THE Energy Regulatory Commission approved the application of Aboitiz Power Corp.’s unit Therma South Inc. to build a 138-kilovolt dedicated transmission line, costing P80 million, for the proposed 300-megawatt coal-power plant in Davao.
“The application filed by Therma South Inc. to develop, own and operate a 138-kV dedicated point-to-point line and associated assets from its coal-fired power generation plant in Davao City and Davao del Sur to the new Toril substation of the National Grid Corp. of the Philippines is hereby approved,” the regulator said.
It said the connection assets should be used solely by Therma South and not be used directly to serve end-users.
Therma South hopes to complete the connection facilities for the coal-fired generation plant by November.
“The connection assets are essential to the delivery of power from the generation facility to the Mindanao grid in order to comply with the N-1 contingency provision of the Philippine Grid Corde and to have an interconnection reliability,” the ERC said.
Therma South is constructing a 300-MW coal plant in Barangay Binugao, Toril District in Davao City and Barangay Inayawan in Sta. Cruz, Davao del Sur. The P25-billion coal plant will utilize circulating fluidized-bed technology.
The company said it would finance the cost of the connection assets through loans and would recover this in the course of the power supply agreements that it would sign.
It said the cost of the connection assets would be included in the pricing structure of the supply agreements.
“The urgent need for additional capacity in the Mindanao grid and the sufficient levels of power reserve and supply merit the issuance of provisional authority so that the connection assets may be constructed in conjunction with the construction of the generating plant,” it said.
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