Continuously implement transmission system upgrade and
expansion program
To deliver reliable and sufficient power supply to end-user,
several major projects have been prioritized by TransCo primarily
to decongest the major transmission highways of the country.
For the Luzon grid, major projects include the integration of
recently completed and incoming power plants into the system to
effectively transmit power to the main grid. Likewise, the strengthening
of the southern transmission corridors through the completion
of transmission lines reinforcement from Batangas to Makban and
further to Binan to establish a more reliable delivery system
towards Metro Manila. In Northern Luzon, two major projects are
being implemented, namely the upgrading of the San Manuel-Concepcion-Mexico
transmission line and the completion of Bauang-San Esteban 230
kV transmission line project.
On the other hand, ongoing projects for Visayas focuses on interconnection
reinforcement and substation expansion. Interconnection projects
include the upgrading of the Wright to Calbayog 69 kV to 138 kV
transmission systems, the Leyte-Cebu Interconnection project,
Cebu-Negros-Panay Uprating Project, Cebu-Mactan 138 kV Interconnection
and the Panay-Boracay Interconnection.
Substation expansion projects are being undertaken in Bacolod
(Negros III) to accommodate the increase in demand in the area.
In Cebu, expansion of substation and line reinforcement are being
pursued to establish reliable delivery system towards the franchise
area of VECO. Total ongoing projects entail the construction of
562 ckt-km. of transmission lines, 1,160 MVA of substation capacity
and 357 MVAR of capacitor devices for voltage support.
For the Mindanao grid, a total of 479 ckt-km of lines and 1,100
MVA of substation capacity is being implemented. Specific projects
include the Abaga-Kirahon 230 kV Transmission Backbone, reinforcement
of the 138 kV lines from General Santos to Tacurong extending
to Nuling, extension of lines from Sangali to Pitogo, expansion
of major substations in Aurora, Maria Cristina, Sta. Clara, Kibawe,
Butuan, Bislig, New Loon and Tindalo, installation of new substations
in Bunawan and Maco and extension of 69 kV lines to connect the
load-end substations of the EC.
Implementation of Wholesale Electricity Spot Market (WESM)
In mid-2005, the DOE and PEMC have become increasingly engaged
in preparing for the commercial operation of WESM in Luzon. Through
regular meetings, both have sought the line between asserting
control and by putting in place an overarching organization.
Prior to the commercial operation of WESM, a trial operation
is ongoing to test the rules, systems and procedures of the WESM,
as well as ensure market participant readiness. The Trial Operation
Program is expected to continue until the commercial operation
of WESM. Likewise, various manuals, protocols and methodologies
that will govern its operation have been approved. The Philippine
Electricity Market Corporation (PEMC) is now accepting nominations
for membership in the PEM Board Committees of WESM that will directly
be involved in the development and overall governance of the spot
market.
Preparations are also underway for the start of the commercial
operations of the WESM with the launching of the WESM Commercial
Operations Readiness Assessment. The Commercial Operation Plan
was launched to prepare for the opening of the WESM in Luzon and
Visayas.
100 Percent barangay electrification by 2008
As part of the government's 10-point agenda, the DOE pursued
its thrust towards a 100 percent barangay electrification by 2008.
As of December 30, 2005, a total of 39,381 barangays was energized
bringing the electrification level to 93.9 percent. This leaves
a total of 2,564 barangays still to be energized until 2008.
To promote private sector participation in the missionary areas,
Department Circular (D.C.) 2005-12-011 was issued prescribing
the guidelines for participation of Qualified Third Parties (QTPs)
for provision of electric service in remote and unviable areas.
The circular sets forth the qualification criteria for QTPs, the
process by which areas shall be selected for the QTP program and
the process of selecting the QTP to serve the unviable area. The
Rural Power Project-Project Management Office is assisting and
guiding private sector firms that have developed their own projects
adaptable under the QTP framework, specifically in the operation
and management of off-grid systems. Likewise, pre-investment studies
and baseline studies were conducted by DOE on five provincial
market packages namely: Palawan, Iloilo-Antique, Eastern Samar
and Agusan del Sur.
Open at least ten SPUG areas to private sector participation
The bidding for the privatization of NPC-SPUG areas was supervised
by the International Finance Corporation. With the opening of
bidder's envelopes in August 2005, Coastal Consortium submitted
a lower electric generation service cost and emerged as the winning
bidder on the opening of the financial proposals.
NPC-SPUG areas with New Power Provider (NPP) are as follows:
- Bantayan Island - Bantayan Island Power Corporation
- Oriental Mindoro, mainland Palawan and Catanduanes - Power
One Corporation
- Marinduque, Tablas and Romblon Islands - Coastal Consortium
Areas still open for private sector participation:
- Occidental Mindoro, Camotes and Masbate - opted for SPUG
to determine the NPP
- Siquijor - opted to select its own NPP
- Basilan, Sulu and Tawi-Tawi - IFC to handle the selection
of their sole NPP
