The National Grid Corporation of the Philippines (NGCP) in September endorsed 19 power generation and energy storage system (ESS) projects generating 3,632.18 megawatts (MW) for system impact studies (SIS), the Department of Energy (DOE) said on Wednesday. The studies are essential in assessing how the projects affect grid performance and in determining the necessary adjustments such as additional transmission lines or substations.
Eighteen of the projects are renewable energy initiatives, with Vortex Offshore Wind Corp.’s ambitious 1,000 MW Mindoro offshore wind project representing the largest capacity. The only energy storage system project in the mix is Energija Sur 2 Inc.’s 40-MW battery storage project in Lumban, Laguna.
While the clearance is a positive step, projects undergoing SIS are not guaranteed to push ahead as such depends on factors like funding and offtake agreements. To enhance efficiency, the NGCP has adopted a clustering approach, allowing for simultaneous evaluation of projects sharing connection points.
Despite the surge in SIS applications traced to rising power demand, historical data indicate that only 28 percent of studies lead to the establishment of actual power plants, highlighting the challenges developers face in bringing their projects to fruition.
