Cost of Leyte-Mindanao power transmission project put at $ 275 M
Monday, April 17, 2006
A feasibility study commissioned by the National Transmission Corporation (TransCo) has trimmed down the estimated budget for the planned Leyte-Mindanao transmission line inter connection project to $ 275 million from the original $ 450 million.
The spinoff transmission firm sees it more costeffective to get ahead with this project than invite investors for new merchant power project to meet Mindanao’s future electricity demand.
"We did an estimate a year and a half ago that it (Leyte-Mindanao interconnection) would be about $ 275 million with submarine cables," disclosed TransCo president and chief executive officer Alan T. Ortiz.
The company, underpinned by the Department of Energy, has tapped Japanese firm Chubu Electric to undertake the feasibility study on the project two years ago.
Though the findings then was that it was not practicable to pursue it because of the 200-megawatt Mindanao coal-fired project; project blueprints ought to change now because of the anticipated demand growth in Mindanao.
In view of this, TransCo is proposing to the DoE "to revisit the Leyte-Mindanao interconnection project," citing that based on the supply-demand profile of the area, "an equilibrium position will be reached by 2009."
He noted that if the 200 to 300-megawatt capacity would be developed out of the planned Cabalian geothermal power project in Leyte; this could serve as anchor load for the link-up of the transmission lines.
"We are proposing that the project be advanced to 2009-2010 instead of 2014, where it is right now," Ortiz said.
The TransCo proposal would be an interconnection that only allows oneway dispatch of load; which means that only the generated electricity from the geothermal plants in Leyte that could be transmitted for Mindanao use; and not vice versa.
Despite the transmission firm’s consistent push, however, the energy department remains ambivalent if it would have to finally give the go-signal for the Leyte-Mindanao project.
What has been causing split in the government’s frame of decision-making is if it would need to wait for interests from investors to put up new power plant projects in Mindanao.
Even if the project remains in cliffhanger, TransCo noted that it is determined to push hard for the transmission lines interconnection because this is also a step ahead in future plans of establishing a single national grid.
As a way of ensuring reliable and sustainable power for Mindanao, even local government leaders are already inclined on giving their nod on the project’s implementation. (MMV)
posted by philpower @ 2:35 PM,
