Grid operator vows to speed up evaluation of system impact studies for power plant connections

By Alena Mae S. Flores

NATIONAL Grid Corp. of the Philippines said Friday it is carrying out comprehensive actions to tackle the challenges posed by the lengthy queue of system impact studies for power plant connections.

SIS is a critical assessment that determines the capacity of the power grid to accommodate a new generator and identifies necessary improvements such as additional transmission lines, transformers or substations.

NGCP said in a statement that due to the increasing demand for power generation, the number of applications for

SIS surged.

It said that historically, majority of the applicants did not push through with their initial plans, with only around 28 percent of completed SIS resulting in the establishment of actual power plants.

“Although seven out of 10 SIS applicants will not actually pursue their power investments, we are obliged to fully evaluate each application when they are passed on to us by the Department of Energy,” said NGCP president and chief executive Anthony Almeda.

“Accordingly, we have taken the necessary steps to expedite the process and improve its efficiency,” he said.

The DOE asked NGCP and SIS providers to complete the study within a 60-day period.

NGCP said one of the key initiatives is the expansion of the SIS team by hiring additional manpower. It expects to boost the capacity of the organization and conduct more SIS studies simultaneously.

The company said it is also adopting a clustering approach for SIS, grouping together power plants with a common connection point or study area.

“This clustering strategy aims to streamline the process and accelerate the evaluation of multiple projects, enhancing the overall efficiency and reducing the waiting time for potential power plant developers,” NGCP said.

NGCP said it is also in the process of outsourcing some aspects of the SIS process, pending the issuance of the accreditation process by the Energy Regulatory Commission. The outsourcing initiative is anticipated to further augment the organization’s capabilities and expedite the completion of SIS for various power plant proposals.

Almeda said that in more developed nations like the United States and the United Kingdom, the completion of grid impact studies typically takes more than three years.

Union Bank of the Philippines also delivered P3.2 billion in income contribution, higher by 4 percent year-onyear. Real estate unit Aboitiz Land Inc. reported a 19-percent decline in consolidated net income to P389 million on lower sales and construction-related delays.

Standard Chartered predicts softer PH growth in 2nd half

STANDARD Chartered Bank said Friday it expects a softer growth for the Philippines in the second half of the 2023, but said the country would remain one of the fastest-growing in the region.

Jonathan Koh, Standard Chartered economist for Asia, maintained his gross domestic product growth forecast of 5.3 percent in 2023 despite a strong 6.4-percent expansion in the first quarter.

“The first-quarter GDP is strong, but growth has been slowing sequentially. Growth in the second half will be soft,” Koh said in an online briefing.

Koh said the labor market was quite strong, although the pent-up demand would continue to normalize for the rest of the year. “The pace of consumption will remain on the softer side going forward,” he said.

Koh said two of the bright spots for the Philippine economy are the continuous recovery of the tourism sector that was hit hard by the global pandemic and the sustained inflows of remittances from overseas Filipino workers.

“In terms of support to GDP, tourism is one,” he said, adding that a post-COVID recovery for the sector was fast, which would be good for the current account.

“Remittances will remain stable and will continue growing by 3 percent that will support consumption,” he said.

The International Monetary Fund earlier raised its 2023 growth forecast for the Philippines to 6.2 from 6.0. The projection was within the 6 percent to 7 percent growth forecast announced by the interagency Development Budget Coordinating Committee. Julito G. Rada