) 230kV OHTL and

Sub. Cable

40 MW (2006) 69 kV OHTL and Sub. Cable

Mactan Is. (Lapu-lapu)

200 MW (2005)

138 kV XLPE

UGC / Sub. Cable 240 MW (2015)

230 kV OHTL and

Sub. Cable

Mindoro Island

300 MW (2023) 230 kV OHTL and Sub. Cable

300 MW (Future) HVDC or HVAC

OHTL and Sub. Cable

100 MW (Future)

138 kV XLPE HVAC

OHTL and Sub. Cable

LUZON


9.2.1 Batangas-Mindoro Interconnection Project (BMIP) Existing Power System: The power system of Mindoro Island, which is composed of 69 kV lines connected to several

power plants and various load-end substations, is presently being operated by Small Power Utilities Group (SPUG) of the National Power Corporation (NPC). Power distribution to the consumers is handled by Oriental Mindoro Electric Cooperative (ORMECO) and Occidental Mindoro Electric Cooperative (OMECO). The major load center is in Calapan City in Oriental Mindoro and the total peak demand in 2010 was about 40 MW, based on the combined total load of ORMECO and OMECO; and

Except for the 1.6 MW Dulangan Mini-Hydro, all of the existing power plants in Mindoro Island are diesel-based. In 2010, the aggregate installed capacity was 51.25 MW with dependable capacity totaling 45.20 MW. The bulk of dependable capacity of about 85% is under SPUG’s control (rented generators), while the remaining 15% is owned by Oriental Mindoro Electric Cooperative (ORMECO) and its Independent Power Producer (IPP).

Transmission Needs: There is a need to develop a more reliable power delivery system from the Luzon Grid to

Mindoro Island to meet its growing demand, which is projected to reach 60 MW in 2016 and 83 MW by 2020. The improvement in reliability of supply is expected to result in better economic growth as the island could attract more investors for industrial, commercial loads and for tourism industry;

In the initial stage, the proposed interconnection facility will only transmit power from Batangas 230 kV Substation in the main Luzon Grid up to the interconnection point in Calapan City. As such, due to the very long 69 kV radial line from Calapan City of San Jose at 253 km and from Calapan City to Roxas at 125 km, there is a need for some diesel generators to provide voltage regulation support for the island; and

In addition to the existing HVDC link between Luzon and Visayas Grids, the future 230 kV looping configuration from Mindoro to Panay islands will strengthen the grid, thus provide a more reliable operation. The loop will allow operational flexibility in exchange of power between Luzon and the Visayas even when the HVDC link will be on outage. Therefore, the project requires a maximum transfer capacity of 300 MW and will be complementary to Cebu-Negros-Panay 230 kV Backbone Project in the Visayas once the loop is in place.

Other Considerations: NGCP received Resolutions from the House of Representatives and Electric Cooperatives in

Mindoro requesting the immediate implementation of the Luzon-Mindoro Interconnection Project, which is now known as the BMIP. In the said Resolutions, power supply deficiency and unreliable power service in the island was highlighted due to the problems of SPUG which has been incurring heavy financial losses; and

The interconnection would make Mindoro Island as a viable location for new generating plants such as coal-fired and RE plants. In DOE’s Philippine Energy Plan(PEP 2007-2014), Mindoro was identified as one of the areas that contain significant coal deposits. The wind power and bio-fuels are the other energy resource potentials of the island. Thus, the potential for power export to mainland Luzon was also considered in the decision for the 300 MW maximum capacity.


Major Project Components: Batangas–Lobo CTS 230 kV T/L, ST-DC 1-795

MCM ACSR, 45 km; Lobo CTS-Mahal na Pangalan CTS 230 kV

Submarine Cable, 4-1000 mm2 XLPE, 25 km; Mahal na Pangalan CTS-Calapan 230 kV T/L,

ST-DC 1-795 MCM ACSR, 6 km; Batangas S/S Expansion: 1-138 kV PCB and

associated equipment; Lobo CTS: 3-230 kV PCB, 2-30 MVAR 230 kV

Shunt Reactors and associated protection equipment;

Mahal na Pangalan CTS: 3-230 kV PCB, 2-30 MVAR 230 kV Shunt Reactors and associated protection equipment; and

Calapan 230 kV S/S: 2-100 MVA, 230/69-13.8 kV Power Transformers, 7-230 kV PCB and 4-69 kV PCB and associated equipment and a 25 MVAR 230 kV Shunt Reactor.

9.2.3 Leyte-Mindanao Interconnection Project (LMIP) Existing Power Supply System The power supply in Mindanao is dominated by hydro with the 727 MW Agus Hydro complexes,

composed of six power plants cascading in the Agus River emanating from Lake Lanao to Iligan Bay, comprising 37% of the total installed capacity. This is augmented by the 225 MW Pulangi Hydroelectric Plant in North Central Mindanao. In 2011, about 55 % of the generated power in Mindanao comes from hydro power plants. The 108 MW Mt. Apo Geothermal Plant contributes 6% of the power requirement, while coal-fired plants contribute 13 % of the total dependable capacities. Oil-based plants located in various areas throughout the island, i.e., Diesel Power Plants in Zamboanga, Lanao, South Cotabato, Power Plant Barges in Davao and Agusan with a combined dependable capacity of 438 MW, supply the remaining 26%; and

The bulk of power generated is transmitted to the load centers in Davao provinces and SOCCSKSARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos), which are located in the southern part of Mindanao. The power demand in these two areas approximately accounts for about 50% of the island’s total demand, with the power flow generally from north to south. The bulk of power flows from the north through the Balo-I-

Tagoloan‐Maramag‐Kibawe 138 kV transmission corridor. This will be relieved once the entire Mindanao 230 kV Backbone, which will be initially energized at 138 kV, is completed/energized.

Existing Transmission and Subtransmission System:

The existing transmission and subtransmission system is discussed in sub-section 3.3.4.


Normal Condition without LMIP The period 2013-2014 are critical years for Mindanao Grid as the existing dependable capacity is

insufficient to meet the ever increasing demand. The power deficiency could be addressed once the committed two 100 MW generating units of Southern Mindanao Power Plant and two 150 MW Therma South Energy Power Plant are commissioned in the period 2014-2015. Under normal condition without the project scenario, the aggregate dependable capacity of 1,641 MW augmented by the CFPP targeted to be commissioned in the period 2014-2015 is already sufficient to meet the projected demand without additional investment in generation capacity addition. The total dependable capacity already includes the maximum aggregate dependable capacity from hydro power plants.

Long Dry Season without LMIP Under a long dry season (without the project) scenario, the total dependable capacity is reduced

from 1,641 MW to 1,472 MW. In the demand-supply analysis, the reduction in aggregate dependable capacity during summer months, i.e., January to June ranges from 169 MW to 693 MW. This decrease in dependable capacity increases the required generation capacity needed to meet the projected peak demand.

Considering the 500 MW CFPP targeted to be commissioned in the 2014-2015 period, the

required generation capacity addition in Mindanao Grid is about 427 MW in 2018, 719 MW in 2024 and around 896 MW by 2030.

Long Dry Season: Luzon + Visayas with Mindanao

The assumptions on dependable capacity for the demand-supply for Unified Grid were also adopted in this scenario. It shows that in an interconnected Luzon-Visayas and Mindanao, the 14,152 MW combined dependable capacity during normal condition will be reduced to 11,866 MW. This is attributed to the combined effect of 19 % and 50 % hydro in the generation mix in Luzon and Mindanao, respectively. The reduction in aggregate dependable capacity increases the required investment in generation capacity as the peak demand increases over the years.

The Overall Benefits of Visayas and Mindanao Grids Interconnection The tangible benefits in terms of reduced investments in power generation due to the

implementation of LMIP are due to the following: a) The sharing of system reserve; b) The lesser investment in power generation in Mindanao to maintain the one day Loss of

Load Probability (LOLP); and c) The reduction of operating cost due to economic dispatch of generators.

Intangible benefits in the implementation of LMIP:

a) The benefit that is difficult to be quantified in monetary terms includes the attractiveness of

LMIP to power generation investments due to the bigger market through an interconnected power network;


b) From a technical standpoint, LMIP will provide benefit to the system in terms of added supply security, improved system reliability and improvement in the quality of power supply; and

c) The optimized utilization of indigenous energy sources, such as natural gas in Luzon, geothermal in the Visayas and hydro in Mindanao. LMIP will reduce the overall generation of pollution as well as the dependency on the importation of fossils fuel, where its availability and price are sensitive to the price in the world market.

The implementation of LMIP will also complement the operation of the Wholesale Electricity Spot Market (WESM) in Mindanao. As a transition mechanism to the operation of the WESM, the Interim Mindanao Electricity Market (IMEM) commercial operations was launched in Davao City on September 20, 2013. The IMEM, which was developed by the government, is an interim solution to the region's power supply deficiency by ensuring the transparent and efficient utilization of all available power capacities in Mindanao Grid. Major Project Components: I Land Portion a) Overhead DC Transmission Lines:

Ormoc CS-Benit CTS ±350 kV HVDC OHTL, Bipolar, 3-795 MCM ACSR, 170 km; and Bilaa CTS-Villanueva CS ±350 kV HVDC OHTL, Bipolar, 3-795 MCM ACSR Condor, 285

km.

b) Electrode Lines/Stations: Villanueva–Balingasag 20 kV OHTL (2 Lines), 2-795 MCM ACSR Condor, 29 km; Balingasag Electrode Station; and Ormoc-Albuera 20 kV OHTL (2 lines), 2-795 MCM ACSR Condor, 23 km (existing); and Existing Albuera Electrode Station

c) Converter Stations (Conventional Bipolar):

Ormoc Converter Station: Thyristor Valves: 2-227.5 MW, 350 kV, 750 A, water cooled, air insulated, suspended, indoor

12-pulse single phase quadruple; Converter Transformers: 2-225 MW, 230 kV AC/350 kV DC, single phase and three -winding; Oil immersed DC Smoothing Reactor; 2 groups of double-tuning passive DC filters and 2

large groups with 4 small groups AC filters; DC Field Equipment including DC High-Speed Switches, Metallic Return Transfer Breaker,

Ground Return Transfer Switch, various DC Switches, DC Measuring equipment and wall bushings; and

Secondary System including Operator Control, AC/DC Station Control, Pole Control, DC Protection, Station Master Clock, Fault Recording, DC Line Fault Location, AC Protection, Revenue Metering, Auxiliary System, Management Subsystems of Relay Protection and Fault Information and Telecontrol and Telecommunication Equipment.

Villanueva Converter Station: Thyristor Valves: 2-227.5 MW, 350 kV, 750 A, water cooled, air insulated, suspended, indoor

12-pulse single phase quadruple; Converter Transformers: 2-225 MW, 230 kV AC/350 kV DC, single phase and three-winding;


Oil immersed DC Smoothing Reactor; 2 groups of double-tuning passive DC filters and 2 large groups with 4 small groups AC filters;

DC Field Equipment including DC High-Speed Switches, Metallic Return Transfer Breaker, Ground Return Transfer Switch, various DC Switches, DC Measuring equipment and wall bushings; and

Secondary System including Operator Control, AC/DC Station Control, Pole Control, DC Protection, Station Master Clock, Fault Recording, DC Line Fault Location, AC Protection, Revenue Metering, Auxiliary System, Management Subsystems of Relay Protection and Fault Information and Telecontrol and Telecommunication Equipment.

d) Substations:

Ormoc S/S Expansion: 6-230 kV PCB and associated equipment; and

Villanueva S/S Expansion: 2-300 MVA, 230/138-13.8 kV Power Transformers and accessories.

II Marine Portion

a) Benit CTS-Bilaa CTS, ±350 kV HVDC, Bipolar, 1,500 mm2 mass impregnated submarine cable, 22 km.

Other Feasibility/Planning and Conceptual Design-related activities and other information: Except for Converter Stations, which are already based on December 2013 conceptual design

prepared by HVDC Experts from State Grid Corporation of China (SGCC), all other major project components were based on System Study completed in January 2013 by China Electric Power Research Institute (CEPRI);

Likewise, a more detailed conceptual design for submarine cable will be firmed up or finalized upon the completion of hydrographic/marine survey, etc. to be completed in the 2nd Quarter of 2014. Inshore / landfall survey to select the best submarine cable landing area is still ongoing, thus, the result is not yet reflected in this TDP. The contract for hydrographic/marine survey was awarded to EGS (Asia) Inc., a Cebu-based Earth Sciences and Surveying company with regional hub in Hongkong for its business operations in South East Asia;

Stage 1 of the project, which is targeted in 2018 has a capacity of 1-225 MW per pole, hence the

total capacity of the conventional bipolar Converter Stations is 450 MW. While Stage 2 of the project, which will be in 2030 (per 2013 System Study) requires an additional 1-225 MW per pole, hence the ultimate capacity of the Converter Stations is 900 MW;

Both ±350 kV HVDC overhead lines and submarine cables will already be designed with an

ultimate or maximum power transfer capacity of 900 MW;

In a Conventional Bipolar Scheme, outage in one pole reduces the transfer capacity by half (or 50%). Unlike in an HVAC system, single outage (N-1) contingency is not considered due to sizeable amount involved (or it will not be economically viable); and

Alternative submarine cable routes, as shown in Figure 9.4, will be further evaluated considering

the overall cost and other issues/concerns.


Figure 9.4 – Alternative Submarine Cable Routes




CHAPTER 10: Appendices Appendix 1 – List of Official Site Names of Substations based on the Standard System of Site and Equipment Identification and Labelling (SEIL) – Rev. 4

A1.1 Luzon

A1.2 Visayas

NEW NAME OLD NAME TYPE

Bay New Makban 230 kV Substation

Bolo Kadampat EHV 500 kV Substation

Cawag Hanjin 230 kV Substation

Clark Clark (COC) 230 kV Substation

Doña Imelda Araneta 230 kV Substation

Las Piñas Zapote 230 kV Substation

Lumban Kalayaan EHV 500 kV Substation

Malamig Sta. Rosa 230 kV Substation

Marilao Duhat 230 kV Substation

Muntinlupa Sucat SS (Old/New) 230 kV Substation

Naga CS HVDC 350 kV Converter Station

Nagsaag San Manuel EHV 500 kV Substation

Quezon Balintawak 230 kV Substation

San Manuel San Manuel HV 230 kV Substation

San Rafael Cruz Na Daan 230 kV Substation

Taytay Dolores 230 kV Substation

NEW NAME OLD NAME TYPE

Allen Cabacungan 350 kV Cable Terminal Station

Barotac Viejo San Juan 138 kV Substation/ CTS

Borongan Cabong 69 kV Switching Station

C.P. Garcia Tugas 138 kV Substation

Calung-calung Talavera 138 kV Substation

Cebu Banilad (VECO) 138 kV Substation

Colon New Naga 138 kV Substation

Daan-Bantayan Talisay Visayas 230 kV Substation

E.B. Magalona Tomonton CTS/Sarabia CTS 138 kV Substation

Kananga Central Switching Station 230 kV Substation

Lapu-lapu Mactan GIS 138 kV Substation

Naga Old Naga 138 kV Substation

Ormoc CS HVDC-OCS 350 kV Converter Station

Paranas Wright 138 kV Substation

Samboan Suba CTS 138 kV Substation

San Fernando Taiheiyo 69 kV Substation

Sipalay Maricalum 69 kV Substation

Sta. Rita Bagolibas 138 kV Substation

Tagbilaran Dampas 69 kV Substation

Toledo Sigpit 138 kV Substation

Varotac Viejo San Juan 138 kV Substation / CTS


A1.3 Mindanao NEW NAME OLD NAME TYPE

Balo-i Abaga 138 kV Substation

Cagayan de Oro Carmen Mindanao 69 kV Substation

Gen. Santos Klinan 138 kV Substation

Iligan Overton 69 kV Substation

Ipil Pangi 69 kV Line Breaker

Jasaan Aplaya 138 kV Substation

Malaybalay Aglayan 69 kV Capacitor Bank Station

Nabunturan Tindalo 138 kV Substation

Naga Sta. Clara 138 kV Substation

Oroquieta Villaflor 69 kV Capacitor Bank Station

Placer Anislagan 138 kV Substation

Sultan Kudarat Nuling 138 kV Substation

Tumaga Lunzuran 69 kV Capacitor Bank Station

Villanueva Kirahon 138 kV Substation

Zamboanga Sangali 138 kV Substation


Appendix 2 – Grid Code Performance Standard

Majority of the projects in the TDP are intended to meet load growth and accommodate generation capacity addition. The assumptions are simplified on the type of loads due to uncertainty of the nature of loads that will be connected in the future. For this reason, all performance standard requirements could not all be addressed by the projects in the TDP but are hopefully addressed in the System Impact Study (while the customer is applying for a connection), by the System Operator (in real-time) or by the local Operation and Maintenance’s District Office. Table A2 summarizes the Grid Code requirements on power quality and how NGCP intends to satisfy them.

Table A2 Grid Code PQ Standards and the TDP

GRID CODE SECTION

REQUIREMENTS ADDRESSED

BY TDP? REMARKS

3.2.2 Frequency Variations

Partly

The ability of the TDP to address the constraints provides the adequate corridor for spinning reserves to be made available where it is needed, resulting in the balance between supply and demand. This is also addressed in real-time by the System Operator by securing sufficient load following, frequency regulation and spinning reserves.

3.2.3 Voltage Variations

Yes Please refer to Section A2.1 Voltage Variation

3.2.4 Harmonics

No

The reactive power compensation requirements for loads that generate harmonics are determined in the System Impact Study (SIS) that is conducted during the application of the customer for a connection. The provision for the power compensating equipment then becomes a pre-requisite for allowing the connection.

3.2.5 Voltage Unbalance

No For planning purposes, all loads and transmission lines are assumed to be balanced. Voltage unbalance will be dealt in real-time.

3.2.6 Voltage Fluctuation and Flicker Severity

No

The reactive power compensation requirements for loads that cause voltage fluctuation and flicker are determined in the SIS that is conducted during the application of the customer for a connection. The provision for the power compensating equipment then becomes a pre-requisite for allowing the connection.

3.2.7 Transient Voltage Variations

No Problems related to transient voltage variations are addressed in the design stage (for expansion projects).

3.3 Reliability Standards

Partly (projects for

N-1 provision)

Reliability Standards, as described in the Grid Code, are based on the total number and duration of sustained power interruption. Improvements in this aspect may be achieved not only through infrastructure projects but by some other means such as proper vegetation management, more systematic


GRID CODE SECTION

REQUIREMENTS ADDRESSED

BY TDP? REMARKS

and coordinated line restoration and strategic partnership with local citizenry in the maintenance and monitoring of the lines. All of these approaches have been tried to a certain degree on various areas with promising success.

3.4 System Loss Standards

Partly

This is partly addressed through voltage improvement projects. When economically viable, higher transmission voltage is used to transfer bulk power from generators to loads.

3.5 Safety Standards No

Safety standards requirements are factored-in in the design of the equipment/structure that eventually become part of the specification for the respective projects.

A2.1 Voltage Variation The Grid Code requires that the long duration voltage variations be greater than 95 percent but less than 105 percent of the nominal voltage at any connection point during normal conditions (Section 3.2.3.4). The approach used to satisfy this requirement is to improve the voltage at the substations using capacitors and reactors (for inclusion in the TDP) so that it falls within this range, after the transformer taps have been adjusted and reached its limit. Generator terminal voltages are set at 1 per unit (p.u.) and MVAR output is allowed to vary according to the requirements of the Grid Code. A2.2 System Loss Standard The system loss of the transmission system is highly dependent on the generation dispatch. If generating plants output farthest from the load centers are maximized, higher system loss is expected. Without any transmission constraints, the dispatch pattern is not within NGCP’s control but is dictated by the transactions between the generators and the load customers. It follows, therefore, that system loss is not within NGCP’s full control.

The following are the possible solutions to reduce system loss and some issues in implementing them:

a. Uprating of the existing transmission line. This can be done through the use of conductors with larger diameter (and therefore higher capacity) or similar weight conductors but with higher capacity (such as TACSR). Larger but more expensive conductors translate to smaller resistance. Larger diameter conductors, although have larger transfer capacity, would require stronger and hence, more expensive support structures, such as steel towers/poles. The more expensive Thermal ACSR, on the other hand, are similar in weight but with higher capacity. However, the higher capacity runs the risk of being optimized down in accordance with ERC’s RTWR resulting in under-recovery of investment.

b. Use of higher voltages in power transmission that would require a relatively bigger CAPEX to implement. The NGCP will implement this strategy whenever the entry of very large generators or extension of an existing backbone transmission system that makes it economically feasible.


c. Improvement of voltage profile. There are projects lined-up to improve the voltages at various substations through the installation of capacitor banks and shunt reactors. In bringing the bus voltage to an acceptable level prescribed by the Grid Code would also lead to some extent in the reduction in system loss.

For benchmarking purposes, system loss cannot be compared with that of other countries because the dispatch pattern, system configuration, locations of generation sources/loads and voltage levels are not the same. A2.3 Performance Indices There are currently eight (8) performance indices under the Performance Incentive Scheme (PIS), one of the main features in the Performance-Based Ratemaking (PBR).

a. System Interruption Severity Index (SISI); b. Frequency Limit Compliance (FLC); c. Voltage Limit Compliance (VLC); d. Frequency of Trippings per 100 ckt-km (FOT/100 ckt-km); e. System Availability (SA); f. Congestion Availability (ConA); g. Ancillary Services Availability Indicator (ASAI); and h. Customer Satisfaction Indicator (CSI).

Generally, two different approaches are being used for improved performance. The first approach is through infrastructure additions to attain adequacy and ideally, N-1 security. The second approach would be through improved maintenance strategy and quick restoration during outages.

At the transmission level, there are still areas served with no provision for N-1 contingency. i.e., there is only a single line supplying the area. There are projects in the TDP which will specifically address this reliability concern.


Appendix 3 – DOE List of Prospective Power Plants

Proposed Generation Facility Capacity (MW) Location

LUZON

Alaminos Solar 40 - 50 Alaminos, Pangasinan

Aboitiz Power Barge (Units 1/ 2/ 3/ 4) 66 / 67/ 57 / 52 Navotas

Ballesteros-Abulog-Aparri Wind 80 Cagayan

Bayog Wind Power 90 Brgy. Bayog, Burgos, Ilocos Norte

Bell Ocean Thermal 10 Cabangan, Zambales

Buduan Wind Power 44 Brgy. Bayog, Burgos, Ilocos Norte

Calamba Combined Cycle 120 - 170 Calamba, Laguna

Diduyon Hydro 320 Quirino Province

E-Power Hydro 8.1 Nueva Vizcaya

EWC Combined Cycle 300 Pagbilao, Quezon

FDC Coal 15 Minalabac, Camarines Sur

First Gen Liquid Fuel 1000 Batangas City

First Gen Mid Merit Power 300 Batangas

FMIC Wind 50 Sanchez Mira, Cagayan

Green Power Biomass 30 Barangay Maraburab, Alcala, Cagayan

Green Power Nueva Ecija 17.5 Nueva Ecija

Isabela Coal 100 Isabela Province

Kanan Hydro 150 Nakar, Quezon

Kapangan Mini Hydro 50 Kapangan Benguet

KBHPC Enodey Abit (Units 1/ 2/ 3) 2 / 1.2 / 2 Bauko, Mountain Province

KEGI Diesel Power Plant 10.6 Brgy. San Luis, Guinoog City

Lake Mainit Hydropower 25 Agusan del Norte

LEC Clean Coal Fired Boiler 140 Limay, Bataan

Limabatangon Mini-Hydro 9 Cagayan de Oro City

Man-Asok-Agno Mini Hydro 3 Buguias, Benguet

Pagbilao Expansion 420 Quezon

Pangea Biomass 1.2 Payatas, Quezon City

Pantabangan PSPP 600 Pantabangan, Nueva Ecija

Pillila Wind 90 Pillila, Rizal

Pinacanauan de Ilaguen Run-of-River 19 San Mariano, Isabela

Sabangan Hydro 13.20 Sabangan, Mt. Province

Sagada-Besao Wind 15 Mountain Province

SMC Global Bulacan Coal 600 Bulacan

SMC Global Cavite Coal 1200 Cavite

Sta. Rita Solar 100 Subic Bay Freeport Zone

Sta.Clara Tinoc Hydro (Units 1/2/3/4) 3 / 6.5 / 5 / 10 Tinoc, Ifugao

Sual Coal-Fired Thermal Power Pant 382 Pangasinan


Proposed Generation Facility Capacity (MW) Location

VISAYAS

Amlan Plant A/ B/ C 3.2/ 1.8/ 0.8 Amlan, Negros Oriental

FDC Coal 170 Sipalay, Negros Occidental

First Negros Diesel 12 / 11.2 Cadiz City

First Negros Thermal 30 / 50 Cadiz City

First Samar Diesel (FSDPP) 8 Cadiz City Port

First Negros Solar 49.8 Cadiz City, Negros Occidental

First Negros Hydro 1.68 Cadiz City, Negros Occidental

Guinobaan Hydro 7 Guihulngan, Negros Or

Lide Pasar Coal 200 Isabel, Leyte

Lower Himogaan Hydro 4 City of Sagay, Negros Occidental

Malogo Mini-Hydro 6 Silay City, Negros Occidental

Okoy Hydro 4.3 Valencia, Negros Oriental

Pacuan Hydro 6.8 Libertad, Negros Oriental

Siaton Hydro 5.4 Siaton, Negros Oriental

SMC Global Leyte Coal 600 Leyte

SMC Global Panay Coal 150 Panay

Sta.Clara Ubay 50 Bohol

Sta. Clara Cadiz 50 Negros Occidental

YOUIL Solar 30-60 Negros Occidental

MINDANAO

Clarin Run-of-River Mini Hydro 6.9 Clarin, Misamis Oriental

Laguindingan Solar 30-40 Misamis Oriental

Mat-I Mini Hydro 4.85 Claveria, Misamis Oriental

Navotas Gas 100 Davao del Sur

Oriental Energy Run-of-the-River Mini Hydro

10 Manolo Fortich, Bukidnon

Power Barge Mobile 3/ 4 66/ 67 Nasipit, Agusan del Norte

Simod Hydro 11.80 Simod, Kitaotao, Bukidnon

Sita Hydro 16.40 Kipilas, Kitaotao, Bukidnon

South Cotabato Coal 150 South Cotabato

Sta. Clara Davao Project 100 Davao

Sta. Clara General Santos City Project 100 General Santos


Appendix 4 – Renewable Energy NGCP allocates this section for the development and plans associated with the entry of Renewable Energy. Discussed are the background of RE development in Philippines, RE Projects from the DOE, transmission planning with RE and the activities of NGCP in support to RE. A4.1 RE Development in the Philippines The Philippines joined the global effort of mitigating climate change and global warming when the Philippine Senate ratified the Kyoto Protocol in 2003. Following that ratification, two (2) laws directly in conformity with the Kyoto Protocol were enacted: Republic Act 9367 or the Biofuels Act of 2006 and the RE Act of 2008. These laws were passed not only to combat global warming but at the same time promote development of RE in the country. The RE Act of 2008 is the first among the legislations enacted to harmonize RE development policies. It aims to promote the development, utilization and commercialization of RE resources and for other purposes. Prior to 2008, the RE-related laws and policies may be considered piecemeal in approach. Examples of these enactments were Presidential Decree 1442 or the Geothermal Law (1978), RA 7156 or the Mini-hydro Law (1991), Executive Order 462 or the Ocean Solar and Wind Law (1997) and Executive Order 232 or the Amended Ocean Solar and Wind Law. With the RE Act of 2008, the incentives and mechanisms for RE became more coordinated and comprehensive covering the various RE technologies. The requirements for NGCP, as the successor-in-interest of TransCo, as provided under RE Act of 2008 are summarized in Table A4.1.


Table A4.1 Requirements for NGCP under RE Act of 2008

Development Mechanism

Particulars

Green Energy Option

Section 9 Consistent herewith, TRANSCO or its successors-in-interest, DUs, PEMC and all relevant parties are hereby mandated to provide the mechanisms for the physical connection and commercial arrangements necessary to ensure the success of the Green Energy Option. The end-user who will enroll under the energy option program should be informed by way of its monthly electric bill, how much of its monthly energy consumption and generation charge is provided by RE facilities.

Net metering Option

Section 10

The DOE, ERC, TRANSCO or its successors-in-interest, DUs, PEMC and all relevant parties are hereby mandated to provide the mechanisms for the physical connection and commercial arrangements necessary to ensure the success of the Net-metering for Renewable Energy program, consistent with the Grid and Distribution Codes.

Transmission and Distribution System Development

Section 11

TRANSCO or its successors-in-interest or its buyer/concessionaire and all DUs, shall include the required connection facilities for RE-based power facilities in the Transmission and Distribution Development Plans, provided that such facilities are approved by the DOE. The connection facilities of RE power plants, including the extension of transmission and distribution lines, shall be subject only to ancillary services covering such connections.

Intermittent RE Resources

Section 20

TRANSCO or its successors-in-interest, in consultation with stakeholders, shall determine the maximum penetration limit of the Intermittent RE-based power plants to the Grid, through technical and economic analysis. Qualified and registered RE generating units with intermittent RE resources shall be considered “must dispatch” based on available energy and shall enjoy the benefit of priority dispatch. All provisions under the WESM Rules, Distribution and Grid Codes which do not allow “must dispatch” status for intermittent RE resources shall be deemed amended or modified. The PEMC and TRANSCO or its successors-in-interest shall implement technical mitigation and improvements in the system in order to ensure safety and reliability of electricity transmission.

Additional requirements under the Feed-In Tariff (FIT) and RPS mechanisms are contained in their respective rules. The FIT rules were approved on 12 July 2010 and was revised on 19 November 2012.


A4.2 RE Resources The Philippines is rich in RE resources. According to DOE2, almost 260 GW in capacity is available for exploitation:

a. Geothermal Resource : 2,600 MW b. Hydropower: 13,097 MW

Large and Small Hydro: 11,223 MW (85%)

Mini-hydro: 1,847 MW (14%)

Micro-hydro: 27 MW (1%) c. Wind resources: 70,000 MW d. Solar Energy: untapped vast potential as a tropical country (5.1 kWh/m2 / day) e. Ocean Energy: 170,000 MW f. Biomass: untapped vast potentials (323.1 MMBFOE)

As of May 2013, RE comprised 30% of the dependable generation mix and the remaining percentage from fossil fuel.3 By 2030 the government intends to triple the existing 5,438 MW RE installed capacity4. The Philippines is also a pioneer in RE development. It is the world’s second largest producer of geothermal energy, after the US, and the first in Southeast Asia to deploy large scale wind and solar technologies. NorthWind Power’s 33 MW wind farm and the CEPALCO’s 1 MW solar photovoltaic (PV) plant are the largest in the region. The National Renewable Energy Program (NREP) of the DOE for 2011-2030 lists the RE-based installation target capacity addition as summarized in Table A4.2 (a).

Table A4.2 (a) RE Capacity Addition

*Image taken from the National Renewable Energy Program (2011-2030)

For the purposes of FIT mechanism, the DOE approved in June 2011 the installation targets for the next three years for the RE technologies entitled to FIT with a total of 760 MW divided among RE types. Subsequently, the ERC approved in July 2012 the FIT Rates. Table A4.2 (b) shows the

2 DOE website: www.doe.gov.ph/ER/Renenergy.htm

3 DOE list of Existing Plants as of May 2013

4 Renewable Energy Plans and Programs (2011-2030)


installation targets for FIT eligible RE technologies with the corresponding FIT rate as well as how much capacity is included in the TDP.

Table A4.2 (b) Installation Targets for FIT Eligible RE Technologies

Likewise, as of 31 December 2013, the total awarded projects of the DOE totalled to 6,065 MW for which only 2,330 MW has been installed, as shown in Table A4.2(c)

Table A4.2(c) Awarded Projects under Renewable Energy (RE) Law

RESOURCES AWARDED PROJECTS POTENTIAL CAPACITY MW INSTALLED CAPACITY MW

Grid-Use Own-Use Grid-Use Own-Use Grid-Use Own-Use

Hydro Power 264 1 3,861.12 1.50 131.22

Ocean Energy 7 25.00

Geothermal 42 870.00 1,847.69

Wind 40 1 1,887.50 0.006 33.00

Solar 56 5 1,012.21 1.594

Biomass 39 24 256.40 33.30 154.95 172.18

Sub-Total 448 31 7,912.23 36.40 2,166.86 172.18

TOTAL 479 7,948.63 2,339.04

A4.3 Transmission Planning for RE: Philippine Scenario In developing transmission expansion plans for the grid, every project included in the TDP is evaluated to meet the following objectives:

a. Ensure the reliability and stability of the grid b. Grid demand requirements are met by available supply c. Minimize the cost of transmission investments passed-through to end-consumers d. Minimize the cost of energy by providing more opportunities for competition and mitigating

market congestions The RE Act of 2008 further highlights these objectives. The load variations to be introduced by intermittent RE resources such as wind farms and solar PV systems will pose new challenges in ensuring the reliability and stability of the grid. Accommodating RE resources which will require network investments has to be balanced with the aim of minimizing impact on end-consumers. Investments on transmission network must be implemented in a timely manner to support what is envisioned in the RE Act of 2008. As these new considerations are brought to the fore, new policies and regulations that will guide the stakeholders must also be established. The RE Act of 2008 provisions relating to the associated transmission and connection facilities for RE are in themselves not self-executing. The RE Act provides that the ERC shall formulate and promulgate FIT system which shall include priority connections for RE sources. In 2010, the ERC issued Resolution No. 16 which establishes the FIT system and regulates the method of establishing and approving the FIT and the Feed-In-Tariff Allowance (FIT-All).

TECHNOLOGY CAPACITY FIT-RATE (Php/kWh)

CAPACITY INCLUDED IN TDP

Run-of-river hydro 250 MW 5.90 149.1 MW

Biomass 250 MW 6.63 107.5 MW

Solar PV 50 MW 9.68 115 MW

Wind 200 MW 8.53 651.5 MW

Ocean 10 MW none


Section 2.7 of Resolution 16 allows eligible RE plants to “enjoy priority connection to the transmission or distribution system, as the case may be, subject to their compliance with the pertinent standards and ERC rules governing such connection.” Connections are governed by ERC-issued policies on asset boundary and various rulings. Transmission investments should conform to the Rules for Setting Transmission Wheeling Rates and the principles contained therein, the optimization principle among one of them. With the expected growth of the RE industry, the required mechanism and strategies that will guide NGCP and RE developers must be in place soon. Identification of the overhead transmission line routes needed in the long term as identified in the TDP and PDP is necessary to be reserved and acquired before open spaces become unavailable due to rapid urbanization. A4.4 Activities by NGCP Considering the installation targets of the DOE, NGCP is preparing for the bulk entry of variable renewable energy (VRE), which are considered as “must dispatch” under the RE Law. These VREs are location specific, naturally difficult to precisely predict the availability of the resource making it thereby the energy generated variable, unpredictable and irregular and the availability is inherently uncontrollable. These power plants utilize wind, solar, run-of-river hydro or ocean energy. Based from international experience and research, wind farms and solar PV poses distinctive challenges to the operation and planning of the network at significant amounts of integration. With this, NGCP is focused on the integration of wind farms and solar PVs to the grid. With reference to the NREP of the DOE in which more than 2,000 MW installed capacity targeted to be commissioned by 2030, NGCP is working to address the challenges in integrating these VREs to the grid. These challenges include: establishment of required transmission facilities, technical and operational performance, and variability of power generation. To be capable of handling various challenges with the integration of RE into the grid, NGCP sends its personnel to comprehensive and rigorous trainings locally and abroad to ensure that it acquires the expertise, thus competent to adapt and convey the technologies that will power the country’s future. It actively participates in workshops structured by the DOE-GIZ, World Bank, Siemens, Vestas, Centre for Wind Energy Technology in India and other groups pursuing the development RE. NGCP also strives to further keep up with its commitment to provide reliable power transmission service through its efforts in preparing the Grid Connection Requirements (GCR) for RE, for wind farms and solar PV systems in particular. With the proposed GCR, NGCP is hopeful that provisions for integration of RE into the transmission network will be incorporated to the amended Philippine Grid Code (PGC). In February 2013, the addendum to the PGC which contains the provision for VRE, particularly wind farms and solar PV, was approved by the ERC. It contains the much needed requirements for VRE with respect to the grid connection, planning and operation. In addition to the long-term concerns associated with transmission expansion planning, NGCP also has to resolve the short-term planning issues associated with the entry of RE power plants. These issues include, among others, the provision of ancillary services to manage the net variability of the grid. To resolve these, NGCP conducts studies, specifically the Renewable Energy Integration Study (REIS), to determine the maximum penetration limit of VRE to ensure safety and reliability of electricity transmission under the RE Law. The primary goal of this study is to analyze the impact of


integrating VRE to the demand-supply balance of the grid by comparing the net variability of the system with the availability of regulating reserves. Finally, NGCP ensures close and active participation with the different power industry stakeholders as they formulate additional rules to accommodate the entry of these RE resources. NGCP also guarantee its commitment to continuous research and studies to ensure the safety and security of the grid.


Appendix 5 – Climate Change Adaptation Measures in the 2013 Transmission Development Plan

NGCP supports the seven Strategic Action Plans under the National Climate Change Action Plan (NCCAP) formulated by the Climate Change Commission (CCC). Specifically, NCCAP “Strategic Actions on Sustainable Energy for 2011 to 2018”, highlights the following facts:

a) The Philippines is facing formidable challenge of developing sustainable clean energy options to support the requirements of economic and social development with minimal adverse effects on the environment;

b) The country continues to rely on importation to meet energy demand. Based on the 2010 DOE data, the country imports an average of 300,000 barrels per day of crude oil and petroleum products and more than three quarters of its coal consumption;

c) The country’s total energy sufficiency, however, has been increasing from 48 % in 2001 to

59% in 2009 due to the increase in renewable energy production; and

d) Environmental sustainability and energy security are the twin energy challenges caused by the country’s economic growth and rapid urbanization. The energy sector is a major source of greenhouse gas emissions, whereas the transport and electricity generation are the biggest Green House Gas (GHG) emitters.

The NCCAP further emphasized that “the energy sector has to respond to significant changes in demand due to fluctuation in temperature and weather condition to ensure that energy systems are able to adapt to the impacts of climate change”. Climate-proofing and rehabilitation of energy systems infrastructures is one of the four priorities identified to address the climate change issues of the energy sector. In the Transmission Sector, considering the economic lives5 of transmission infrastructures being implemented by NGCP, the following are the details of climate change adaptation initiatives in support to the NCCAP:

a) The maximum wind velocity design of overhead transmission lines’ (OHTL) support structures is based on three wind zones: Zone 1 (270 kph), Zone 2 (240 kph) and Zone 3 (160 kph). The areas under a particular wind zone are shown in Table A1 of Appendix A, 2008 Philippine Electrical Code (PEC) Part 2. In view of the increasing frequency of super typhoons that hit various areas in the country in the past decade, NGCP will be increasing the maximum velocity design of support structures for all OHTL including substation take-off towers and other support structures;

b) In the transmission line route selection process, careful evaluation are undertaken to avoid areas prone to flood, with steep slopes prone to soil erosions, and with sufficient distance from fishponds, rivers, lakes, swamps and seashores; and

5 Under the Performance-Based Regulation (PBR), the economic lives of transmission assets ranges from 15 to

50 years (depending on the type of assets, e.g., transmission lines, substations, protection and communication facilities, etc.)


c) For substation sites, the risk of flood or flash flood are carefully assessed, while avoiding areas that are considered possible sources of pollutions, e,g., industrial plant/buildings that generate polluted gases, storage areas for explosive or inflammable materials, bulk oil storage tanks and oil/gas pipelines. If necessary, close proximity to seashores are also avoided to prevent or minimize corrosions and depletion or failure of insulations of substation equipment.

Furthermore, NGCP selects overhead transmission line route and substation site that has minimal effect on human settlement or as much as possible, minimize the removal of vegetation or cutting of trees.


Appendix 6 – Existing Island Interconnection In 2005, two major interconnection projects were completed: the Leyte-Cebu Upgrading (additional 185 MW) and the Cebu-Mactan Interconnection (200 MW). In February 2007, the Cebu-Negros Interconnection Uprating was completed, providing an additional 180 MW capacity between the islands.

Figure 10.1 - Existing Island Interconnection


Appendix 7 – Ideal Locations of Power Plants To serve as a guide for generation investors, this section identifies the substations where new

power plants may connect without the need for any significant transmission reinforcement. These

recommended connection points, however, should be viewed from a transmission planning

perspective and are based on the capability of the existing grid and already considering the

completion of ERC-approved projects for the 3rd Regulatory Period and without consideration on

the following other requirements in generation location siting, particularly for the non-site specific

plants: (a) fuel supply/transport; (b) topology/geology of site; (c) accessibility; (d) availability of

area; (e) availability of cooling water; (f) fresh water supply; (g) security; and (h)

environmental/social concerns.

Figure 10.2 - Ideal Locations of Power Plants in Luzon


Figure 10.3 - Ideal Locations of Power Plants in the Visayas

Figure 10.4 - Ideal Locations of Power Plants in Mindanao


Appendix 8 – Residual Substransmission Assets (ANNEX “A” of ERC Resolution No. 04, Series of 2013)

RSTAs (Connecting two or more DUs) with ongoing negotiations

ITEM Assets DUs Connected

1 EPZA-Mariveles* PENELCO and EPZA

2 Tuguegarao-Tabuk 69 kV line* CAGELCO I and KAELCO

3 Balogo substation equipment switchbay 69kV indoor CB feeder SORECO I and SORECO II

4 Limay-PEZA PENELCO and PEZA

5

Batangas-Bolbok-CIP 69kV line*

MERALCO and FIRST BAY

Batangas S/S 69 kV Termination (58BS12) 69 kV Power Circuit Breaker (58BS12) Switchbay 13.8 kV single CB bay with 1 breaker feeder Switchbay 13.8 kV single CB bay with 1 breaker feeder protection

Bolbok-Bauan 13.8 kV line

Bolbok Substation Equipment Site Establishment 10 MVA 69/13.8 kV, 3Phase Transformer 1 13.8 kV Insulated Switchgear Switchbay 13.8 kV indoor CB bay with 1 breaker feeder Switchbay 13.8 kV indoor CB bay with 1 breaker feeder protection

6

Batangas-Mabini-Cuenca 69kV line

MERALCO, FIRST BAY and BATELEC II

Batangas S/S 69 kV Termination (57BS8) 69 kV Power Circuit Breaker (57BS8) Switchbay 13.8 kV single CB bay with 1 breaker feeder Switchbay 13.8 kV single CB bay with 1 breaker feeder protection

7 Lugait-Carmen 69 kV MORESCO I and CEPALCO

8 Batangas-Ibaan-Rosario 69 kV line* Batangas S/S 69 kV Termination (54BS4)

MERALCO and IEEC

9

Compostela-Consolacion 69kV (Portion 2)*

CEBECO II and VECO

Compostela S/S 69 kV Equipment 1-50 MVA 138/69/13.8 kV Transformer 1-50 MVA 138/69/13.8 kV Transformer 4-69 kV Power Circuit Breaker 18-69 kV Current Transformer 9-69 kV Potential Transformer 2-SwBay 69 kV single CB bay with 1 breaker, b section protection 2-SwBay 69 kV single CB bay with 1 breaker, b section 2-SwBay 69 kV single CB bay with 1 breaker, feeder protection 2-SwBay 69 kV single CB bay with 1 breaker, feeder 1-SwBay 69 kV single CB bay with 1 breaker, feeder 1-SwBay 69 kV single CB bay with 1 breaker, feeder protection Site Establishment Type 4-69

10 Bacolod-San Enrique 69 kV line NOCECO and CENECO

11 Talisay-VMC 69 kV CENECO and VRESCO

12

Calung-Calung S/S equipment Transformer-two winding 30 MVA 1-69 kV Power Circuit Breaker 3-69 kV Current Transformer 3-69 kV Potential Transformer Switchbay 13.8 kV single CB bay with 1 CB feeder Switchbay 13.8 kV single CB bay with 1 CB protection

BEZ and CEBECO III

Talavera-Asturias 69 kV line



13

Aplaya-Solana (Jasaan) 69 kV line* Jasaan-Balingasag (17 km remaining portion)

CAMELCO and MORESCO II

Aplaya S/S 52 AP4 Breaker*

14 Bingcunga-Madaum DANECO and DLPC

15 Naguilian-Reina Mercedes ISELCO I and II

16 Santiago-Aglipay ISELCO I and QUIRELCO

17 San Esteban-Batong Buhay ABRECO and ISECO

18 Mexico-Clark line I and line II* AEC, PELCO I, PELCO II and PRESCO

19

Naga 69 kV S/S Equipment 2-50 MVA 138/69/13.8 kV Transformer 9-69 kV Power Circuit Breaker 39-69 kV Current Transformer 7-Voltage Transformer 3-SwBay 69 kV 1 ½ bay with 3 breaker 3-SwBay 69 kV 1 ½ bay with 3 breaker, protection 2-SwBay 138 kV single CB bay with 0 breaker, transf 2-SwBay 138 kV single CB bay with 0 breaker, transf protection Site Establishment type 3-69

VECO and CEBECO I

20

Tolosa-Mabuhay Milagro-Tunga Sogod-St. Bernard Sogod Maasin Tunga Palo Mabuhay-Sogod Milagro-LEYECO V Milagro-Ormoc Tam-is-Maasin Tongonan-Tunga 69 kV line

LEYECO I, LEYECO II, LEYECO III, LEYECO IV, LEYECO V, BILECO and SOLECO

21 Molave-Polanco* ZANECO and ZAMSURECO II

22 Maco-Mati 69 kV line DORECO and DANECO


RSTAs (connecting two or more DUs) with pending approval with the Commission


1 Botolan-Castillejos ZAMECO I and ZAMECO II

2

Tuguegarao-Alcala 69 kV line (Str 1-236) Alcala-Magapit-Camalaniugan (Str 237-568) Magapit-Sta. Teresita Sta. Teresita-Sta. Ana

CAGELCO I and CAGELCO II

4 Mangaldan-Manaoag 69 kV line DENCORP and CENPELCO

5 Mactan LoadEnd S/S-GIS 69 kV TMX/STR #20-MEPZ LoadEnd S/S 69 kV MECO S/S #1-MECO S/S #3 69 kV

MECO and MEZ

6 Lemon-Biliran 69 kV line LEYECO V and BILECO

7 Isabel-Philphos 138 kV line 1&2 Isabel-PASAR 138 kV line 1&2 Isabel Substation 69 kV Switchbay

LEYECO V and PEZA

8 Davao-Digos 69 kV DASURECO and DLPC

9 Bingcungan-Tagum 69 kV DANECO and DLPC

10 Aurora-Ozamis 69 kV line MOELCI I and MOELCI II

11

Batangas-Fortune-PFM 69 kV line* Batangas S/S 69 kV Termination (59BS12) Makban-Calamba 69 kV line protection (Makban side) Sto. Tomas-Tanauan 69 kV T/L Makban S/S 69 kV Termination (56BM4)

MERALCO and BATELEC II

12 Tagoloan (Natumulan)-BUSECO Kibawe-Maramag-Aglayan Maramag-Pulangi Lateral

FIBECO and BUSECO

13 Dasmarinas-Abubot-Rosario 115 kV line Rosario substation equipment

MERALCO and CEZ

*Originally excluded from NGCP’s RAB in the 3rd Regulatory Period Final Determination


Appendix 9 – Grid Development Map The maps shown below are intended to give an overview of the long-term blueprint for the transmission expansion and upgrading for Luzon, the Visayas and Mindanao. The key inputs in this long-term plan consist of the projected demand forecast and the generation capacity expansion program adopted from the DOE with the vision of having a unified grid.

Figure 10.5 Long-term Grid Development Plan

1 Northern Luzon 230 kV

Backbone

2

Western Luzon 500 kV

Backbone

3

Metro Manila 500 kV

Backbone Loop

4

Batangas-Mindoro Interconnection

5Cebu-Negros-Panay

230 kV Backbone

6

Leyte-Mindanao Interconnection

7

Energization of Mindanao

Backbone to 230 kV


Aligned with the long-term development plan, it is foreseen that the projects listed in Figure 10.6 will be completed by 2023. However, the implementations of these projects which are segments of backbone transmission systems, are subject to ERC approval.

Figure 10.6 Grid Development Plan by 2023

Northern Luzon 230 kV Backbone Tuguegarao – (La-lo) Magapit

230 kV T/L

1

Western Luzon 500 kV Backbone -Hermosa-Castillejos 500 kV T/L

2

Metro Manila 500 kV Backbone Loop Baras (Antipolo) 500 kV S/S Baras (Antipolo)-Taguig 500 kV T/L

(initially energized at 230 kV) Dasmariñas-Taguig 500 kV T/L

3

Batangas-Mindoro Interconnection

4

Cebu-Negros-Panay 230 kV Backbone Cebu-Negros-Panay 230 kV

Backbone (Stage 1) Cebu-Negros-Panay 230 kV

Backbone (Stage 2)

5

Leyte-Mindanao Interconnection

6

7

Energization of Mindanao

Backbone to 230 kV

Legend: For Completion within 4

th

RP (2016-2020) For Completion beyond

4th RP


Appendix 10 – Abbreviations and Acronyms Development Plans:

DDP NREP

Distribution Development Plan National Renewable Energy Program

PDP Power Development Program

PEP Philippine Energy Plan

TDP Transmission Development Plan

TMP Transmission Master Plan

Electric Cooperatives:

ABRECO Abra Electric Cooperative

AKELCO Aklan Electric Cooperative

ALECO Albay Electric Cooperative

BENECO Benguet Electric Cooperative

BUSECO Bukidnon Electric Cooperative

CAPELCO Capiz Electric Cooperative

CASURECO Camarines Sur Electric Cooperative

CENECO Central Negros Electric Cooperative

DORELCO Don Orestes Romuladez Elect Cooperative

FIBECO First Bukidnon Electric Cooperative

GUIMELCO Gimaras Electric Cooperative

ILECO Iloilo Electric Cooperative

INEC Ilocos Norte Electric Cooperative

ISECO Ilocos Sur Electric Cooperative

ISELCO Isabela Electric Cooperative

LANECO Lanao Electric Cooperative

LEYECO Leyte Electric Cooperative

MOPRECO Mountain Province Electric Cooperative

MORESCO Misamis Oriental Electric Cooperative

NOCECO Negros Occidental Electric Cooperative

NORECO Negros Oriental Electric Cooperative

NORSAMELCO Northern Samar Electric Cooperative

OMECO Occidental Mindoro Electric Cooperative

ORMECO Oriental Mindoro Electric Cooperative

PELCO Pampanga Electric Cooperative

SAMELCO Samar Electric Cooperative

SOLECO Southern Leyte Electric Cooperative

SORECO Sorsogon Electric Cooperative

SURSECO Surigao del Sur Electric Cooperative

SURNECO Surigao del Norte Electric Cooperative


VRESCO VMC Rural Electric Cooperative

Electricity Market:

IMEM Interim Mindanao Electricity Market

PEMC Philippine Electricity Market Corporation

WESM Wholesale Electricity Spot Market

Government Oversight/Regulatory Agencies:

ERC Energy Regulatory Commission

DOE Department of Energy

GMC Grid Management Committee

NEDA National Economic & Development Authority

PSALM Power Sector Assets & Liabilities Management

TRANSCO National Transmission Corporation

Legal, Environmental and Other Requirements:

CCAP Climate Change Action Plan

CCC Climate Change Commission

EPIRA Electric Power Industry Reform Act

IMS Integrated Management System

OSHAS Occupational Health & Safety

PGC Philippine Grid Code

QMS Quality Management System

RE Law Renewable Energy Law

Power Generating Companies:

CEDC Cebu Energy Development Corporation

GN Power General Nakar Power

FGHPC First Gen Hydro Power Corporation

KEPCO Korea Electric Power Corporation

KSPC KEPCO SPC Power Corporation

MAEC Mirae Asia Power Corporation

PCPC Palm Concepcion Power Corporation

PEDC Panay Energy Development Corporation

QPPL Quezon Power Philippines Limited

RP Energy Redondo Peninsula Energy

SMCPC San Miguel Consolidated Power Corporation

TAREC Trans-Asia Renewable Energy Corporation


Power Plants:

CCPP Combined Cycle Power Plant

CFPP Coal-Fired Power Plant

DPP Diesel Power Plant

GPP Geothermal Power Plant

HEPP Hydro Electric Plant

LNG Liquified Natural Gas

NGPP Natural Gas Power Plant

RE Solar PV

Renewable Energy Solar Photovoltaic

Private Distribution Utilities:

CEPALCO Cagayan Electric Power & Light Company

DLPC Davao Light and Power Corporation

MERALCO Manila Electric Company

SFELAPCO San Fernando Electric Light and Power Company

Regions/Areas:

CBD Central Business District

NCR National Capital Region

NCMA North Central Mindanao Area

NEMA North Eastern Mindanao Area

NWMA North Western Mindanao Area

SEMA South Eastern Mindanao Area

SOCCSKSARGEN South Cotabato, Cotabato, Sultan Kudarat, Sarrangani & Gen Santos

SRP South Road Properties

SWMA South Western Mindanao Area

Regulatory:

ASAI Ancillary Services Availability Indicator

CA Connection Assets

CC/RSTC Connection Charges/Residual Sub-transmission Charges

ConA Congestion Availability

CSI Customer Satisfaction Indicator

FD Final Determination

FIT Feed-in-Tariff

FOT / 100 Ckt-km Frequency of Tripping per 100 circuit-km

OATS Open Access Transmission Service


PA Provisional Authority

PBR Performance-Based Ratemaking

RAB Regulatory Asset Base

RSTA RTWR

Residual Sub-transmission Assets Rules for Setting Transmission Wheeling Rate

SA System Availability

SEIL Std. Equipment Identification & Labeling

SISI System Interruption Severity Index

Supply-Demand and Investment:

AAGCR Annual Average Compounded Growth Rate

CAPEX Capital Expenditures

CR Contingency Reserve

DR Dispatchable Reserve

FRR Frequency Regulating Reserve

GDP Gross Domestic Product

GRDP Gross Regional Domestic Product

SPD System Peak Demand

Transmission Service Provider:

NGCP

National Grid Corporation of the Philippines

Transmission System/Projects:

ACSR Aluminum Cable Steel Reinforced

ACSR/AS Aluminum Cable Steel Reinforced/ Aluminum-clad Steel

AIS Air Insulated Switchgear

CTS Cable Terminal Station

CS Converter Station

EHV Extra High Voltage

ETC Expected Target Completion

GIS Gas Insulated Switchgear

HVAC High Voltage Alternating Current

HVDC High Voltage Direct Current

MCM Thousand Circular Mills

OHTL Overhead Transmission Line

O & M Operation and Maintenance

PCB Power Circuit Breaker


ROW Right-of-Way

SACS Substation Automation Control System

SO System Operations

SCADA Supervisory Control and Data Acquisition

SIS System Impact Study

SPD System Peak Demand

SPS Special Protection System

SP-SC Steel Pole Single Circuit

SP-DC Steel Pole Double Circuit

ST-SC Steel Tower Single Circuit

ST-DC Steel Pole Double Circuit

S/S Substation

TACSR Thermal Aluminum Cable Steel Reinforced

T/L Transmission Line

Unit of Measure:

ckt-km Circuit-kilometer

km kilometer

kV kilo-Volt

MVA Mega-Volt Ampere

MVAR Mega-Volt Ampere Reactive

MW Mega-Watt


Appendix 11 – Contact Details 1. For all general inquiries regarding the TDP and for making written submissions in respect

to network projects described in Chapters 5 to 9, you may contact any of the following: Mr. Yu Haihong Tel: 63 2 9812555 Head Fax: 63 2 9284456 Transmission Planning Department E-mail: [email protected] Mr. Redi Allan B. Remoroza Tel: 63 2 9812532 Deputy Head of TPD / Head Fax: 63 2 9284456 Luzon System Planning Division E-mail: [email protected]

Mr. Christian B. Ereño Tel: 63 2 9812535 Head Fax: 63 2 9284456 Visayas System Planning Division E-mail: [email protected] Mr. Fernando S. Javier Tel: 63 2 9812630 Head Fax: 63 2 9284456 Mindanao System Planning Division E-mail: [email protected]

Mr. Vicente N. Loria Tel: 63 2 9812587 Head Fax: 63 2 9284456 Research and Special Studies Division E-mail: [email protected] 2. For inquiries relating to load forecast information, you may contact: Mr. Armando A. Pagayon Tel: 63 2 9812533 Head Fax: 63 2 9281861 Regulatory Planning & Research E-mail: [email protected] 3. For inquiries relating to transmission services, you may contact: Mr. Philip DV. Dasalla Tel: 63 2 9812595 Head Fax: 63 2 9281861 Network Access Customer E-mail: [email protected]

Accounts Services Division



Documents

2013 TDP Consultation Draft_VolI-Major Network Development