2.3-B transmission for San Miguel’s Davao power plant approved

The 2.31 billion Malita-Matanao 230 kilovolt (kV) transmission project of the National Grid Corporation of the Philippines (NGCP) that shall underpin the wheeling of capacity of the 600-megawatt San Miguel Consolidated Power Corporation’s (SMCPC) coal-fired plant has been granted regulatory approval.

It has been emphasized that the cost of the project cost has been scaled down to 2.310 billion – from originally at 2.377 billion – due to interim exclusion of some components of the proposed facility.

And while the transmission facilities will be designed at 230kV, it was noted that the assets will just be initially energized at 138kV.

“The cost estimates were based on cost per kilometer for the transmission line derived from previous contracts,” a ruling of the Energy Regulatory Commission (ERC) has stipulated.

It was emphasized that “included in the estimated costs are the technical services such as cost of route/topological survey, geologic investigation, right of way (ROW) negotiations/acquisitions, relocation cost, reformed value added tax (RVAT) for local purchases; and site management.”

As blueprinted, the multi-phased San Miguel coal plant “will be connected to the proposed new Malita 230kV substation and the said substation will be connected to the grid through the existing Matanao-TorilDavao 138kV facilities.”

It has been qualified that “if the proposed project will not be implemented, SMCPC’s coal plant will not be connected to the Mindanao grid and there will be no additional generation capacity to the island totaling 600MW.”

The San Miguel Davao plant’s development phases will be at 150MW capacity each per year from years 2015 to 2018. The facility will have four generating units and will be reaching commercial commissioning successively. (MMV)