DoE receives 10 bids for fast-track project status

THE Department of Energy (DoE) has received 10 applications from companies in the energy sector that want their projects to be classified “nationally significant” under Executive Order No. 30, the law that offers faster regulatory approval.

Energy Secretary Alfonso G. Cusi said among the projects is the proposed P52-billion transmission interconnection plan for Visayas and Mindanao, which last year secured provisional approval from the Energy Regulatory Commission (ERC).

“They have applied for EO 30,” he told reporters.

The project, which secured provisional authority from the Energy Regulatory Commission (ERC) on July 11, 2017, will enable power supply importations among the Luzon, Visayas, and Mindanao grids.

“There is already a ready company,” he said, adding that he still wanted to make sure that they will not be any issue before the department issues an approval.

The project involves linking of the power grids via Cebu in the Visayas and Dipolog City in Mindanao. The converter stations in Visayas and Mindanao will be located in Sibonga, Cebu and Aurora, Zamboanga del Sur, respectively.

With the project, he said the deficiency of supply in Visayas may be supplied by importing power from Luzon or Mindanao.

The project, run by the National Grid Corp. of the Philippines, is estimated to be completed in 46 months or nearly four years and still within the term of the current political leadership, which ends in 2022. The estimated cost is P51.6967 billion.

With an interconnected grid, the overall power supply security is expected to be improved as sharing of reserves will be possible.

Mr. Cusi declined to identify the other projects that applied for the perks under EO 30, but he said one geothermal project in north Luzon is among them.

Last month, the Energy Investment Coordinating Council ( EICC) issued an advisory to power developers on how their projects can qualify under EO 30.

The EICC, which is headed by the DoE, will require interested applicants or proponents to justify “in a clear and unequivocal manner” how their projects are in consonance with the goals and objects of the Philippine Energy Plan (PEP), the blueprint for the country’s long-term energy outlook.

The proposed projects should be included in the list of projects embodied in the PEP. The proponent should submit a letter of intent addressed to the Energy secretary along with a copy to the DoE director of the energy policy and planning bureau.

“The proponent must be able to establish in a clear and detailed manner that the proposed project is qualified to be declared as EPNS,” it said, citing seven “attributes” for qualification.

The attributes are: capital investment of P3.5 billion; significant contribution to the country’s economic development; significant consequential economic impact; significant potential contribution to the country’s balance of payment; significant impact on the environment; significant complex technical processes and engineering designs; and significant infrastructure requirement.

The EICC was created pursuant to EO 30, which was issued on June 28, 2017, in order to spearhead and coordinate efforts to harmonize, integrate and streamline the regulatory processes, and forms relevant to the development of energy investments relating to energy projects of national significance.