NGCP pressed to cut approval process for RE projects

MANILA  -The country’s lone grid operator may have another challenge on its plate after the Department of Energy (DOE) revealed that it was working to effectively cut the long approval time for a crucial assessment process required for the development of new renewable energy projects in the country.

In an interview with reporters, Energy Secretary Raphael Lotilla explained that National Grid Corp. of the Philippines (NGCP) would soon be ordered to shorten its usual two-year timeline in approving the conduct of system impact studies (SIS) to just 60 days.

An SIS is an engineering assessment required for power developers to gauge whether the country’s transmission system is capable of absorbing new technologies.

Developers need to secure NGCP’s approval before conducting their own studies through third-party SIS service providers.

“The system impact studies, unfortunately, are rather delayed … A number of developers in the sector have been complaining of delays from one and a half to two years in the SIS alone. These are the things that we want to able to address so that renewable energy developers will be able to focus on the rollout of their projects,” Lotilla said.

The energy virtual one-stop shop (EVOSS), headed by Executive Secretary Lucas Bersamin, imposes timelines on the delivery of permits, including SIS.

READ:  NGCP blamed for shunned DOE auction

Timetable

However, it currently does not impose a specific timeline for NGCP’s approval of SIS.

Lotilla noted that the EVOSS steering committee was now working on ways to address the delays, adding that they would also be coordinating with NGCP.

The company, which won competitive bidding in 2009 to manage and operate the country’s transmission grid, has not responded to requests for comment.

Lotilla cited data from NGCP showing that of those who had applied for SIS, only less than 50 percent actually carried out their proposed projects.

“So that means that all the others who have applied and did not carry out their projects had gotten in the way. But there should be a way of purging the list. Even other agencies have a way of cleaning up the list so that if you don’t implement your project within a certain number of days, you get replaced,” he said.

“We want to work with the private sector and we want to work in a more efficient and effective way, and so this process is intended precisely to achieve that,” the energy chief added.

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