NGCP Grid Interconnection Project: Unification in Luzon, Visayas and Mindanao Grids of the Philippines Review

By: Franc-Lizter T. Balabala

NGCP Grid Interconnection Project

Fig. 1: Transmission Backbones and Island Interconnections. (Source: Power Development p. 103)

In pursuit of the National Grid Corporation of the Philippines (NGCP) vision of building One Grid Philippines, the system operator (SO) continues to embark on a major interconnection project. [1] As the country moves forward, electricity demand by industries and communities will continue to rise, and to meet the country’s future power needs, further grid strengthening is required. [2]

To support the Philippine Energy Plan (PEP) 2020-2040 of the Department of Energy (DOE) issued last October 2021, NGCP formulated the “Transmission Resiliency and Augmentation for Nationwide Smart Grid Management through Interconnected Systems, Organization and Networks 2040” (TRANSMISYON 2040). [3] The project objectives are the following:

• Enabling capacity-sharing through grid interconnection;

• Transitioning to the smart grid one substation at a time;

• Completion of grid looping configuring and mandatory redundancy;

• Grid resilience through asset refresh; and 

• Full harmonization of Renewable Energy (RE) resources. [3]

Table 1: Transmission Master Plan Proposed Projects for 2016-2040 (Source: Transmission Development Plan p. 179) [4]

Leyte-Luzon HVDC Interconnection

The Leyte-Luzon High-Voltage Direct Current interconnection is a monopolar transmission link between the islands of Leyte and Luzon geothermal power plants. [5] The Japan International Cooperation Agency conducted the project's feasibility study in 1981. [6] Its capacity is 440 MW and it went into service on August 10, 1998. The HVDC Leyte-Luzon used 21 kilometers of submarine cable and 430 kilometers of overhead lines. [7]

Fig. 2: Schematic of the HVDC interconnection. (Source: LEYTE-LUZON HVDC POWER TRANSMISSION p. 3) [5]

Mindanao-Visayas Interconnection Project (MVIP)

Fig. 3: One Grid 2020. (Courtesy of NGCP.PH)

The Mindanao-Visayas Interconnection Project aims for a unified national grid by linking Mindanao and Visayas power grids and ensuring energy sources sharing across the network. Authorized by the Energy Regulatory Commission dated 2017 after five (5) years of careful research and planning. The MVIP used 184 circuit kilometers of submarine cables and 422 circuit kilometers of overhead wires to connect Lala Converter Station in Cebu using High-Voltage Direct Current (HVDC) cables, plus 104 circuit kilometers of overhead wires from Magdugo Substation to Dumanjug Converter Station using High-Voltage Alternating Current (HVAC) in Cebu. The HVDC system enables efficient energy transmission between Mindanao and Visayas with minimal loss, thus ensuring that areas most needed are transmitted sufficient power. [2] 

The estimated cost of the project was Php 52 billion [8] and it is set to be completed by December 2020. [2] However, due to the COVID-19 pandemic that restricts foreign experts’ entry, work suspension, and manpower reduction the project execution was significantly delayed. [9]

The One Grid 2020 goals are lessening power interruptions nationwide, maximizing the use of local energy resources, promoting sustainable energy sources, and ensuring sharing of energy resources across the Philippines. [2] 

Transmission Master Plan (TMP)

NGCP’s vision to build the strongest power grid in Southeast Asia, the social and economic development of the Philippines, and satisfy the stakeholders’ needs guided the formulation of the Transmission Master Plan. [4]

The Philippine Grid interconnections creation was among the consideration to meet the forecasted demand with upgrade and expansion of the transmission network and support new generating facility entry and allow market competition. As the already interconnected Luzon and the Visayas Grid, the Visayas and Mindanao connection create a more open, liberalized, and competitive market as Mindanao-based industry players participate freely in Wholesale Electricity Spot Market (WESM). [4]

Fig. 4: Existing and Future Philippine Network Topology. (Source: Transmission Development Plan p. 180) [4]

Conclusion

The NGCP interconnection project was formulated for the benefit of the consumers and to deal with the increasing demand for electricity to be a more stable, secure transmission system in the three major islands and maximize the use of energy resources available. As a unified grid, power transmission services will be more reliable, thus helping boost investments, infrastructure, and commerce in the country. However, interconnections projects are beneficial or not depending on the amount of renewable energy installed. [10]

References

[1]	NGCP, "NGCP interconnection projects aimed at ONE Grid Philippines," 14 January 2020. [Online]. Available: https://www.ngcp.ph/article?cid=16137.
[2]	NGCP, "One Grid 2020: Unifying the Philippines' Power Transmission Network," [Online]. Available: https://www.ngcp.ph/mvip/. [Accessed 20 February 2023].
[3]	NGCP, "Transmission Development Plan 2022-2040 Consultation Draft," 2020.
[4]	NGCP, "Transmission Development Plan 2016-2020 Final Report Volume 1 Major Network Development," 2019.
[5]	J.F. Allaire, L.R. Wilhelmsson, M.P. Garcia, et. al., "Leyte-Luzon HVDC Power Transmission: Commissioning Highlights, Performance Measurements, and Operating Experience," 2000.
[6]	"Report on Feasibility Study on Leyte Power Transmission Project," Agency, Japan Internation Cooperation, vol. I, p. 3, 1982.
[7]	"Leyte-Luzon," in Hitachi ABB Power Grids.
[8]	"Frequently Ask Questions," National Grid Corporation of the Philippines, [Online]. Available: https://www.ngcp.ph/mvip/FAQs.asp. [Accessed 20 February 2023].
[9]	"NGCP completes integral components of the MVIP," National Grid Corporation of the Philippines, 30 June 2022. [Online]. Available: https://www.ngcp.ph/article?cid=16554. [Accessed 20 February 2023].
[10]	S. Taniguchi, "Securing Access to Electricity with Variable Renewable Energy in the Philippines: Learning from the Nordic Model.," ADBI Working Paper 1009. Tokyo: Asian Development Bank Institute, 2019.