NGCP mulls 'technology clustering' to streamline SIS approvals
3-tiered game plan proposed
Transmission firm National Grid Corporation of the Philippines (NGCP) is eyeing "technology clustering" as one systematic approach that it can operationalize to streamline approvals of system impact study (SIS) for energy projects.
The company advanced that proposal ahead of the scheduled meeting that Executive Secretary Lucas P. Bersamin will be convening for the energy virtual one-stop shop (EVOSS) steering committee, with the intent to firm up a 60-day SIS approval timeline.
As explained by NGCP, the 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.”
The company said it is “adopting a clustering approach for SIS, grouping together power plants with a common connection point or study area,” expounding that “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.”
Energy Secretary Raphael P.M. Lotilla conveyed to media this week that they will require NGCP to give specific details on how it can execute SIS approvals within the prescribed 60-day timeframe of processing.
Apart from ‘technology clustering’ modality, NGCP also sounded off plans on expanding its SIS team “through hiring additional manpower” – that way, it can reinforce its capacity to study and evaluate SIS applications simultaneously.
The other game plan propounded by the company is “outsourcing some aspects of the SIS process,” but it pointed out that regulatory go-signal on accreditation mechanism is still pending with the Energy Regulatory Commission (ERC).
“This outsourcing initiative is anticipated to further augment the organization's capabilities and expedite the completion of SIS for various power plant proposal…the measures used by the NGCP to address the SIS backlog forms part of the company’s extensive plan to meet the country’s increasing energy requirements. the company stressed.
Overall, NGCP stated that it is “carrying out a comprehensive series of actions to tackle the challenges posed by the lengthy queue of SIS for power plant connections.”
It emphasized that “due to the increasing demand for power generation in the country, the number of applications for SIS surged significantly.”
The company specified though that “majority of the applicants do not push through with their initial plans, with only around 28-percent of completed SIS resulting in the establishment of actual power plants” --- or 7 out of 10 SIS applications would typically end up in project cancellations.
Almeda argued that in developed energy markets – primarily the United States and United Kingdom, “the completion of grid impact studies typically takes more than three years.”
In terms of evaluation process for SIS applications, he noted “other countries usually operate on a ‘first-come-first-served’ basis. We do it on a ‘first-ready-first-served’ basis.”
Almeda added “this strategy has been discussed with the DOE. It may be worth considering to depart from the first-come-first-served basis currently in place through EVOSS, in order to be faster and more efficient. Generation project proponents who are first in line for SIS are not necessarily first to be ready with complete requirements. In fact, many request for time extensions, which also contributes to the prolonged SIS processing time.”
The NGCP chief executive enthused “we take our functions and responsibilities very seriously, and continuously work towards a cohesive, centralized, and systematic approach to energy planning for our country.”