President Ferdinand Marcos Jr. has directed the Department of Energy (DoE) and the Energy Regulatory Commission (ERC) to explore the feasibility of allowing third-party transmission projects in the Philippines. In his speech during the switch-on ceremony of the Mindanao-Visayas Interconnection Project (MVIP), the President emphasized the need to complete the project and address the country’s power needs as it emerges from the pandemic economy.
The President’s directive includes the completion of the rate reset for the National Grid Corporation of the Philippines (NGCP) without any further delay. Additionally, he has urged the DoE and ERC to evaluate the proposal of allowing third parties to construct transmission projects at a pace that aligns with the country’s power requirements.
Highlighting the significance of the MVIP, President Marcos Jr. acknowledged the economic losses caused by a recent blackout in Western Visayas, amounting to P3.8 billion in Iloilo province alone. He emphasized the importance of avoiding similar costly interruptions not only in Panay Island but throughout the country.
The completion of the P52 billion MVIP, a 184-circuit-kilometer high-voltage direct current submarine cable with a transfer capacity of 450 MW, marks a historic milestone for the nation. It physically connects the power grids of Luzon, Visayas, and Mindanao, enabling the transmission of electricity between these regions. President Marcos Jr. expressed his pride in this achievement, highlighting its significance in ensuring a reliable and adequate energy supply for homes and establishments across the country.
The President reassured the power sector of the government’s support and called for the continuous efforts to maintain the reliability and adequacy of the country’s energy supply. He emphasized the government’s commitment to completing significant transmission projects, particularly those that alleviate congestion and facilitate the integration of renewable energy sources.
The MVIP, initially designed to carry 450 MW of electricity, has the capacity to expand to 900 MW to meet future demands. The NGCP, responsible for the project’s operation, expressed its gratitude for the opportunity to operationalize this landmark energy project. They acknowledged the visionary leadership of President Ferdinand E. Marcos Sr. and credited the current administration, led by President Ferdinand Marcos Jr., for bringing the project to fruition.
President Marcos Jr.’s directive to study the possibility of third-party transmission projects demonstrates the government’s commitment to addressing the country’s power needs and ensuring a reliable energy supply. The completion of the MVIP not only connects the major power grids of Luzon, Visayas, and Mindanao but also paves the way for future expansion and integration of renewable energy sources. The government’s support for significant transmission projects reflects its dedication to meeting the growing power demands of the nation.
Source: The Manila Times
