The National Grid and Regional Power Situation

Building power plants to produce or generate electricity is one thing. But in an archipelago like the Philippines, the national power grid takes on an added value in transmitting power to consumers - like the highways and transport ways that crisscross its islands, allowing for the flow of life and commerce.

Visayas: at a critical juncture by year-end
No more is the grid more important than in the Visayas region (geographically made up of numerous island groupings) where power outtages are predicted to hit first. Starting December 2003, peak demand, specifically in Cebu-Negros-Panay (CNP) grid, will reach almost 800MW. The grid could only bring in 180MW of outside power from Leyte to add to CNP’s dependable capacity of less than 500MW. While the Leyte-Samar grid has surplus capacity of at least 511 MW, the whole CNP grid needs more upgrades within it and more integration with the rest of the Visayas system. Panay will be hit the hardest as it is at the end of the transmission system. However, by first quarter of 2004, a power plant by Mirant will be operational, adding 40MW to Panay’s capacity.

Mindanao: 2 years down the road
By 2006, Mindanao’s power peak demand will start to exceed its existing capacity of 1,321MW. Committed capacity until 2013 will only add 200MW per year. Unless additional capacity is added (starting at 50MW in 2005 and 250MW in 2006, gradually building to 1000MW by 2013), the power situation in Mindanao will no longer be secure. To beef up the grid, there are five major interconnection projects that would allow power-packed North Mindanao (with surplus capacity of 583MW) to plug the deficit in the western (60MW) and southern (264MW) parts of the island.

Luzon: secured only until 2008
The Luzon grid, currently with a surplus capacity of 5,000MW (peak demand versus existing capacity) will start to need additional capacity by 2008, as peak demand by 2008-2009 will spike by more than 10,000MW and also because old power plants need to be retired (siphoning at least 650MW from the existing capacity). To have a smoother flow of electricity and more efficient use of capacity, Transco has at least eight interconnection and uprating projects for the Luzon grid.