Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 237
Offshore Wind Worldwide 2023
The DOE recently announced the conduct
of a second auction under the GEAP this
2023, which may include different tariffs for
different RE technologies.
5. GRID AND
GRID CONNECTION
5.1 Planning and constructing
the grid connection
Connection to the Philippine grid entails
connecting to the main transmission network owned by the national government,
through the National Transmission Corporation (Transco), but operated and maintained
by the National Grid Corporation of the
Philippines (NGCP), a private entity subject
to regulation. Under the RE Act IRR, Transco
and DUs are required to include connection
facilities for RE plants in the Transmission
and Distribution Development Plans. 66 Upon
formal notice of DOE’s approval of the commencement of commercial operations of RE
plants, Transco, NGCP, and the DUs are then
mandated to effect connection with their
transmission and distribution system.
The grid connection planning begins by
conducting a system impact study (SIS)
typically undertaken during the pre-de-
237
velopment stage (PDS) of the RE project. 67
The PDS involves the conduct of preliminary
assessment and feasibility study up to financial closing and declaration of commerciality
of the RE project. 68 During the PDS, the RE
developer seeking a new connection to the
grid shall submit a service application to
NGCP seeking a new Service Agreement for
a first connection point. 69 If determined necessary by NGCP, it will, upon endorsement
of the DOE, undertake an SIS and a facilities
study (FS) for the transmission network.70
The SIS will determine the adequacy and
capability of the grid to accommodate new
connection, while the FS will determine the
modification to NGCP’s facilities required
by the RE developer, including the cost and
scheduled completion date. Generally, the
RE developer pays a fee to NGCP for the
conduct of the SIS according to the offer of
service by NGCP.71 Another option is for the
RE developer to contract an accredited third
party to conduct said study and thereafter
pay a review fee to NGCP.72
If the result of the SIS indicates that new
facilities or grid upgrades are needed, the RE
developer may conduct the FS on its own,
engage an accredited third party, or engage
66 RE Act IRR, Section 8.
67 See World Bank Group, Offshore Wind Roadmap for the Philippines, available at https://www.doe.gov.ph/sites/default/files/pdf/announcements/
Philippine-Offshore-Wind-Roadmap.pdf?withshield=1 (last accessed February 28, 2022).
68 RE Guidelines, Section 4.4.1
69 Open Access Transmission Service Rules 2022, B13.1.
70 See World Bank Group, Offshore Wind Roadmap for the Philippines, available at https://www.doe.gov.ph/sites/default/files/pdf/announcements/
Philippine-Offshore-Wind-Roadmap.pdf?withshield=1 (last accessed February 28, 2022).
71 Open Access Transmission Service Rules 2022B14.5 (a)
72 Id., B14.5(c)
