ERC Case No. 2008-112MCERC okays TRANSCO/NGCP Project in Bulacan
The Energy Regulatory Commission (ERC) approved on 27 April 2009 the replacement of the four (4) transformer banks of the San Jose Substation in Bulacan as proposed by TRANSCO (National Transmission Corporation) and its concessionaire - NGCP (National Grid Corporation of the Philippines). The project intends to ensure the reliability and stability of Transco/NGCP’s transmission network in the areas served by the said substation. The San Jose Substation serves approximately 40% of Metro Manila’s power needs.
The total cost of the project amounting to US$60.91 Million, inclusive of installation, testing and commissioning costs, will be funded from internal cash generation of Transco/NGCP. “The project cost will not be automatically included in the Maximum Allowable Revenue (MAR) for the current regulatory period. This means that the project will have no immediate impact on the price of electricity charged to consumers,” ERC Executive Director Francis Saturnino Juan emphasized.
The proposal for the replacement of the transformers of the San Jose substation came after an outage in July 2008 that prompted the System Operator (TRANSCO/NGCP) to revise the dispatch schedule in order to sustain an uninterrupted supply of power. That arrangement used the more expensive oil-based plants and significantly affected the price settlement at the WESM.
At present, the San Jose Substation, which is in highly critical condition, has a 2400 MVA capacity. The ERC found out that majority of the transformers in the said substation are in a stage of severe deterioration. The replacements are thus critical. The replacement of the four (4) banks composing of thirteen (13) 250 MVA 500/230 kV transformers (one of which will serve as a spare unit) will increase the capacity of the substation to 3000 MVA. This will address the growing requirement of consumers, particularly in Metro Manila, and will help sustain the security and reliability of the grid.
Transformers play an important role in the transmission of electricity from the generating plants to the end-consumers. Electricity produced by generating plants is stepped up to a high voltage so that it can be transmitted over long distances through high voltage power lines to minimize system losses. The longer the distance electricity has to travel, the higher the voltage must be. High voltage electricity flows into the transformers of DUs at substations to step down the electricity to a level that in some cases can be used by industrial users until it reaches the smaller transformers commonly found in street poles for conversion to a voltage suitable for residential or commercial use (normally 220 V).
May 21, 2009