NGCP seeks expedited approvals to connect offshore wind projects

THE National Grid Corp. of the Philippines (NGCP) said it will require support to obtain expedited permits to connect offshore wind projects to the grid.

NGCP Assistant Vice-President Cynthia P. Alabanza said in a recent briefing that it is “very critical… to provide support to the transmission service provider in terms of approvals and cost recovery.”

The Philippines is aiming to unlock the potential of offshore wind for gigawatt-scale power generation, with the grid capacity deemed adequate for the projects being lined up.

She noted that the typical timeline for bringing offshore projects online is “7-10 years… even in developed countries,” but added that the grid can accommodate the projects currently being developed.

To date, the NGCP has 10,260 megawatts (MW) worth of capacity available for new power generation assets.

“Our actions in planning generation should be aligned and moving in the same direction (with transmission), so we can identify which areas to prioritize when new plants are quickly coming online,” Ms. Alabanza added.

The Department of Energy is preparing for the auction stage of the fifth green energy auction round (GEA-5) focused on offshore wind. This round will offer 3,300 MW of capacity, with installation targeted for between 2028 and 2030.

The NGCP recently started to recover its maximum allowable revenue and under-recovery, equivalent to an increase of P0.1013 per kilowatt-hour in the transmission charge.

This forms part of NGCP’s fourth regulatory period reset, spanning the 2016 to 2022 period. — Sheldeen Joy Talavera