P11.86-B Siargao subtransmission facility approved for construction, NGCP says

THE National Grid Corp. of the Philippines (NGCP) said it obtained approval from the Energy Regulatory Commission (ERC) to build a P11.86-billion interconnection facility to meet growing power demand on Siargao Island.

In an order promulgated Jan. 14, the ERC authorized and directed the NGCP to finish the Claver-Siargao Interconnection Project on or before June 30, 2030.

The regulator noted that the approval is “subject to optimization based on actual use and verified expenses incurred, based on invoices and other supporting documents.”

Currently, Siargao Island gets its electricity from the Mindanao grid by tapping NGCP’s Cagdianao 69-kilovolt (kV) Substation via a 34.5-kV submarine and overhead lines owned and maintained by Siargao Electric Cooperative, Inc. (Siarelco).

Due to the absence of local generation and reliance on Mindanao, low voltage has emerged as an issue on the island.

Siarelco has appealed to the NGCP, ERC, and the Department of Energy (DoE) for an extension of the NGCP line to Dapa, Siargao via submarine cable.

NGCP’s proposed transmission project will expand the grid and ensure reliable power delivery to power consumers in Siargao Island and the Siarelco coverage area.

The project involves the construction of a new 69-kV interconnection facility from the Cagdianao NGCP Line to Siargao Island.

The NGCP will install a 42-kilometer submarine cable with a 58MWA capacity to link two new switching stations in Claver, Surigao del Norte, and Dapa.

“The project will increase transmission capacity to support growing load demand, provide a higher-voltage interconnection facility to the island, and maintain the voltage at Siarelco’s new grid connection point within its normal operating levels,” the company said.

The Claver-Siargao Interconnection Project was certified by the DoE as an energy project of national significance, making it eligible for expedited approvals.

NGCP capital expenditure projects must be approved by the ERC under Republic Act No. 9136 or the Electric Power Industry Reform Act.

Under a congressionally granted 50-year franchise, the company holds the right to operate and maintain the transmission system and related facilities, and to exercise the right of eminent domain as needed to construct, expand, maintain, and operate the transmission system. — Sheldeen Joy Talavera