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STRENGTHENED POWER SYSTEM RESILIENCE IN AND OUTLYING AREAS

FINAL REPORT November 12, 2018

BUILDING LOW EMISSION ALTERNATIVES TO DEVELOP ECONOMIC RESILIENCE AND SUSTAINABILITY PROJECT (B-LEADERS)

November 2018 This document was produced for review by the United States Agency for International Development. It was prepared by RTI International.

STRENGTHENED POWER SYSTEM RESILIENCE IN MARAWI AND OUTLYING AREAS

FINAL REPORT November 12, 2018

BUILDING LOW EMISSION ALTERNATIVES TO DEVELOP ECONOMIC RESILIENCE AND SUSTAINABILITY PROJECT (B-LEADERS)

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. This document is intended to comply with Section 508 Standard of the Federal Acquisition Regulation. If you have any difficulties accessing this document, please contact [email protected]. TABLE OF CONTENTS

EXECUTIVE SUMMARY ················································································ 1 PROJECT BACKGROUND ············································································· 2 PROJECT IMPLEMENTATION PLAN METHODOLOGY ·································· 3 DESCRIPTION OF THE PROJECT ·································································· 4 PROJECT OBJECTIVES ················································································· 5 SCOPE OF THE PROJECT AND DELIVERABLES ············································ 6 Project Methodology ...... 7 Selected Assessment Criteria ...... 8 substation and line Capacity ...... 8 Existing Infrastructure ...... 8 Economic and Financial Aspects ...... 8 Project Implementation Schedule ...... 9 Performance Management Framework ...... 9 DELIVERABLE NO. 1 ··················································································· 10 Ground Zero – Most Affected Area (MAA) ...... 10 Assessment and Recommendations for the Rehabilitation of the Substations: Dansalan, Ganassi and ...... 11 Dansalan Substation (7.5MVA And 40MVA) ...... 12 Ganassi Substation (10MVA)...... 16 Malabang Substation (2 X 5MVA) ...... 18 Over-All Findings for the Substations ...... 20 Over-All Findings of the Sub-Transmission Lines ...... 20 69kV Sub-Transmission Lines ...... 20 13.2kV Distribution Lines ...... 22 Asset Valuation ...... 24 summary of The Assets Valuation For Lasureco...... 24 DELIVERABLE NO. 2 ··················································································· 26 Alternative Scenarios Designed to Increase Resilience ...... 27 69kV and 13.2kV System Loop Ready ...... 27 Installation Of Nets, Cctv, Blast Walls To Ensure Security And Maintenance ...... 31 Use of Mobile Substation ...... 32 Installation of Supervisory Control And Data Acquisition (SCADA) ...... 35 Geographical Information System (GIS) ...... 36 Smart Meters and its Advantages ...... 37 Community Solar ...... 39 Floating Solar ...... 40 Summary of Investment Costs ...... 41

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT I

DELIVERABLE NO. 3 ··················································································· 42 Overview/Rationale: ...... 42 Facilitation/Mobilization of the Private Sector to Restore Electricity Services ...... 42 Expected Outcome of the project ...... 44 Vegetation Trimming ...... 44 Introduction to Community-Based Energy Efficiency Measures ...... 45 Assess End User Needs for Various Renewable Energy Technologies and Business Models for Different Uses...... 46 Installation of Solar Photovoltaic Streetlights ...... 48 Community-Based Solar Systems for Small Communities where Rooftop Solar Installation is not Economically Feasible ...... 49 Educate Community on Modern Farming Technologies, Government Provisions of Necessary/Needed Materials ...... 52 Introduce Provisions of Modern Transportation Facilities (EV-Electric Vehicles) ...... 54 Tourism ...... 56 Load/Demand Forecasting (Annex To 69kV Loop Ready) ...... 57 RECOMMENDATIONS ················································································ 58 ANNEX A: ASSET VALUATION OF LASURECO FACILITIES ························· 59

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT II

FIGURES

Figure 1. Actual Ground Zero Scenario After the Siege (Photo taken March 8, 2018) ...... 10 Figure 2. Map illustrating location of LASURECO substations ...... 11 Figure 3. New Single Line Diagram of LASURECO ...... 11 Figure 4. 7.5MVA power transformer in Dansalan substation, photo taken April 10, 2018 ...... 12 Figure 5. Existing Installed Main Equipment in Dansalan Substation ...... 13 Figure 6. Observations in the Dansalan 7.5MVA Substation, photo taken April 10, 2018 ...... 13 Figure 7. Dansalan Substation with Installed Equipment, Photo taken April 11, 2018 ...... 14 Figure 8. 40MVA Substation in Dansalan, Photo taken April 10, 2018 ...... 14 Figure 9. 13.2kV Main Secondary Cable Ampacity using only 2 x 350MCM XLPE Cable ...... 14 Figure 10. Transformer Oil Leaking, Photo taken April 10, 2018 ...... 14 Figure 11. (Left) Suggested Base Structure for 13.2kV Main Cable and (Right) the 500 MCM XLPE cable donated by DLPC to LASURECO ...... 15 Figure 12. Photos of Ganassi Substation, taken April 11, 2018 ...... 16 Figure 13. Inside the Malabang Substation with the Recloser in View, Photo taken April 11, 2018 ...... 18 Figure 14. Newly Installed Equipment in the Malabang Substation. Recloser (left) and On Load Tap Changer (Right) ...... 19 Figure 15. 69kV Sub-transmission Line Connecting the Ganassi Substation, Photo taken April 11, 2018 ...... 20 Figure 16. 69kV Sub-transmission Line Connecting the Malabang Substation, Photo taken April 11, 2018 ... 20 Figure 17. 69kV Sub-transmission Line Connecting the Dansalan Substation, Photo taken April 10, 2018 .... 20 Figure 18. 13.2kV Distribution Line Connected to Consumers with Meters on the Pole ...... 22 Figure 19. Distribution System with Self-healing Capabilities ...... 23 Figure 20. Presentation of Alternative Scenarios before the representatives of DOE and LASURECO ...... 26 Figure 21. Presentation of Alternative Scenarios before the representatives of LASURECO and USAID, Photo taken August 3, 2018 ...... 26 Figure 22. 69kV Sub-Transmission Line ...... 27 Figure 23. Typical Substation Setup ...... 27 Figure 24. Typical Substation Setup Diagram ...... 28 Figure 25. Radially-Operated, Loop Ready Substation Setup ...... 29 Figure 26. Automatic Load Transfer Diagram ...... 30 Figure 27. Substation Diagram ...... 31 Figure 28. Image of a Substation in ...... 31 Figure 29. Illustration of Blast Walls ...... 31 Figure 30. Mobile Substation with Complete Equipment within the Low-bed Trailer ...... 32 Figure 31. Installation of Tree Wires in Problematic Areas ...... 32 Figure 32. First Underground Distribution System in Davao City ...... 34 Figure 33. SCADA Control Room ...... 35 Figure 34. SCADA Flow ...... 35 Figure 35. Illustration of Geographic Information Systems ...... 36 Figure 36. Illustration of Conventional and a Smart Meter, Photo taken May 30, 2018 ...... 37 Figure 37. Smart Grid Pyramid ...... 38 Figure 38. Community Solar ...... 39

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT III

Figure 39. Proposed Solar Floating Facility in the Lake ...... 40 Figure 40. 500MCM XLPE Cable ...... 42 Figure 41. Illustration of a Reinforced Supporting Structure ...... 43 Figure 42. Vegetation Trimming Activities ...... 44 Figure 43. Assembly ...... 46 Figure 44. 1kW Local Solar PV Rooftop Installation, Dona Vicenta, Davao City ...... 47 Figure 45. 10kW Local Solar PV rooftop Installation, Assumption Church, Davao City ...... 47 Figure 46. Solar Power System Operating Flow and Rooftop Solar Application in the ...... 47 Figure 47. Installation of Solar Streetlights in Marawi City ...... 48 Figure 48. Community Solar Infographic ...... 49 Figure 49. Solar and Wind Power Plant ...... 51 Figure 50. Lake Dapao24 ...... 51 Figure 51. Modern Transportation Methods for Agricultural Produce ...... 54 Figure 52. Modern Public Utility Vehicles ...... 55 Figure 53. Images of Tourism Sites within the Lanao Region ...... 56

TABLES Table 1. Project Implementation Plan Methodology ...... 3 Table 2. Project Implementation Schedule ...... 9 Table 3. Performance Management Framework ...... 9 Table 4. Voltage drop simulation result for the Dansalan substation ...... 12 Table 5. Voltage Drop Simulation Result for the Ganassi Substation ...... 16 Table 6. Voltage Drop Simulation Results for the Malabang Substation ...... 18 Table 7. Over-all Findings for the Substations ...... 20 Table 8. Costs Needed for the Replacement of Sub-transmission Lines ...... 21 Table 9. Summary of the Asset Valuation for LASURECO ...... 24 Table 10. Comparison between a Conventional and Smart Meter ...... 37 Table 11. Summary of Investment Costs for the Proposed Alternative Scenarios to ...... 41 Table 12. Possible Agricultural Produce in the Region of Lanao Sur ...... 52 Table 13. Annual Load Growth Table ...... 57 Table 14. 13.2kV Distribution Line (Backbone) ...... 59 Table 15. Lateral Line 7.62kV ...... 59 Table 16. Secondary Lines (240V)...... 61 Table 17. Metering/Service Connections ...... 61 Table 18. Distribution Transformers ...... 62 Table 19. Substation Real Estate Property Cost ...... 62 Table 20. Summary of Asset Valuation ...... 62

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT IV

ACRONYMS

1P Single Phase A Ampere AAE Army Agricultural Equipment ACSR Aluminum Cable Steel Reinforced AMI Automated Metering Infrastructure AMR Automated Meter Reading ARMM Autonomous Region of Muslim ATF Automatic Load Transfer B-LEADERS Building Low Emission Alternatives to Develop Economic Resilience and Sustainability Project BHS Barangay Health Station CB Circuit Breaker CCTV Close Circuit Television CL Class CT Current Transformer DA Department of Agriculture DF Demand Factor DOE Department of Energy DLPC Davao Light And Power Company, Inc. DPWH Department of Public Works and Highways EMC Elevated Metering Center ERC Energy Regulatory Commission ETAP Electrical Transient Analysis Program EV Electric Vehicle GPS Global Positioning System GOABS Gang Operated Air Break Switch HEP Hydro Electric Plant IATF Inter-Agency Task Force kV Kilovolt kW Kilowatt km Kilometer kWh Kilowatt-Hour LASURECO Electric Cooperative, Inc. LGU Local Government Unit LBS Load Breaker Switch LOI Letter of Intent M Meter MAA Most Affected Area MCM Circular Mills x 103 MinDA Mindanao Development Authority MSU Mindanao State University MVA Mega Volt Amperes

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT V

NGCP National Grid Corporation of the Philippines OLTC On-Load Tap Changer PF Power Factor PIP Project Implementation Plan PMS Preventive Maintenance Service PPE Personal Protective Equipment PV Photo Voltaic RE Renewable Energy ROA Return on Assets ROI Return of Investment SA Surge Arrester SCADA Supervisory Control and Data Acquisition SF6 Sulfur Hexafluoride SLD Single Line Diagram SO System Operation SOP Standard Operating Procedure SS Substation TESDA Technical Education and Skills Development Authority WESM Wholesale Electricity Spot Market UDS Underground Distribution System UPS Uninterrupted Power System USAID United States Agency for International Development V Volt XLPE Cross-Linked Poly Ethylene

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT VI

EXECUTIVE SUMMARY

Rebuilding Marawi takes far more than rebuilding physical structures. The greater challenge lies in restoring the people’s resiliency, sense of community, dignity and hope. As majority of international and domestic entities are working in rebuilding the city from rubbles---an aftermath of the siege, the United States Agency for International Development (USAID) through its Building Low Emission Alternatives to Develop Economic Resilience and Sustainability Project (B-LEADERS) addresses the urgent need of rebuilding the power sector of Marawi City anchored on a government-led energy resiliency policy.

This report presents the principles of a robust and resilient power system for Marawi City and outlying areas. Moreover, the proposed power sector rehabilitation and reconstruction incorporates various modalities of power system design and the adoption of emerging and smart technology. Regional and local development plans are mainstreamed into key national developmental projects and processes. The plan aims to enhance the national and local capacity to develop, manage and administer projects addressing the power system resilience of the entire region. Developing a power resilient and modern community is being considered as the main output of the project, as such this would also uplift the situation of communities—with power as the main driver of economy and businesses.

The over-all assessment is focused on scenarios before and after the siege, eventually introducing alternative scenarios for a more resilient power system with advanced technology. Key factors to be considered in the course of its implementation are:

 Classification of major electrical equipment for refurbishment based on its workability with regards to its re-installation to sub-transmission lines, substations and distribution lines;  Conduct of asset valuation of the equipment to determine possibilities on how to extend life of the refurbished equipment to achieve maximum asset utilization and high returns on assets (ROA);  Development of alternative scenarios designed to increase power resilience in the region and be familiar with the utilization of modern technology;  Provision of assistance on data collection supporting study on efficient resource allocation accounting for the interaction between water, energy and land resources in Mindanao;  Facilitation of discussions in mobilizing government and private funds not only on projects that restore energy power but to provide potential economic opportunities and livelihood.

This terminal report includes a summary of accomplishments and success stories to highlight its achievements. The report provides background information regarding expected results and discusses the challenges encountered on the course of its implementation. Additionally, it outlines the lessons learned and recommendations for possible follow-on initiatives for the said project.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 1

PROJECT BACKGROUND

The Marawi siege has left the entire region devastated – calling for an outright rehabilitation and in- depth development particularly on the power aspect as it is one of the essential needs for community development. Immediate rehabilitation and reconstruction efforts of Marawi City have been overflowing as partners from both local and international communities worked hand-in-hand to restore Marawi’s basic facilities which includes energy. LASURECO, being the prime mover of this project, has been coordinating with concerned government agencies particularly the Department of Energy (DOE) and the USAID B-LEADERS, and has so far shown great development in the area within a short period of time. Earlier rehabilitation efforts on securing energy facilities were undertaken through the Inter-Agency Task Force (IATF) (chaired by DOE) such as the Provincial Capitol, Amai Pakpak Medical Hospital, City Hall, military camps, and the Mindanao State University (MSU), worth noting is the installation of solar-powered street lights in certain communities.

A move to uplift the power sector came just in time considering that the electricity industry in the country needs significant investments that will provide a reliable supply of electricity at reasonable cost – even without the siege.

Funding is anticipated for other projects to be co-implemented with government entities such as the DOE and hopefully with foreign partners involved hoping that livelihood and sustainable financing programs shall be focused on as well. These cascading funding assistance from private and government sectors as well as international aid and foreign investors shall serve as the gateway for the immediate rehabilitation of the area particularly on electricity power supply as well as financing livelihood programs of the affected communities.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 2

PROJECT IMPLEMENTATION PLAN METHODOLOGY

The Project Implementation Plan (PIP) is developed within the framework of the PIP methodology and work plan. The PIP methodology and work plan outlines the rationale and objective of each deliverable, the procedures to be used, activities to be conducted and personnel who shall undertake such activities. Selection of project methodology and the over-all assessment criteria shall include the conduct of site visitations, presentations and meetings with key partners and stakeholders. This aims to provide the entire needed development of a resilient and reliable power supply at reasonable cost. In this regard, management organized a group of experts to discuss associated issues that may hamper the smooth implementation of the entire assessment. The said project shall employ various methodologies and shall attain the following objectives:

Table 1. Project Implementation Plan Methodology

OBJECTIVES AND METHODS AND RESPONSIBLE DESCRIPTION PURPOSE ACTIVITIES PERSON Develop project methodology and Review of the Project Methodology and Project assessment criteria Project Plan Assessment Criteria Consultants consistent with the Project rationale and objectives Address management Conduct of management Project Project Management issues ensuring project presentations, meetings Consultants completion Develop strategies, work Implement strategies, Project Project Implementation schedules and budget reporting and site surveys Consultants Present viable and strategic plan and introduce modern Recommendation/Actio Strengthen Power System Project technologies. n Plan Resiliency Consultants Conduct meetings/presentations and group discussions

In the PIP, consultants will organize teams to visit substations, site and its possible appropriate scenarios, evaluate and analyze the data gathered and its technical, financial and environmental implications within the framework of the project methodology and the selected assessment criteria.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 3

DESCRIPTION OF THE PROJECT

The electricity industry in the Philippines has been under review or on re-structuring since the year 2001, focusing mainly on efficiency improvements. Today’s situation in the country has reached the point where significant investments are required to replace assets that can no longer be maintained or are inadequate in providing the current supply requirements of the consumers. With the aftermath of the Marawi siege, maintaining energy stability and security remains to be the top consideration of the government.

Lanao del Sur Electric Cooperative (LASURECO) will play a vital role in this very important task of maintaining a secure and steady supply of electricity, which is the key requisite to sustain economic growth. The rehabilitation of substations is among the critical parameters that will address the power requirements of the region sustain economic growth in the near future. While there are substations repaired to initially address the power requirement of Marawi City after the siege, there is still a need to fix other existing substations of LASURECO, which could be done gradually depending on the future power requirements of the region.

The reports on the asset valuation of LASURECO’s facilities and equipment are also important to determine further new acquisitions needed for the improvement or future development of energy facilities in the region. As a way forward from the asset valuation and methodology analysis of non- network assets should be considered.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 4

PROJECT OBJECTIVES

The project aims to achieve the following objectives:

1. Determine extent of damage to the power infrastructure leading to the valuation of the electric cooperative; 2. Conduct asset valuation on the equipment to determine how to extend life of the refurbished equipment; 3. Develop alternative scenarios that will increase resilience of the electrical facilities; 4. Assist in the mobilization of government and private funds for restoration of electricity services and provision of potential economic opportunities and community-based livelihood; 5. Provide assistance on data collection to support the study on efficient resource allocation that also accounts for the interaction among water, energy, and land resources in Mindanao; 6. Facilitate discussions in mobilizing government private funds for power restoration and provision of livelihood.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 5

SCOPE OF THE PROJECT AND DELIVERABLES

The following are the deliverables of the project:

1. Conducted a full assessment on the extent of damage to the power infrastructure leading to the valuation of the electric cooperative. a. Actual site visitations/inspections i. Document Inspection Results 1. Substation 2. 69kV Sub-Transmission Lines 3. 13.2kV Distribution Lines ii. Quantify/Assess conditions of: 1. Service Drop Wires 2. Secondary Lines 3. kWh Meters 4. Vegetation iii. Conceptual Plan iv. Inventory of equipment and supplies needed for power restoration and make recommendations on materials in the list whether for replacement, repair, or refurbishment

2. Develop alternative scenarios designed to increase resilience of the following electrical facilities: a. 69kV Sub-transmission lines b. Substations c. Distribution lines d. Smart meters including prepaid meters with advanced communication technologies such as AMR/AMI technologies e. Creation of a one-stop shop provider for power-related concerns for the entire community

3. Mobilized government and private funds to restore electricity services and provide potential economic opportunities as well as community livelihood.

4. Data collection supporting study on efficient resource allocation that accounts for the interaction between water, energy and land resources in Mindanao.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 6

PROJECT METHODOLOGY

The project methodology followed a set of standards widely used by literatures for the assessment of the aftermath of the Marawi siege and how electricity development can cater to the needs of the consumers. The assessment of the criteria was done by incorporating existing circumstances, including the current and emerging trends in modern technology, existing legislations and other factors such as local costs associated with the development and utilization of the project.

The assessment criteria started with site visitations, the assessment of the available materials for refurbishment or repair, and the determination of the available equipment’s workability life. Moreover, the assessment also provided a list of needed materials and the required necessary improvements in order to develop an efficient power supply for the entire region with improved energy resilience. The alternative scenarios which were presented in this project aim to increase power resilience in the area, these included recommendations for the improvement of the 69kV sub-transmission lines and 13.2kV distribution lines, substations and their control components, smart meter technologies, Supervisory Control and Data Acquisition (SCADA) and other modern technologies to enhance LASURECO’s performance.

As a part of the project’s deliverables, a rundown of activities set to be implemented by the government and private entities in relation to electricity power maintenance – including vegetation trimming and other community-based measures and programs are likewise documented and presented. These projects are anticipated to provide livelihood opportunities for residents in the community.

The Philippine Government’s advocacy for “green power” through other renewable energy sources such as hydroelectric power and solar power are also considered – especially that the area has abundant resources and viable locations for the installation of such facilities. The installation of the potential hydroelectric sites could be utilized for power generation, irrigation and water supply with the Bahay Pag-asa 1priority site. Technical assistance on data gathering from all relevant sources will likewise further aid in the development the entire region.

It is important to note that the over-all objectives of the project for LASURECO are to: a.) provide an efficient top-of-the-line service to its consumers through developing LASURECO to a world-class or 21st Century Smart Power Distribution Utility and b.) develop a valuable database that is useful to energy policy makers and energy developers in terms of the utilization of the hydropower resources.

1 Bahay Pag-asa or Houses of Hope were built to provide immediate shelter and accommodation for the affected residents of the Marawi crisis. This project was built upon the by the Chinese Filipino Business Club, whose top officers donated the house project to President Rodrigo R. Duterte. Source: https://www.pressreader.com/philippines/manila-bulletin/20171029/282089162026372

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 7

SELECTED ASSESSMENT CRITERIA

The sites considered in this study are focused on substations and the refurbished materials and equipment, which are for rehabilitation/repair. The assessment of the condition of the 69kV sub- transmission lines and 13.2kV distribution lines are also included in this study. For viability, it is aimed that the assessed sites be further reviewed to provide an efficient performance and uninterrupted power supply. The provision of electrical equipment and line hardware is necessary for the rehabilitation of power sources. Moreover, the alternative scenarios provided in the report aim to increase the power system resilience of LASURECO.

SUBSTATION AND LINE CAPACITY

The site visitations conducted were significant in assessing the needs for the possible rehabilitation of the lines and substations vis-a-vis the effects on the power supply requirement of the region. This activity also assisted in determining power capacity needed in the area. However, the data needed for this activity should have included statistics on the number of consumers and the respective average consumption. With that being said, data gathering is necessary to consider the feasibility of rehabilitating LASURECO’s substations. This could be done once the total needed power requirement data is already in place.

EXISTING INFRASTRUCTURE

In calculating the economic viability of rehabilitating a substation, its proximity to the existing grid is one of the important factors considered. Capital expenditures are a crucial factor considered in rehabilitating and/or installing new substations depending on a specific period and the load growth in the area. However, delaying the necessary improvements or installations of infrastructures will affect the electric cooperative’s operations and the efficiency of the power supply. Another contributory factor to consider would be the different outage scenarios that would be experienced in the area.

Adopting modern technologies such as SCADA should also be seriously considered as this will assist LASURECO in efficiently monitoring its power supply to consumers in the area even without personnel manning the area.

ECONOMIC AND FINANCIAL ASPECTS

The economics of all existing substation rehabilitation is one of the main assessment factors considered to decide if these activities will be implemented or if another option to provide power coming from other existing substations will be adopted. It is interesting to note that the entry of donations in the entire region are sufficient enough in helping address the electricity requirements once rehabilitation is to be fully implemented. With this, more donations are encouraged to come in that will address the financial aspects of the regional uplift and the subsequent development of all parameters.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 8

PROJECT IMPLEMENTATION SCHEDULE

Table 2. Project Implementation Schedule

DELIVERABLE April May June August November

Submission of Work plan

Progress Report #01: Site visitations and documentation; Materials management inventory

Progress Report #02: Alternative Scenarios designed to improve resilience of the electrical facilities; data collection on item #05

Progress Report #03: Mobilization of public and private funds Terminal Report

PERFORMANCE MANAGEMENT FRAMEWORK

Table 3. Performance Management Framework RESPONSIBILITY DELIVERABLE ACTIVITIES PERFORMANCE /PERSONS INVOLVED Conduct of Determination of Work Plan Meetings Local Project Personnel Deliverable Preparation Sharing of ideas Verification of sites, Site visitations and Verification Reports inspection and Local Project Personnel documentations, determination of Project Consultants materials management Presentations and Meetings materials status Alternative scenarios designed to improve Evaluation Report Surveys, evaluation Project Consultants resilience of the electrical and analysis facilities/Assist Data Draw Collection recommendations/proposals

Evaluation Report Mobilization of Private Surveys and Project Consultants and public funds coordination Draw recommendations and proposals Compilation and submission of Terminal Reporting Finalize Report Project Consultants report

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 9

DELIVERABLE NO. 1

OVERVIEW/RATIONALE: Full assessment on the extent of damage to the power infrastructure leading to the valuation of the electric cooperative.

To accelerate the power restoration in Marawi City and help in the wise investment of government resources, the B-LEADERS, in partnership with key national/subnational and local government partners, carried out a number of activities that assessed the damages caused by the siege and other interventions that affects the performance of power facilities.

As part of assessing the extent of damages to power infrastructures in Marawi before and after the siege, the project team conducted a series of site visitations in three (3) different substations within the LASURECO franchise area, namely the Dansalan, Ganassi, and Malabang substations. Observations and recommendations for the mentioned substations are provided below.

GROUND ZERO – MOST AFFECTED AREA (MAA)

The project team conducted site visitation last March 8, 2018 in Ground Zero which is the Most Affected Area (MAA) of the Marawi siege with representatives from the B-LEADERS and DOE Assistant Secretary Redentor Delola. This leads to the formulation of observations on the extent of its damage particularly on the energy sector of the city.

With this scenario, cost rehabilitation of MAA is expected to adopt a zero base approach and would need in-depth planning from the basics for the development of the city to a globally competitive community. This move is more appropriate than rehabilitating what is left after the siege. The very hindrance to formulate the plan is the provision of funding in order to apply the in-depth planning to a reality.

Figure 1. Actual Ground Zero Scenario After the Siege (Photo taken March 8, 2018)

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 10

ASSESSMENT AND RECOMMENDATIONS FOR THE REHABILITATION OF THE SUBSTATIONS: DANSALAN, GANASSI AND MALABANG

*Exact location points of substations (using longitude and latitude access)

Dansalan SS (8.013601, 124.276447) - lies near Marawi City and the New Capitol Complex

Ganassi SS (7.825654, 124.083599) – 40km away from the city and will serve the rural areas of Ganassi and

Malabang SS (7.605368, 124.077042) – 33km away from Ganassi and will serve the rural areas of Malabang, Picong, and

Figure 2. Map illustrating location of LASURECO substations

Figure 3. New Single Line Diagram of LASURECO New Single Line Diagram Rehabilitated Substations – Dansalan, Ganassi and Malabang

Legend:

Dansalan substation – the only SS supplying power even during the siege (7.5MVA and 40MVA)

Ganassi Substation (10MVA) and Malabang Substation (2 x 5 MVA) – energized in May 10, 2018

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 11

DANSALAN SUBSTATION (7.5MVA AND 40MVA)

A. 7.5MVA Substation

Figure 4. 7.5MVA power transformer in Dansalan substation, photo taken April 10, 2018

A visit to the Dansalan substation was conducted last April 10, 2018 and a visit for the Ganassi and Malabang substations done the following day. Site visitations on these dates included the inspection of the 69kV sub-transmission lines and 13.8kV distribution lines. One feeder of the Dansalan substation 7.5MVA runs in the areas of , and the other feeder runs in the areas of Madalum and Ganassi. Currently, the feeder length is approximately 30km, and the conductors used are as follows:

 Main line - 4/0 ACSR  Lateral Lines – 2/0 ACSR

Voltage Drop Simulation Result (Computed using spreadsheet)

Table 4. Voltage drop simulation result for the Dansalan substation 2/0 ACSR 4/0 ACSR Load, kW Length, Km %VR Sec. Voltage %VR Sec.Voltage 1000 30 25.06% 176V 16.92% 188V 500 30 9.62% 200V 7.08% 205V

As shown simulation result above using 4/0 ACSR, it did not pass the standard of ±10% voltage drop for distribution utilities of 1000kW load. To qualify, the secondary voltage should be between 198V and 242V. At 500kW load, the secondary voltage passes the requirement.

For the lateral lines, both 2/0 and 4/0 ACSR failed to qualify the standard requirement for 1000kW Load-end side. Thus, it is recommended that the voltage drop issue should be addressed.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 12

Existing Installed Main Equipment:

 69kV Gang-Operated Air Break Switch (GOABS)  Surge Arresters (SA)  Power Fuse  Transformer 7.5MVA 69/13.2kV DELTA- Wye Ground  13.2kV Reclosers | 1 - Main; 2-Feeders

Figure 5. Existing Installed Main Equipment in Dansalan Substation Observations:

It was observed that there was no 69kV circuit breaker installed. Further, the substation is only using a power fuse and that system installation is substandard (jumpered installation). The feeder supplying the 40kms of distribution line up to Ganassi Sub Station. The phase1 lines were over extended which resulted to an unbalanced current.

Figure 6. Observations in the Dansalan 7.5MVA Substation, photo taken April 10, 2018

Recommendations and Expected Results:

Since the substation has a substandard or “jumpered” connection, a replacement or an installation of a power fuse (7.5MVA 69kV) is needed. The installation of a power fuse shall regulate power surge and avoid damage of the equipment.

With the energization of Dansalan, issues on power voltage of the other two (2) substations will be addressed. Power distribution of the Dansalan substation is expected to level off and will be technically prepared for new innovations.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 13 Figure 7. Dansalan Substation with Installed Figure 8. 40MVA Substation in Dansalan, Photo taken Equipment, Photo taken April 11, 2018 April 10, 2018

B. 40MVA Dansalan Substation

Existing Installed Major Equipment:

 69kV Gang Operated Air Break Switch (GOABS)  Surge Arrester  Sulfur Hexaflouride (SF6) Circuit Breaker  Transformer - 40MVA 69/13.2kv DELTA-Wye Ground  Recloser - 4 Feeders

Observations:

It was observed that one of the transformers in the Dansalan substation was experiencing an oil leakage. If the causes behind this will not be addressed, it may lead to serious damage of the equipment. Moreover, the main secondary cable installed is at 13.2kV with no protection installed in the cable.

Figure 10. Transformer Oil Leaking, Photo taken Figure 9. 13.2kV Main Secondary Cable Ampacity April 10, 2018 using only 2 x 350MCM XLPE Cable

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 14

Recommendations and Expected Results:

To addres these issues, there is a need to test the extent of oil leakage and to replace or repair the gasket. The servicing/“re-gasketing” of the transformer will help improve its functionality and reliability to control voltage changes of electricity travelling in the circuit. Conditioned transformers can also efficiently function - particularly increasing and decreasing power voltage flow within the substation.

Moreover, there is a need to add or replace 1-500MCM Cross-linked Polyethylene (XLPE) cable 5m/phase to increase the ampacity of the main secondary line from 15MVA to 26MVA (see Figure 12). Lines should also be insulated to protect it from rodents and environmental hazards such as vegetation, lightning, and flooding – helping ensure the reliability of the power system. Load capacity is also expected to be at its best with the addition of 1-500MCM cable which will also address vegetation trimming activities and lessen power outage.

The replacement of the base structure for 13.2kV main cable entails initial investment but its results will go a long way in terms of a reliable/resilient power supply. This will also address perennial problems of most cooperatives such as the reduction of system losses to a bare minimum within the standard of cooperatives. LASURECO, the electric cooperatives is also urged to invest on the latest smart technologies. The return of investment that can be provided by the stakeholders (businesses, general consumers) with the cooperative’s efficient service will allow the purchase modern technology equipment to be realized as soon as possible.

Figure 11. (Left) Suggested Base Structure for 13.2kV Main Cable and (Right) the 500 MCM XLPE cable donated by DLPC to LASURECO

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 15

GANASSI SUBSTATION (10MVA)

The Ganassi substation is situated 40 kms. away from Marawi city and is serving the rural areas of Ganassi and Madalum.

Figure 12. Photos of Ganassi Substation, taken April 11, 2018 Voltage Drop Simulation Result (Computed using spreadsheet)

Over-extended feeders result to system losses; the shortening of feeder lines is recommended to address this issue. With the energization of the Ganassi Substation, voltage concern qualification of 7.5MVA feeder line of Dansalan Sub Station is expected to be addressed considering the feeder line will be shortened from 30kms to 20kms. The secondary voltage passed the voltage drop standard for distribution utilities using 20kms of 4/0 ACSR at 1000 and 500kW load. For lateral lines, bigger loads of 1000kW at load ends failed the standard requirement; only a 500kW load is ideal at the end side of the line to qualify.

Table 5. Voltage Drop Simulation Result for the Ganassi Substation 2/0 ACSR 4/0 ACSR Load, kW Length, Km %VR Sec. Voltage %VR Sec.Voltage 1000 20 13.84% 193V 9.96% 200V 500 20 6.00% 207V 4.49% 211V

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 16

Existing Installed Major Equipment:

 69kV GOABS  Surge Arrester  Voltage Transformer (VT)  Current Transformer (CT)  SF6 Circuit Breaker (CB)  Transformer 10MVA 69/13.2kv DELTA-Wye Ground  Recloser o Main o 2 Feeders Observations:

 Newly acquired substation equipment i.e. GOABS, Surge Arresters, Current Transformers, Voltage Transformers and 69kV SF6 Circuit Breaker will improve the voltage regulation on outlying municipalities.  Control Circuit and Relay settings for installation.  The designs has passed Minimum Standard.

Recommendations:

 Enclose the entire substation with perimeter fence for security/safety.  Vegetation and grass pruning should be maintained.

Expected Results:

 An enclosed/fenced substation is an assurance of safety and security and will reduce the risks of any third-party intervention such as burglary and terroristic activities. Regular vegetation and grass pruning shall address power outages.

 These recommendations will also address perennial problems of most cooperatives such as the reduction of losses to a bare minimum within the standard. More so, the cooperative/LASURECO is recommended to invest on the latest smart technologies. The return of investment that can be provided by the stakeholders (businesses, general consumers) with the cooperative’s efficient service will allow the purchase of modern technology equipment to be realized as soon as possible.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 17

MALABANG SUBSTATION (2 X 5MVA)

Figure 13. Inside the Malabang Substation with the Recloser in View, Photo taken April 11, 2018 The Malabang substation is located 3km away from Ganassi and is expected to serve the rural areas of Malabang, Picong and Marogong. Voltage Drop Simulation Result (Computed using spreadsheet)

Table 6. Voltage Drop Simulation Results for the Malabang Substation 2/0 ACSR 4/0 ACSR Load, kW Length, Km %VR Sec. Voltage %VR Sec.Voltage 1000 10 6.00% 207V 4.49% 211V 500 10 2.82% 214V 2.14% 215V

Load from the Malabang substation serves its adjacent rural areas, as noted in the figures above, with its main feeder 4/0 ACSR lines, these can be extended up to 10km and 20km which also passed the standard requirement even at 1000 and 500 kW loads at the end side of the line. Moreover, the 10km of 2/0 lateral lines also passed the standard requirement. Existing Installed Major Equipment:

 69kV Gang Operated Air Brake Switch (GOABS) Surge Arrester  Voltage Transformer  Current Transformer  SF6 Circuit Breaker  Transformer 5MVA 69/13.2kv DELTA-Wye Ground  Recloser

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 18

Photos of Newly Installed Equipment:

Figure 14. Newly Installed Equipment in the Malabang Substation. Recloser (left) and On Load Tap Changer (Right) A recloser, as seen above will automatically restore power during momentary interruptions caused by sudden power faults. The on load tap changer (OLTC) on the other hand will correct the voltage output in cases of voltage distortions. Observations:

 Newly acquired substation equipment i.e. GOABS, SA, CT, VT and 69kV SF6 CB will improve voltage regulation on outlying municipalities  Transformer 2 has an OLTC  OLTC in one 5MVA unit is being isolated  Ongoing installation/bus works, testing and commissioning  Design has passed minimum standard

Recommendations and Expected Results:

The newly acquired equipment is expected to improve the power resilience and provide the efficient power supply within the franchise area. The repair of the perimeter fences will keep the substation equipment safe from burglary and other terroristic activities.

Before the final rehabilitation of the above-mentioned substations, a thorough study of all parameters and effects were analyzed by LASURECO and resulted to a decision of rehabilitating three (3) substations to supply power with an option to rehabilitate or construct another substation depending on load demand. Further, it was decided that some of the equipment from the other substations will be transferred and installed in the three (3) substations to make it operable, which would mean other substations if decided to be energized budget on materials will start with zero option.

With the operation of the three (3) substations, voltage drop concerns will be addressed and would provide efficient services in most major parts of Lanao del Sur and the franchise areas of LASURECO. However, to achieve desired power efficiency, some concerns should be considered. The needed materials to address these concerns can be acquired through donations.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 19

OVER-ALL FINDINGS FOR THE SUBSTATIONS

Table 7. Over-all Findings for the Substations SUBSTATION DANSALAN GANASSI MALABANG Overcurrent and Overcurrent and Overcurrent and Protection Scheme Earth Fault Only Earth Fault Only Earth Fault Only Availability of Internet Strong Signal No Signal No Signal Signal Breaker Availability SF6 Dead SF6 Live Tank SF6 Live Tank (High Voltage) Tank/Power Fuse Breaker Availability No Recloser Recloser (Low Voltage) Protection/Recloser Method of Local Local Local Monitoring/SCADA GPS Location 7.825654, 124.083599 7.825654, 124.083599 7.605368, 124.077042 OVER-ALL FINDINGS OF THE SUB-TRANSMISSION LINES 69KV SUB-TRANSMISSION LINES

Figure 15. 69kV Sub-transmission Line Connecting the Ganassi Substation, Photo taken April 11, 2018

Figure 16. 69kV Sub-transmission Line Connecting the Malabang Substation, Photo taken April 11, 2018

Figure 17. 69kV Sub-transmission Line Connecting the Dansalan Substation, Photo taken April 10, 2018

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 20

Observations:

There are no major discrepancies noted on the 69kV line within the energized area, although vegetation is sighted which needs constant trimming and management. Quantify/Assess conditions:

 Type of service entrance: o Service drop wires – wires from the 240V secondary lines direct to the consumers’ kWh meter o Meter on poles – wires from the240V secondary lines direct to meters stationed on poles then wires extended to consumers. In the absence of concrete data, it is presumed sharing will be 50-50 for both service entrance type o Secondary lines – condition still acceptable but needs vegetation or trees/bushes trimming operation. o kWh meters – still on workable condition but converting to smart/pre-paid meter will be an advantage o Vegetation – needs trimming activities to prune trees and bushes

The National Grid Corporation of the Philippines (NGCP) owns the 2.17km 69kV sub-transmission line serving the Dansalan substation and 54.3km line which is serving MSU, the Ganassi and Malabang substations, which total to 56.47km. LASURECO currently only owns 16.1km of the lines which serve MSU, the Ganassi and Malabang substations. The purchase of the LASURECO-owned line was funded through general funding initiated by LASURECO’s previous management. An option to purchase the remaining line serving LASURECO is under further study.

The total replacement cost of the 56.47km 69kV sub-transmission line owned by NGCP along the Dansalan, MSU, Ganassi and Malabang substations is Php 56, 470,000.00. This is based on the offered cost of Php 1, 000,000.00/km. For LASURECO, the total cost is at Php 43, 154,201.55 for the 16.1km stretch based on the replacement cost at Php 2, 680,385.19/km. The table below summarizes the costs needed for the replacements:

Table 8. Costs Needed for the Replacement of Sub-transmission Lines 69 KV Transmission Lines (LASURECO AND NGCP) Line Length (km) Total Cost Cost of the Line Cost per km Length per km NGCP LASURECO (Replacement) NGCP LASURECO (km) (Offer) 69kV Line Serving Dansalan 2.17 0 2.17 Php 2,170,000 Php 0.00 Substation Php 69kV Line Php 1,000,000 Serving MSU, 2,680,385.19 .00 Php Php Ganassi, and 54.3 16.1 70.4 54,300,000 43,154,201.55 Malabang Substations Php Php TOTAL 56,470,000.00 43,154,201.55

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 21

Recommendations and Expected Results:

The purchase of the 69kV line presently owned by NGCP shall promote income generation for the cooperative thus partly addressing its financial problem. Vegetation trimming should be properly observed to minimize power outages. Moreover, vegetation trimming and management could also provide job opportunities to residents in nearby areas. 13.2KV DISTRIBUTION LINES

Figure 18. 13.2kV Distribution Line Connected to Consumers with Meters on the Pole Observations:

 Ground Zero or MAA – Needs to be rehabilitated at zero base cost  13.2kV distribution lines within the energized area o Needs trimming activities to prune trees and bushes o Needs to be rehabilitated i.e. sagging wires/dilapidated poles  kWh Meters – these are still in workable condition but converting the meters to smart meters is of advantage o Meter on poles – wires from the240V secondary lines direct to meters stationed on poles then wires extended to consumers. In the absence of a concrete data, it is presumed sharing will be 50-50 for both service entrance type o Secondary lines – condition still acceptable but needs vegetation or trees/bushes trimming operation. o kWh Meters – still on workable condition but converting to smart/pre-paid meter will be an advantage Recommendations:

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 22

The installations should follow standard operating procedures (SOP) with the provision of load break switches and reclosers with SCADA connection in place for the system to run smoothly and thus be able to detect in case it is not operating correctly. The system will handle the immediate adjustments/corrections without the need for human intervention, on top of this, the monitoring advantage of substations with even less manpower but definitely efficient power supply services to consumers. Figure 19. Distribution System with Self-healing Capabilities 2

 The ’s MAA should be done immediately; this is part of the plan to develop the region to be globally competitive.  Vegetation maintenance of distribution lines should be prioritized to include secondary lines.  Wires sagging/dilapidated poles should be positioned on the top as a priority.  The installation of kWh meters on poles should be implemented in all areas.  Conduct conversion of kWh meters from conventional to electronic, another options is the adoption of a prepaid metering technologies.

Expected Results:

 The rehabilitation of Marawi’s MAA would develop not only the region but entire country.  Maintaining vegetation to its acceptable level not only provides an efficient power supply but also creates livelihood opportunities for the community.  Line maintenance monitoring will provide an efficient power supply and reduce, if not eliminate power outages.  The installation of meters on poles directive if fully implemented will eliminate losses due to meter tampering and the like. This would increase the income revenue for the cooperative.  Conversion of kWh meters will entail huge investment however would benefit the cooperative through the increase in its revenue drive, especially if prepaid metering will be fully explained to the community to be appreciated.

Moving forward, load/demand forecasting is necessary to balance effects of economic development. However, with demand forecasting, future load demand risk effects should be conservatively taken into consideration to cushion over forecasting scenarios.

2 Photo source: Visayan Electric Company (VECO)

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 23

ASSET VALUATION

The asset valuation on the existing and available property and equipment of LASURECO is mainly considered in this report for planning and funding purposes. Even in the past years, most power provider cooperatives experience the ageing of their infrastructure. LASURECO is not an exception to this reality. Such conditions affect the efficiency gains of the cooperative and as such, investment in the electricity infrastructure both for transmission and distribution is needed. If proper management of these infrastructures are done, this would increase the reliability of LASURECO for the consumers as well as provide an efficient and continuous electricity supply.

So far, the inventory of non-network assets of LASURECO after the siege is still unavailable but it is expected to incur big numbers to address the cooperative’s current operational needs. The data required to conduct the complete valuation process is currently unavailable due to the siege, thus, the need to conduct a separate study and data gathering to address such concerns.

The alternative scenarios discussed in this paper are highly significant as these would ensure the continual recovery and development of LASURECO. It is expected that the final output of the project centers in assisting data collection on the studies and initiatives from private and government sectors particularly the DOE, the Mindanao Development Authority (MinDA), the Department of Agriculture (DA) and other government/private entities.

SUMMARY OF THE ASSETS VALUATION FOR LASURECO Table 9. Summary of the Asset Valuation for LASURECO SUMMARY Description Percentage to the Amount (in Php) Total Asset Valuation 69kV Sub-transmission Lines 43,154,201.55 6.20% Substations, Existing Facilities, and 192,254,465.39 27.64% Equipment 13.2kV Distribution Lines 208,916,997.21 30.04% (Backbone and Laterals) Secondary Lines 8,155,176.69 1.17% Metering/Service Connections 94,962,480.48 13.65% Distribution Transformers 139,410,026.80 20.04% Substation Real Estate Property 8,640,000.00 1.24% Costs Total Replacement Cost of 695,493,348.12 Assets Total 69kV Sub-Transmission Line 100% 56,470,000.00 Offered to NGCP GRAND TOTAL 751,963,648.12

The costing reported is the total valuation of LASURECO’s existing major property and equipment, labor excluded. This list did not include the costs for future plans and projects, nor the modernization of LASURECO to attain ideal System Average Interruption Duration Index (SAIDI)/System Average

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 24

Interruption Frequency Index (SAIFI) standards to enhance LASURECO to a world class or 21st century smart power distribution utility with self-healing capability on its feeders with online monitoring capabilities of substations under distribution automation and substation automation platforms respectively. The non-network assets inventory is still to be worked out and should be determined by LASURECO for proper costing. The conduct of further studies is recommended to provide actual an inventory so the valuation of their non-network assets could be concretized. The details of the power asset valuation is discussed in Annex A of this report. Observations:

There is a need to conduct further study to determine LASURECO’s assets to include non- network including power systems which is currently unavailable. Recommendations and Expected Results:

A thorough study of the cooperative’s over-all asset should be conducted as this will allow a concrete decision on the utilization of its assets.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 25

DELIVERABLE NO. 2

OVERVIEW/ RATIONALE: Alternative scenarios designed to improve the resilience of electrical facilities; Data collection on study of efficient resource allocation that accounts to the interaction of resources in Mindanao with the existing equipment or facilities.

Activities/Recommendations/Expected Result:

PRESENTATION OF ALTERNATIVE SCENARIO WITH DOE and LASURECO July 19, 2018 | Sunburst, City In photo (Left to Right): Jules Algabre, Red Delola, Bang Chingcuanco, Representatives from LASURECO, Jun Cubos Figure 20. Presentation of Alternative Scenarios before the representatives of DOE and LASURECO

Another presentation was conducted with USAID and LASURECO headed by GM Nordjiana Ducol held last August 2-3, 2018 in USAID B-LEADERS Office in City.

Figure 21. Presentation of Alternative Scenarios before the representatives of LASURECO and USAID, Photo taken August 3, 2018

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 26

ALTERNATIVE SCENARIOS DESIGNED TO INCREASE RESILIENCE

Moving forward, for LASURECO to be developed into a world-class or 21st century smart distribution utility with self-healing capability on its feeders, the following alternatives are proposed to be undertaken for the development of the region: 69KV AND 13.2KV SYSTEM LOOP READY

Figure 22. 69kV Sub-Transmission Line3

In the event of a power shutdown, the entire franchise area will experience a total power outage, which is very crucial especially in an area wherein peace and order/security is at stake. Existing Radially Operated System – Existing LASURECO Substation Setup in all Substations

Figure 23. Typical Substation Setup

3 Photo source: http//electricalstandards.blogspot.com/2016/16

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 27

Figure 24. Typical Substation Setup Diagram With the above set-up, power from the 69kV line will pass thru the disconnect switch down to the circuit breaker and step down to the 13.2kV power transformer. If and when a scheduled (PMS – Preventive Maintenance Servicing) or unscheduled power interruption (caused by technical malfunction, man-made terroristic activities or acts of God) will occur, this could lead to loss of power supply in the entire area particularly during unscheduled interruptions.

To arrest this scenario, for scheduled PMS interruptions, LASURECO can opt to determine areas wherein they should supply power continuously. However, this process has to be planned thoroughly, the tendency is power will emanate from other substations in which in this case, supply has to be distributed proportionately and a concrete well planned option has to be seriously considered before final implementation so as not to sacrifice areas which require 24/7 or continuous power supply.

To attain 24/7 ready uninterrupted power supply, it is recommended to adopt RADIALLY OPERATED-LOOP READY option.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 28

Radially-Operated, Loop Ready

Figure 25. Radially-Operated, Loop Ready Substation Setup

Under this option, if and when power interruptions will occur, there will be Automatic Load Transfers (ATF) to automatically handle the transfer of power through lines resulting to zero-power interruption as discussed above. The only vital factor to consider with this is the financial aspect, however, this could be addressed by passing on the cost to the consumers considering they are the ultimate victim of the power interruption. A community engagement or a public dialogue should be conducted for the consumers to understand how the arrangement would work and the ultimate benefit they will experience from a continuous power supply.

These communication efforts could serve as an initial move to encourage consumers to pay their bills on time. This would hopefully lessen, if not eliminate the perennial problem of electricity bill collection in the region

69kV Loop-Ready sub-transmission system A new 69kV line costs from another source:

a) 69kV line investment cost along the road (8.5km at P3.3M/km) = Php 28 M b) 69 kV Circuit Breakers & Protection = Php 14 Million

LASURECO has purchased a portion of NGCP’s 69kV sub-transmission line and has enjoyed partial savings but if the entire 69kV sub-transmission line will be purchased from NGCP, LASURECO will be able to save the amount on charges they are currently paying monthly to NGCP. Savings could be translated to the return on investments for the purchase of the remaining NGCP sub-transmission lines with LASURECO as the sole user. Another sub-transmission line to be constructed would mean alternate sub-transmission lines for the continuous supply of power if one sub-transmission line fails. This follows the N-1 criterion.4

4 The N-1 Criterion is a criterion where the Grid, following a credible contingency event is required to be capable to operate within certain minimum performance. (source: erc.gov.ph)

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 29

Initial estimated cost for the purchase of NGCP’s existing 69kV line is at Php 1 Million/km or a total of Php 57 Million for the 56.47km line.

A Php 42 Million investment for the construction of another 69kV line complete with corresponding protection equipment and P3M for the loop-ready system of 13.2kV line would mean improved system reliability in case power from one 69kV line fails. The system can immediately switch to another line thus be assured of continuous power supply. With the total investment cost for the 69kV and 13.2kV loop ready system and the cost of existing NGCP 69kV line, this will be liquidated thru the ownership of the lines which would mean no more sub-transmission line charges onwards & improved customer satisfaction due to continuous power supply and eventual load growth and more income for LASURECO.

Figure 26. Automatic Load Transfer Diagram5 Expected Results:

This device will allow an automatic load transfer in the event that a power interruption will occur for the consumers to enjoy a no interruption experiences. However, initially considering the cost involved with this, it is suggested that the Automatic Load Transfer (ALT) option be implemented in areas with high load power demand.

Total cost for the loop-ready installation could be passed on to consumers however as mentioned earlier, this needs community or public consultation with all affected residents/consumers

5 Photo source: https://www.etap.com/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 30

INSTALLATION OF NETS, CCTV, BLAST WALLS TO ENSURE SECURITY AND MAINTENANCE

This is the typical substation setup of which the existing LASURECO substations are similarly patterned to. This substation does not have any reliable documentation/protection in case of the occurrence of unforeseen events either as human induced or naturally caused disasters.

Figure 27. Substation Diagram6

To improve conditions in Marawi, continuity of rehabilitation process should be considered, and it is recommended to implement the rehabilitation of the Dansalan, Ganassi, and Malabang substations.

Figure 28. Image of a Substation in Davao City Figure 29. Illustration of Blast Walls7 Expected Results:

An initial investment of Php 1 Million will result to the following benefits for the community: 1. Perimeter Protection Net - substation protection against possible terrorist attacks 2. CCTV – 24/7 security monitoring of the entire substation 3. Blast Walls – protection from further damage of equipment and people in case of a blasting scenario due to fire &/or man-made acts.

6 Photo source: https://powerplantmen.wordpress.com/2017/12/14/switching-in-the-power-plant-substation- switchyard-3/ 7 Photo source: http://www.penta.ca/products-blog/blast-walls-and-fire-protectionSubstation

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 31

USE OF MOBILE SUBSTATION

Figure 30. Mobile Substation with Complete Equipment within the Low-bed Trailer8

With an investment cost of Php 22 Million, acquiring a mobile substation will provide LASURECO with the capability to immediately respond during emergencies, instances of power interruption or during prolonged substation maintenance especially in areas which need a continuous power supply. LASURECO is exploring the possibilities of acquiring this very important equipment and its accessories thru donations, which would entail less investment costs. TREE-WIRE INSTALLATION OR INSULATED/PROTECTIVE COATED WIRE

Figure 31. Installation of Tree Wires in Problematic Areas

Replace existing wire connections with tree wires/insulated protective layering. Considering the cost involved for this option, it is recommend to initially implement this for ten percent (10%) of the problematic areas.

8 Photo source: https://www.transformers-magazine.com/tm-news/2599-siemens-to-deliver-ten-transformers-for- mobile-substations-in-iraq-power.html

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 32

SUBSTATION END-USER S

Tree (Insulated) Wire Costs:

 4/0 ACSR 380A ampacity  Including neutral line  Php 3.3 Million per circuit km  Total Investment Cost - Php 7 Million Expected Results:

Installation of insulated or coated wires shall pose budgetary requirements, however in order to protect such investments the installation of such would later on be more cost-efficient. With the installation of tree (insulated) wires for even just the problematic areas or will improve the power resiliency in the region, particularly in regards to reducing the occurrence of outage scenarios.  Considering the long stretch of overhead distribution lines, it is proposed that LASURECO convert only the 10% problematic areas within its franchise area. This would entail a cost of Php 7 Million investment for the purchase of tree (insulated) wires for areas where overhead lines are exposed to vegetation problems and wherein permission to trim vegetation is a problem with owners/stakeholders: 1. This eliminates outages due to vegetation causing transient faults; 2. The replacement cost is long term; 3. This will aide if line maintenance is not on scheduled time followed/observed, especially in problematic areas; 4. Provides improved safety to line workers and the general public working near energized line

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 33

UNDERGROUND DISTRIBUTION SYSTEM

Figure 32. First Underground Distribution System in Davao City9 Underground Distribution System at MAA of Marawi City

 Distance to be covered is estimated at 2km  6 - 500kVA pad-mounted transformers  4 – Load Bearing Switch (LBS) pad-mounted  2 - Reclosers (over-head)  Total Investment Cost - Php 130 Million

Expected Results:

Investment cost will initially involve Php 130 Million for 2km of underground distribution systems (UDS) for the MAA of Marawi City. Overhead distribution lines around the perimeter of MAA in Marawi will supply the transformers and distribute power through underground secondary systems then to the load centers and customers. The installation of UDS will bear the following benefits:  Clean environment & improved aesthetics for commuters and the public;  Less tendency to be affected by lightning strikes;  Eliminate vegetation problems or tree trimming maintenance;  Improved aesthetics/tourist attraction and added safety for the general public;

9 Photo source: https://aboitizpower.com/article/davao-light-completes-first-underground-distribution-system-makes- araw-ng-davao-celebration-festive/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 34

INSTALLATION OF SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA)

Figure 33. SCADA Control Room10

Figure 34. SCADA Flow11

Total Investment Cost for the Installation of SCADA = Php 27 Million Expected Results:

An investment on SCADA worth Php 27 Million would include the following communication infrastructure, which would be using WiMAx technology and could result to the following improvements/benefits for the cooperative:  Improvement of the power system efficiency;  Capability to better manage power demand;  Continuous condition monitoring or controlling of the substations, feeders and loading;  Capability for trending, alarming and recording/logging of events;  Direct interaction with human machine interference (HMI)

10 Photo source: https://constanttech.com/gallery 11 Photo source: http://www.microlabprogetti.com/sectors/energy/?lang=en http://altaoakridge.com/block-diagram- of-wireless-power-transmission/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 35

GEOGRAPHICAL INFORMATION SYSTEM (GIS)

Figure 35. Illustration of Geographic Information Systems12

Geographical Information Systems integrate hardware, software and data for capturing, managing, analyzing and displaying all forms of geographically referenced information. Specific Functions:

1. Data Management 2. Planning and Analysis 3. Workforce Automation 4. Situational Awareness

Expected Result:

The Php 5 Million investment on automated mapping and facilities management or GIS will have the following benefits:

 Attain faster customer services;  Easy tracking of customers’ location through geo-tagging and GPS technology;  Improved facilities management during outages or emergencies especially repairs/replacement of equipment;  Help reduce system loss through easy customers’ location in case of pilferages and cut for non-payment cases

Improved asset (poles, lines, transformers or both network & non-network) management for possible rates increase petition to ERC. Distribution poles were donated and materialized last November 8, 2018.

12 Photo source: https://gisgeography.com/what-gis-geographic-information-systems/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 36

SMART METERS AND ITS ADVANTAGES

Figure 36. Illustration of Conventional and a Smart Meter, Photo taken May 30, 2018

Findings and Recommendations:

Table 10. Comparison between a Conventional and Smart Meter

Conventional Smart Weight 134 kg 100 kg

Reading Manlift+camera Remote Disconnection Manlift Remote Pilferage Detection (Data) Periodic Real Time Inspection with Pilferage Detection (Tampering) Real Time Manlift Overload Protection CB per column CB per Column Conventional Meter – This would require a staff from the electric cooperative to read/inspect the meter periodically or every 30 days entailing additional costs for manpower/labor. Smart Meter – Communication with the smart meter is operational through a database system, which would perform automated meter readings. Advantages of Installing a Smart Meter

If LASURECO would install this advanced metering infrastructure, smart meters could eliminate if not reduce or address non-payment or collection problems, provide accurate meter reading whether done remotely or during actual site visits, prevent overloading, experience less disconnection and ease of reconnection, notify possible shortage or power outage, and provide a quantitative and qualitative data on power load, demands and output. In effect, using smart meters will reduce LASURECO’s system loss say, from 30% to 12%, or with a savings of 18%. With 30MW peak load, at 60% load factor, these savings will mean that investments will be recovered in 11.8 months or less than a year at a distribution rate of Php 6.00/kWh.

Smart meters are more cost-effective, especially in terms of manpower and labor. It would provide a more accurate meter reading and can generate remote and real time reports on losses. This would

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 37

entail an initial investment cost of Php 172 Million expected to cater the needs of 50,000 consumers for the entire area. Suggested Measures to Undertake to Mitigate Circumstances of Systems Loss:

 Mitigation & Prevention o The installation of elevated metering centers (EMC) o Transfer meters inside of premises/fences and meters on poles o Replace mechanical meters to electronic meters  Culture Change o Conduct Barangay consultation meetings especially in hi-loss areas (penalty) o Community outreach programs: Feeding missions, medical missions, etc.

SMART GRID TECHNOLOGY

A Smart grid is an electricity supply network that makes use of technology with digital communications capabilities to accurately detect and react to local changes in the usage of power on a grid13. It is not simply a technological innovation as the application of smart grid technologies involves the concept of economic and financial planning, in order to be realized successfully and in an efficient way. It consists of the following attributes:

Figure 37. Smart Grid Pyramid14 1. Smart transmission grid – an economically viable and physically feasible power transmission network that increases overall grid reliability and efficiency through the use of automated digital communication.

13 Smart Grid Technology. Available at https://iotenergy.com/solutions/smart-building/smart-grid/ 14 Photo source: https://www.bchydro.com/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 38

2. Smart distribution grid – controls devices and communications to allow automated decision making in the field and relying of critical information to the utility control center. 3. Microgrid – a scaled down version of the centralized power system generates, distributes and regulates the flow electricity. It can operate either grid or island mode. Visualizing the concept of the smart grid pyramid presented above, asset managements would serve as the base for the realization of a smart grid infrastructure. In the case of LASURECO, the electric cooperative is still in need of developing their asset management framework as an initial step towards adapting smart grid technologies. The development of a smart grid does not involve replacing the existing electricity network as it would be impossible for technical and economic reasons. Instead, the smart grid development is an enhancement of the existing network, by means of implementing new services and features, while maintaining as much as possible, the old physical infrastructure and not compromising its day-to-day operations.

COMMUNITY SOLAR

Figure 38. Community Solar15 Community solar project—sometimes referred to as a solar garden or shared renewable energy plant—is a solar power plant whose electricity is shared by more than one household.16 Although most community solar projects aim to save consumers money, there may also be cases in which environmental or social outcomes are the main goal. Community solar programs offer one solution environmental solutions in utilizing large-scale fossil fuel based electric generation and distribution systems. Solar power, which converts sunlight into electricity, is rapidly being adopted because of its declining costs, zero greenhouse gas emissions, and ease of scalability. Community solar programs are

15 Photo source: https://www.mortenson.com and https://www.plymouthenergycommunity.com 16 Community Solar Power Explained. Available at https://www.energysage.com/solar/community-solar/community- solar-power-explained/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 39 especially popular because they are easily made available to households, decrease upfront investment of time and money, are locally situated within communities and allow for localized decision-making. Recommendations:

The total cost involved for a 1MW community solar installation is around Php 54 Million. This would benefit consumers within the local area in terms of financial costs and the ease of enjoying an uninterrupted power supply (UPS). Issues on collection problem will also be addressed, as there would be lower cost to be paid by the consumers. As an example, at least 1,000 house with a load of 1kW will have access to electricity through this project (taking into consideration the distance, and infrastructure around the vicinity of the housing area). However, this will depend on the investment financing to be implemented.

FLOATING SOLAR

LANAO LAKE

Figure 39. Proposed Solar Floating Facility in the Lanao Lake

The estimated cost for the proposed floating solar facility project for the Lanao Lake is Php 6.4 Billion. The initial capacity would be 100MW covering 100 hectares (has) of the Lanao lake’s surface with 1 MW/ha., which has an investment cost of US$1.2M/MW. Aside from being the first project of its kind in the country, this project could provide the consumers with solar power as their main supply of electricity. Advantages of Floating Solar:

 This project shall serve as a backup power source in times of drought when the Agus hydroelectric power plant (HEPP) generation performing at low capacity. The current total Agus HEPP power capacity is 726 MW.  With the installation of a floating solar facility, water within the shall experience less evaporation thus more water resources will be conserved as intended for household, agricultural, and hydroelectric power uses. Additional Details on the Floating Solar Power Project for Lake Lanao

 Lake Lanao is the second largest freshwater lake in the country and the largest one in Mindanao. It is located in Lanao del Sur and has an area of 34,000hectares, a surface

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 40 elevation of 700 meters, with an average depth of 60 meters. The proposed structure shall only cover 100 hectares of the lake with an estimated power generation of 100MW at 1MW/ha. As mentioned earlier, the said proposal for a floating solar facility on the lake would cost around Php 6.4 Billion. Expected Results:

 A source of revenue or an income generating project for the local government as the floating solar power plant could be a prime tourism site. SUMMARY OF INVESTMENT COSTS

The summary of investment cost as prepared in this project encompasses the necessary interventions needed to increase the power system resilience of Marawi and outlying areas. As such, there must be economic and social considerations in developing new infrastructures, the refinement of existing systems, and the development of other alternative options with the least burden on cost for LASURECO and its customers. It is worth noting that some of the alternative scenarios recommended in this project may not necessarily be implemented immediately but could be considered for future endeavors.

Table 11. Summary of Investment Costs for the Proposed Alternative Scenarios to DESCRIPTION AMOUNT Nets, CCTVs, Blast Walls 1,000,000 Geographical Information System (GIS) 5,000,000 Supervisory Control and Data Acquisition (SCADA) 27,000,000 Mobile Substation 22,000,000 69kV and 13.2kV System Loop-Ready 45,000,000 Community Solar 54,000,000 Smart Meters (for loss reduction and auto cut for non- 172,000,000 payment) Tree-Wire Installation (10% problematic areas) 7,000,000 Underground Distribution System 130,000,000 Floating Solar 6,400,000,000 TOTAL (in Php) 6.86 Billion

Note: Total amount is equivalent to US$ 128 Million (exchange rate: US$1 = Php 53.50) Recommendations:

The principal benefit of completing a summary of investment cost analysis is to create a strong foundation for the program development and future implementation of LASURECO. Moreover, for some alternative scenarios provided such as the installation of floating solar in Lake Lanao, a feasibility study must be conducted to further assess the cost and benefit of the project as well as address concern on water rights with respect to the existing Organic Law (BOL) recommendations.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 41

DELIVERABLE NO. 3

OVERVIEW/RATIONALE: Assist mobilizing government and private funds not only to restore electricity service but to provide potential economic opportunities and community-based livelihood programs FACILITATION/MOBILIZATION OF THE PRIVATE SECTOR TO RESTORE ELECTRICITY SERVICES

Alongside the development of the region is the modernization of the community to make it abreast with the concepts of modern technology. Regional and local developments should be mainstreamed with key national plans and projects. This in turn will enhance the national and local capacity of the region to develop, manage and administer projects addressing the power resilience of the affected region. Part of the third deliverable for this project includes the facilitation/mobilization of private funds to restore electricity services within the area. Through the conduct of this project, the B- LEADERS was able to facilitate the donation of equipment for to LASURECO for rehabilitation and modernization of its facilities.

After a series of inspections to the MAA and three (3) substations of LASURECO, namely, the Dansalan, Ganassi, and Malabang substation, the team was able to assess and identify the needed electrical equipment for the enhancement and rehabilitation of LASURECO’s facilities. The following are the equipment received by LASURECO through the donation: 3 units of 40 meter 500MCM Power Cables (already installed with cable end high-voltage insulation) 500MCM Power Cable will be installed in the Dansalan substation to increase the capacity thus increase power resilience in the area.

500MCM XLPE CABLE  Brand: LS-VINA Cable and Systems  Ampacity: 480A at 40'C in air  Rated Voltage: 8.7/15(17.5Kv)  Type: Crosslink Polyethelene (XLPE)  Conductor: Copper  Accessories: o 6 units 3M termination kit 500MCM o 3 pcs AmPac wedge connector 500MCM o 3 pcs terminal lugs 500MCM Figure 40. 500MCM XLPE Cable

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 42

1 LOT REINFORCED SUPPORTING STRUCTURE

To be used for the fabrication/construction for support to the existing 2x350MCM XLPE cables and the additional 500MCM XLPE cable and surge arresters mounting.

Figure 41. Illustration of a Reinforced

Supporting Structure

2 units of 69kv Oil Circuit Breaker

 1 unit could be used also in Dansalan which the other 01 unit for is outlying areas 5 units of 15kv Oil Circuit Breaker

 Could be used in Malabang and Ganassi substations and its outlying areas. Also recommended creation of mobile substation will in any way reduce cash requirement to make the very vital substation to be realized at very least cost. 160 pieces of 25-footer Concrete Poles

 Could be used in lateral lines in rural areas, this will strengthen resilience and in any way restore peace and order in the region. Restoring peace and order is a big leap in regions’s economy.

The success of the facilitation was made possible with the help of the Aboitiz Foundation and the Davao Light and Company last November 8, 2018. With this, power resilience of the electric facility is further enhanced providing more economic and investment potentials in the region. The estimated cost for the materials stated above is Php 1.86 Million. This will assist in strengthening the power resilience in the area and LASURECO itself.

Moreover, appreciable investments not only on power system infrastructure should be look into, renewable energy project should likewise be considered as a key parameters for community development both for livelihood and power utilization projects. Considering that huge investments would be needed for renewable energy projects, coordination with the local and national government should be anticipated and materialized.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 43

EXPECTED OUTCOME OF THE PROJECT Provide Potential Economic Opportunities and Community-Based Livelihood

In order to capture and develop the natural and human resources of the region, future thrusts including that of the green energy sector should be considered as these could provide employment and extend economic benefits to the affected residents. These opportunities should also recognize the importance of empowering community members to look after the existing infrastructure to cater to a more resilient and reliable power supply in the region at the same time addressing economic recovery needs of the people displaced by the conflict. Moreover, community-based livelihood trainings involving those of the youth could also be a strategy to counter violent extremism. Several livelihood opportunities recommended in this report are the following: VEGETATION TRIMMING

Figure 42. Vegetation Trimming Activities17 Part of ensuring that the energy infrastructure remains in its optimal condition is to conduct regular vegetation or trimming. Vegetation trimming may prevent the occurrence of power outages.

Fires caused by vegetation such as dried leaves or dead trees making contact with transmission lines could be an effect of the failure to implement vegetation trimming. Injuries or fatalities due to electrocution may be another outcome if vegetation-trimming activities are not undertaken by qualified personnel.

Another alternative proposal from vegetation trimming is to use tree-wire (conductors), however, the replacement of existing wires call for initial investments. Recommendations:

As a prime mover, LASURECO should form a group/team to conduct the monitoring of distribution lines and their respective statuses. Training or capacitating new employees that will handle vegetation trimming and assess the condition of these critical infrastructure should be considered. A refresher

17 Photo source: https://oppdthewire.com/oppd-tree-trimming-program/ and http://www.prc68.com/I/Images/PwrPTV03b.jpg

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 44 course for the LASURECO personnel should be conducted to ensure that investments in maintaining the facility will be fully realized.

In the long run, LASURECO could also evaluate if hiring a qualified team of contractors is more economically feasible than their own personnel conducting the vegetation trimming activities. With that being said, supervision and monitoring of the said activities shall still be conducted by LASURECO. INTRODUCTION TO COMMUNITY-BASED ENERGY EFFICIENCY MEASURES

Energy management is a term that relates to saving energy in a business, organization, public-sector, or even at home. It is the key to efficiently save energy in a business, thus, increasing resource profitability. The cost-effective step to energy management processes is to monitor the energy consumption through metering and an energy audit. The conduct of energy monitoring is highly recommended to establish fundamental information on energy use and implement necessary improvement on identified areas after energy audit.

This activity is applicable not only to businesses but also as a household energy saving measure. The community must be educated to practice simple and practical energy efficiency activities at home and eventually equate this with business establishments they may be involved with. This could be done thru a community gathering to be spearheaded by LASURECO and the LGU in the area. Resource personnel who would conduct this activity should be equipped with the necessary data to include measures to correct noted deficiencies for the beneficiaries to enjoy energy savings. It should be emphasized that this activity will ultimately benefit the consumers who would reap the fruits of their exerted extra efforts. This will help ignite the interest of consumers to put into practice what they will learn from the sharing activities.

Depending on the need, there should be a series of presentations to inculcate to the community the benefits they can derive out of the presented measures.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 45

ASSESS END USER NEEDS FOR VARIOUS RENEWABLE ENERGY TECHNOLOGIES AND BUSINESS MODELS FOR DIFFERENT USES

Figure 43. Barangay Assembly18 Conduct Presentations on the Applications of Solar Power as a Way of Addressing Losses and as a Potential Source of Income for the Community

It is recommended to emphasize that adopting solar energy initiatives will result to more livelihood opportunities along with reduced costs. Should there be budgetary constraints, the LGU can assist interested individuals in availing easy loan options wherein they can play best versus their income. Measures and/or Considerations in Choosing Solar Panels As in residential areas, a decreasing energy load would mean installing lesser solar panels in quantity thus equating to less cost in terms of installation. One of the measures to consider in doing so is improving energy efficiency in the household or establishment, it is truly important to undertake energy-conservation measures before installing solar PV systems. The maximization of energy efficiency would reduce the over-all energy demand, thus providing an opportunity to fully utilize the PV system’s full potential. With that being said, in determining the purchase of solar PV systems for commercial purposes/projects the following parameters should be considered: 1) Maximization on energy efficiency of the establishment 2) Budgetary constraints 3) Long-term return on investment 4) Available payment schemes in the market 5) Government provided tax incentives 6) Solar power purchase agreements 7) Solar leases 8) Receiving grants 9) Marketing strategies 10) Preventive maintenance of solar PV installations

18 Photo source: https://headlinezambales.wordpress.com/2017/10/12/biay-hosts-synchronized-barangay-assembly/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 46

Cut Expenses and Add Green Value to Establishments with Solar Energy

With rooftop solar power, for as long as the system has accessibility to direct sunlight, power may be derived to electrify the system. The application of modern technology such as solar power has provided a lot of benefits to households and business establishments through earnings/savings and its potential environmental benefits.

Local Solar Installations

Figure 44. 1kW Local Solar PV Rooftop Figure 45. 10kW Local Solar PV rooftop Installation, Dona Vicenta, Davao City Installation, Assumption Church, Davao City

Use of Rooftop Solar PV Systems for Energy Generation and Revenue for Commercial Enterprises

Figure 46. Solar Power System Operating Flow and Rooftop Solar Application in the Philippines19

19Photo source: https://solarcontrols.cz/en/wattrouter.html and https://www.rappler.com/life-and-style/181068-solar- power-panels-things-need-to-know

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 47

INSTALLATION OF SOLAR PHOTOVOLTAIC STREETLIGHTS

Figure 47. Installation of Solar Streetlights in Marawi City

The B-LEADERS has installed a total of 205 units of solar photovoltaic (PV) streetlamps in the areas of Barangay Sagonsongan, Barangay Sarimanok, and the Catholic Relief Services site in Raya Guimba, Marawi City. The project has likewise installed rooftop solar PV systems in Barangay health stations (BHS) in Barangays Olowa-Ambolong, Sugud, Tuca and Basak Malutlut.

Benefits that can be derived from solar PV streetlight installations:

The installation of solar PV streetlights in a community could be considered as very essential for increased security and safety purposes; however, this activity involves huge investment in which its return on investment (ROI) should be considered. Beneficiaries can equate the investment into solar PV streetlights in terms of savings earned in the adoption of the solar powered systems independent from grid connection. The advantage of solar PV streetlight installations may include the following20:

1. There are no power outages; 2. There is no need for power voltage, trenching or metering; 3. Availability of back up battery for prolonged periods during inclement weather (cloudy or rainy days); 4. Lighting and power are distributed. There is no single point of failure for enhanced security of the product; 5. Solar PV streetlights are easy to install with the use of quick connect plugs; 6. There is no need for a scheduled maintenance of the product for a maximum of five years; 7. There is no cost for landscaping, asphalting, or concrete replacement; 8. Transformers and meters are not needed nor included in material costs; 9. No electricity consumption from the grid, hence there is no need for billing from the electric cooperative;

20 30W 60 LED Solar Motion Sensor Outdoor Light with Remote Available at: https://www.wyrconnections.com/30w-60led-solar-motion-sensor-outdoor-light

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 48

10. Solar PV Modules have a prolonged operational life with possibly more than 25 years of power generation capacity; 11. The use of solar PV technology/renewable energy makes the product environmentally friendly; 12. Some solar PV streetlights may have automated daylight sensors, hence removing the need for manually powering the unit on or off 13. Solar PV streetlights are an option for an improved lighting source 14. The product is safe with no or minimal risk of electric shocks COMMUNITY-BASED SOLAR SYSTEMS FOR SMALL COMMUNITIES WHERE ROOFTOP SOLAR INSTALLATION IS NOT ECONOMICALLY FEASIBLE

Figure 48. Community Solar Infographic21

Community Solar is sometimes referred to as a solar garden or shared renewable energy plants. This is a solar power plant which is being shared by more than one household. Community solar allows its consumers to utilize solar power even if they do have access or own property wherein their solar facility could be built on.

As discussed in the previous deliverable, community solar can refer to both community owned projects as well as third party-owned plants whose electricity is shared by a community. The installation of community solar would allow members of a community to experience and benefit the shares from a communal solar power source even if this could not be directly installed within their own property or premises21. The beneficiaries of a community solar farm would enjoy the power produced from the solar installation which most likely would cost less than what the electric utility would charge them.

Community solar projects and programs are typically offered in two formats22:

21 Energy Sage. Community Solar: What is it?. Available at https://www.energysage.com/solar/community- solar/community-solar-power-explained/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 49

1) Ownership-based projects21

This would allow the consumers to own some of the solar panels or participate in the project itself8. The participants could either choose to purchase the panels up-front or finance them through a loan provided by the project developer, their own financial institution/bank, or from other government entities i.e. PAG-IBIG fund.

Beneficiaries of the community solar facility may choose to purchase enough share to meet their annual electricity consumption. A share of the community solar’s output could be credited to its customers through their respective electricity bills or other arrangements with the project’s administrator which could be the LGU. With that being said, projects of the like may be very complicated to operate, the concept of ownership can be an obstacle for the prospective consumers who do not have the necessary funds to get involved in a project of the like8.

2) Subscription-based projects21

This will come in the form of individual or corporate investments to develop and own the a community solar project, sometimes investment in the project takes advantage of associated tax credits and extends an opportunity for the public to participate8. In this case, he project will be largely managed by the electric utility who will be in charge of consumer enrollment and billing arrangements. Arrangements for these types of projects vary however most projects of the like do not require upfront fees to participate. With that being said, subscribing to community solar projects is similar to signing up for green power, however, instead of paying more for clean energy, participants will pay a cheaper price. Participants must reside within the franchise area of the distribution utility and their share of power from the project will not significantly exceed their electricity usage, rule of thumb upper limit is 120%21. Renewable Energy Resources

Among the resources available to help achieve this goal are those associated with the offshore environment, including wind energy, wave energy, and ocean current energy. Growing interest in the utilization of these resources to generate electricity has brought into focus the need for a better-defined regulatory framework to grant access to waters where development activities might occur.

Based on the Water-Energy-Food and Nexus Study (also a study conducted by the B-LEADERS), there is a need to efficiently manage and allocate water resources given the changing scenarios (e.g. lower rainfall and precipitation, changing climate patterns, overly consumption of water resources for agriculture and households) will eventually lead to drought and loss of surface water in most areas in Mindanao. Fortunately, the Lanao del Sur region shall not experience that much problems, however, it is good to note that other regions will be greatly affected and that the only way to resolve most issues is through effective inter-basin transfers.22

22 Inter-basin transfer refers to the moving or transfer of water from a watershed with a surplus (donor basin) to a watershed suffering from a shortage (recipient basin). Source: https://www.ctc-n.org/technologies/inter-basin- transfers

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 50

Lanao Sur being naturally abundant in water resources may opt to help and facilitate this inter-basin transfer mechanism. Moreover, adoption of such renewable energy projects such as the solar powered rooftops will not only save money on their energy bills, but also meet their environmental and/or local economic growth objectives through the usage of renewable energy.

Wind Power

Lanao del Sur is situated in the upper portion of Mindanao, which is vulnerable to a windy environment which is an essential factor for the utilization of wind renewable energy as a power source. However, further study is still required considering this will be the first of its kind for the region.

Figure 49. Solar and Wind Power Plant23 Hydroelectric Power

Mindanao’s power resources are harnessed from four major sources, namely hydroelectric power, coal power, geothermal, and oil. The majority of power is sourced from hydropower which is coming from Lake Lanao, the very reason why during summer months or during long dry spells, the power supply in Mindanao is gravely affected the when water levels in lake Lanao are low. But there are other sources of hydropower in Mindanao waiting to be tapped. This initiative is spearheaded by MinDA and DOE for USAID funding.

Lake Dapao is located in in the province of Lanao del Sur, just southwest of Lake Lanao and is one of the sites DOE has cited to bolsters a hydroelectric power potential of around 50MW24.

Other prospective hydroelectric power sites in the region include the Maitling River, which boasts a potential of around 50MW located in Malabang and . The Matadi River also located in Malabang has the potential for 27MW. These hydroelectric power potentials were applied and awarded to AQA Global Power, Inc. by DOE as of Figure 50. Lake Dapao24 December, 2017. More examples include the 30MW Baras River. Initial reviews of the region’s hydroelectric power potentials are expected to provide a very promising result, which could be done by tapping LGU’s thru community involvement. However, the issue with regards to the peace and order situation in the region hinders interested parties to go into further exploration of the resources in the area and affect the possible entry of investments. If ever these projects would be implemented, it could provide livelihood opportunities for the entire populace.

23Photo source: https://thinkprogress.org/states-lead-pivotal-shift-toward-renewable-energy-after-midterms- 776b2f733916/ 24 DOE Bolsters Hydropower Potentials in and Lanao del Sur. Available at: https://www.doe.gov.ph/press- releases/doe-bolsters-hydropower-potentials-palawan-and-lanao-del-sur

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 51

EDUCATE COMMUNITY ON MODERN FARMING TECHNOLOGIES, GOVERNMENT PROVISIONS OF NECESSARY/NEEDED MATERIALS

The Autonomous Region of Muslim Mindanao (ARMM) of which Lanao del Sur is located has a strong agricultural base, as the rest of the country thrives on a predominantly service and industry- oriented regional economies. As per the Philippine Statistics Authority (PSA), the improved performance of the region’s economy was mainly due to the recovery of the agriculture, hunting, forestry, and fishing (AHFF) industry. The AHFF industry posted the highest contribution to the ARMM’s economic growth in 2018, accounting for 4.3 percentage points out of the 7.3 percent GRDP growth of the region. Both the agriculture and forestry, and fishing subclass had registered significant growth, with the agriculture and forestry subclass posting a growth of 8.7% in 2017 from negative 0.9 percent in 2016, and the fishing sector posting a growth of 4.5% from negative 8.7 percent in 201625. These figures are significant, as farmers and fishermen remain among the poorest of the poor in the Philippines as of 2015. With the growing economic pressures to promote higher agricultural productivity in the region, sustainable management of water and land resources must be regarded and implemented by the local government units and of relevant government agencies. Table 12. Possible Agricultural Produce in the Region of Lanao Sur

Type of Data Remarks Commodities Abaca Farmers can grow 500 hills per hectare for intercropping and Need interested 1,000 hills for mono-cropping and can harvest thrice a year. investors and Abaca production is labor-intensive and could generate jobs in construction of the rural communities. This commodity is suitable to the county’s manufacturing topography, climate and local culture. Outputs from abaca are plant in the area exported to Japan and Germany but market is expected to grow in multitude once in full-blown. Unfortunately, production is dwindling due to neglect as most of the farmers are focusing on high-value crops and the high labor requirement. Banana This is the leading fruit grown in the Philippines and a consistent Need interested top dollar earner. It is being exported for foreign market as investors and European Union, USA, Japan, Russia and Canada is still construction of promising. Highest demand for cavendish, lakatan and saba manufacturing varieties which will be processed to catsup and banana chips in plant in the area. foreign markets propelled the government’s effort to further improve its production in the country, ARMM not spared. Corn ARMM provinces of and Lanao del Sur are Need interested traditionally producing bumper corn harvest during peak seasons. investors and ARMM is ranked as one of the five leading corn-producing construction of regions of the country. Even in times of drought, corn serves as manufacturing the farmer’s savior as thousands of hectares of wetland and plant in the area. swamps dries up for excellent corn farming. With this seasonal surge in production level, corn farmers of ARMM encounter

25 Strong Agriculture at the Roots of ARMM’s growing economy. Available at: https://www.pressreader.com/philippines/the-mindanao-examiner-regional- newspaper/20180427/281599536111636

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 52

marketing problems due to high freight cost to transport their products considering country’s major corn processors are in area. It would be best if area-based processing industries such as feed mills be established in the region. Fisheries and The region is exerting effort to expand the production area, Conduct Aquatic obviously, marketing and processing monopoly exists. Seas, lakes presentations to Resources and swamps in the region are being targeted for commercial-scale concerned fishing industries needed to push the economy in the region. communities. Consumers in ARMM now enjoy a cheap supply of fish which is Possible investors a potential best ingredient on fish meal production and canning. are welcome. Halal Industry Religious leaders and other stakeholders in the ARMM have Conduct approved the Halal Certification standards that will be observed presentations to in the region as it’s strive to penetrate the global market for halal concerned products. This will serve as a guide on slaughtering, preparing, communities. processing, handling, packaging, distribution and serving of halal Possible investors food. It is likely for the halal market to grow as the worldwide are welcome. Muslim community and the global Halal trade is growing at a fast pace as even the non-Muslims are buying Halal certified food and other products due to their high quality, hygiene and nutritious value. Livestock Goat production is identified as one of the regions production Conduct strengths due to cultural compatibility with ARMM, considering presentations to its largely Muslim inhabitants. Commercial scale cattle concerned production is also being pushed along the effort to improve the communities. carabao and goat breed. Swine produce is also being observed Investors are together with cow production. welcome Oil Palm The region has been identified and proven to be very feasible Need interested Industry for oil palm industry. The oil palm is superior in productivity investors and and with the existence of an Oil Palm Mill in , investing construction of another manufacturing plant is a plus factor. manufacturing plant in the area.

Pineapple This is one of the region’s dollar earners in tandem with banana Need interested cavendish. A registered establishment in Wao, Lanao del Sur is investors and engaged with commercial production of pineapple export. Plans construction of to invest to undergo another production plant would be a boost. manufacturing plant in the area.

Regional Investment Plans

With the above data, an investment priority plan for the ARMM should be conducted particularly in exporting activities for the export trader, service exporters and its support activities. Most of the agricultural produce cited above are lucrative in the international market and are very attractive to foreign investors. Such initiative should also include the adoption or creation of an integrated framework that pushes for responsible and sustainable investments in the region. Moreover, these investment opportunities should be peace promoting and culture-sensitive in order to empower and protect the interest of the region’s people and the investors as well.

As an initial and immediate move of the Department of Agriculture (DA) to the Department of National Defense (DND) for soldiers is to augment efforts in agricultural

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 53 rehabilitation programs for Marawi and the Lanao del Sur province. Army Agricultural Equipment (AAE) was organized to assist displaced families get back on track of the agricultural life. The provided equipment will be used to serve the needs of farmers in the area at no cost.

The local government units in coordination with the local officials and concerned government agencies particularly the DA should spearhead these initiatives specifically in convening the entire community in presenting the modern technologies and the provision of needed equipment and affordable loans to farmers. The Technical Education and Skills Development Authority (TESDA) can serve as the government’s extended arm to channel technical expertise to interested individuals especially the out of school youth.

The best initial move is to assemble the community and provide them with the on the potential livelihood programs that may be received from the activities and have them understand and embrace the modern technologies that come along with the activities. This would be key to the upliftment of the community’s way of living and to develop the economy of the region to gradually be globally competitive as it is aimed to be.

Before the conduct of initial take off meetings with concerned government entities MinDA and DA, a concrete plan is needed for a smooth project transition going to the presentations to be conducted to community on various projects based on available investors.

Irresponsible investments may pose agricultural and environmental degradation. Further, an effective mechanism is to ensure that all project pass the environmental impact assessment of the Department of Environment and Natural Resources. INTRODUCE PROVISIONS OF MODERN TRANSPORTATION FACILITIES (EV - ELECTRIC VEHICLES) For the Transportation of Agricultural Produce

Figure 51. Modern Transportation Methods for Agricultural Produce26

26 Photo source: https://www.tipeurope.com/solar-powered-trailers-future-innovation/ and https://www.vox.com/2016/4/28/11524958/energy-storage-rail

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 54

A good harvest of local agricultural produce is not enough if it cannot be transported to the market due to freight and handling issues. As it is, produce could be transported but at more expensive rates due to high transportation costs and delays experienced in the transportation, ultimately the prices are not competitive anymore. With the provision of electric vehicles, there is a potential that costs will be more competitive as freighting operations will be lessened plus the reduction of other operating expenses. Again, this would entail significant investment for the financing and the development of electric vehicles and its corresponding infrastructure in the region, including the construction of farm to market roads which are necessary, as well as connecting land, sea, and air if needed. Including the construction of farm to market roads which are necessary in the region. These activities could provide more employment opportunities for the community.

Provision of Modern Public Utility Vehicles to Interested Individuals/ Sub- contractors on Affordable Terms.

Figure 52. Modern Public Utility Vehicles27 The availability of transportation especially to commuters from remote or far-flung areas would be a great assistance to the local community. Investing in the technology such as electric vehicles and other modern alternative transportation methods and infrastructures would also mean livelihood opportunities for the local especially for those reporting for work and for the convenience children going to school. The Department of Public Works and Highways (DPWH) should spearhead and prioritize the building of roads and infrastructures especially in the remote far flung areas.

27Photo source: http://ok-options.com/indian-railway-enquiry-between-two-station-instantly/ and https://www.solarpowerrocks.com/affordable-solar/how-much-solar-do-i-need-to-charge-my-electric-car/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 55

TOURISM

Tourism has the capability to significantly promote economic and social development in an area. It provides economic stimulation through the provision of income generating activities such as businesses, employment, and exports of local goods and products of an area. Tourism could also provide various benefits such as the preservation of the environment (ecotourism), cultural heritage, and infrastructure of local community facilities28. But, tourism can have positive or negative impacts depending on planning, development and management. The tourism industry has low barriers to entry thus establishing new profitable businesses are easier. Moreover, tourism industry encompasses a range of enterprises that provide development opportunities to the local economy29.

There are a number of tourist attractions in the region which if developed would cater foreign and local tourists. These tourism sites could prove how beneficial the national resources within the region are and could serve as possible opportunities to develop the area to a top tourism spot. Given the existing natural resources, inviting investors for tourism in the region would not be a significant challenge, rather pose greater challenges on its operations and management.

Figure 53. Images of Tourism Sites within the Lanao Region30 The waterfalls seen in the images above could be developed as tourist sites such as resorts or be developed for power utilization through hydroelectric power plants, whichever is more feasible. These options could both provide possible investments and livelihood opportunities for the region.

28 Travel and Tourism Economic Impact. Available at https://www.etoa.org/docs/default-source/Reports/other- reports/2013-travel-tourism-economic-impact-by-wttc.pdf?sfvrsn 29 Tourism as a Driver of Economic Growth and Development in the EU-27 and ASEAN regions. Available at http://www.eucentre.sg/wp-content/uploads/2013/12/EUCResearchBrief_TourismEU27ASEAN.pdf

30 Photo source: https://www.escapemanila.com/2013/09/tinago-falls-and-marawi-city.html and https://travelwirenews.com/tourism-in-iligan-hurt-by-marawi-war-462955/

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 56

LOAD/DEMAND FORECASTING (ANNEX TO 69KV LOOP READY)

Annual Load Growth Table

Table 13. Annual Load Growth Table YEAR DEMAND (MW) YEAR COVERED 2018 30 0 2019 31.8 1 2020 33.708 2 2021 35.73 3

2022 37.874 4 2023 40.147 5 2024 42.556 6 2025 45.109 7 2026 47.815 8 2027 50.684 9 2028 53.725 10 2029 56.949 11 2030 60.366 12 2031 63.988 13 2032 67.827 14

2033 71.897 15

Forecasting is estimated at 6% per year based on 30MW demand for zero year and onwards. This is done based on the progress rate and expected energy demand as the load increases. Identification of Demand Risks

Demand risks can refer to the demand that is either lower or higher than the actual load. If the demand is lower than the actual load, the power distributor will shoulder difference and consider it as part of their expenses. This will be considered as part of the loss. If the demand is higher than the actual load, the distributor can buy the kWh difference from the Wholesale Electricity Spot Market (WESM) to satisfy the energy requirement at existing costs. Non-Network Assets still have to be determined by LASURECO for inclusion to this asset valuation.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 57

RECOMMENDATIONS

Renewable energy development is seen as an opportunity to support the advocacy towards increasing the power system resilience in Marawi and outlying areas. Investments on this sector will play a vital role in the community’s development, particularly on livelihood opportunities and power utilization. Since huge investments are required for these projects, a closer coordination with the local and national government as well as foreign investors will be integral in maintaining interest and sustainability for the development of RE resources in the region. Although there are already initial studies on this front, a separate project dedicated for research project implementation would greatly benefit RE development in Marawi and the region.

Introduction of modern technologies not only on existing investment opportunities and existing resources can further assist the community. With these mechanisms leveraging on the region’s abundant resources, we can see a Marawi that can compete on a global scale. This is why it is also important to look at development that starts from the grassroots, it is also important to assist the community in gaining an appreciation on the benefits of shifting to such technology. However, the opportunities discussed in this study would require further studies and even authority delineation to position each investment in place and acquire the most ideal results.

One key recommendation in this report is to purchase the 69kV sub-transmission line from the NGCP to reduce current expenditures and help in generating income for LASURECO. This purchase will also assist LASURECO in ensuring that their operations remain viable. An initial step in implementing this plan is for LASURECO to submit to NGCP a Letter of Intent (LOI) signifying intention to purchase the 69kV sub-transmission line within their franchise area.

Alternative scenarios such as the floating and community solar facilities, and underground distribution system are also recommended as they are seen to contribute to achieving better power system resiliency. As huge investment is likewise involved for these projects, it is suggested to look for funding of these projects on an individual basis. With this, renewable energy development remains to be a top priority.

Given that the region is abundant in natural resources, the conduct of capacity trainings for farmers on modern farming technologies and other sustainable strategies is recommended in order to enhance the agricultural performance and competitiveness of the region.

Furthermore, innovating conflict-sensitive business models and strategies such as the Energy Resilience Plan (ERP) for LASURECO is recommended to help build human and institutional capacities that will contribute to more sustainable long-term economic recovery and ultimately in peace consolidation at the local level.

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 58

Annex A: Asset Valuation of LASURECO Facilities

13.2KV DISTRIBUTION LINE (BACKBONE AND LATERAL)

Table 14. 13.2kV Distribution Line (Backbone) 13.2 kV DISTRIBUTION LINE (BACKBONE) Line Feede Cost per km Total Cost of Line Substation Length (in Barangays/Municipalities Served r (in Php) (in Php) km) 73% of Marawi City; Ditsaan Ramain, 1 4.4 881,999.53 3,880,797.93 Bubon, Buadi Poso Buntung Mulundo, Taraka, , Lumba Bayabao, , , 2 52.57 881,999.53 46,366,715.29 Dansalan SS, 40MVA , , Tagoloan, Lumbayangue, , Dumalondong, 0.56% of Marawi City; Saguiran, 3 18.8 881,999.53 16,581, 591.16 , Pantar, Pantao Ragat, Baloi 4 4.9 881,999.53 4,321,797.70 MSU, 12% of Marawi City , , , 0.87% of 1 19.65 881,999.53 17,331,290.76 Dansalan SS, 7.5MVA Marawi City, Kalawi 2 881,999.53 0.00 Pulalas, , Bindiyan, Tubaran, 1 34.01 881,999.53 29,966,804.02 , Marogong, Lumbaca Unayan, Ganassi SS, 10MVA Ganassi, Madama, Madalum 2 881,999.53 0.00 1 27.81 881,999.53 24,528,406.93 Malabang, , Kapatagan Malabang SS, 5MVA 2 881,999.53 0.00 Malabang SS, 5MVA 1 53.39 881,999.53 47,089,954.91 Picong, Kalanugas (2) 2 881,999.53 0.00 TOTAL (in Php) 190, 097,358.70

Table 15. Lateral Line 7.62kV

LATERAL LINE, 7.62kV

Line Cost per Total Cost of Line Substation Feeder Length km(in Php) (in Php) (in km) 1 1.32 291,059.84 384, 199.00 2 15.771 291,059.84 4,590,304.82 Dansalan SS, 40MVA 3 5.64 291,059.84 1,641,577.53 4 1.47 291,059.84 427,857.97 1 5.895 291,059.84 1,715,797.79 Dansalan SS, 7.5MVA 2 291,059.84 0.00 1 10.203 291,059.84 2,969,683.60 Ganassi SS, 10MVA 2 291,059.84 0.00 1 8.343 291,059.84 2,428,312.29 Malabang SS, 5MVA 2 291,059.84 0.00 1 16.017 291,059.84 4,661,905.54 Malabang SS, 5MVA (2) 2 291,059.84 0.00 TOTAL (in Php) 18,819,638.51

Total Cost of Backbone and Lateral Lines Combined: P208,916,997.21

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 59

ASSET VALUATION OF EXISTING SUBSTATIONS Annex “A” QUANTITY AMOUNT (in Php) Ganas UNIT Dansalan Malabang EQUIPMENT UNIT si PRICE Dansalan Ganassi Malabang 7.5MV 10MV (in Php) 40MVA 5MVA 5MVA A A Gang-Operated Air Break Switch, 72.5 kV set 1 1 1 1 552,051.97 552,051.97 552,051.97 1,104,103.94 Surge Arrester, 60 kV, Station Class unit 3 3 6 3 3 51,632.61 309,795.66 309,795.66 309,795.66 Voltage Transformer, 72.5kV, unit 3 3 3 320,594.86 0.00 961,784.58 1,923,569.16 69,000/1.732:115V Current Transformer, 72.5kV, 100:5 A unit 3 3 3 351,506.21 0.00 1,054,518.63 2,109,037.26 Power Fuse Assembly, 72.5kV set 1 1,240,132.17 1,240,132.17 0.00 0.00 SF6 Gas Circuit Breaker, Live Tank, unit 1 1 1 3,893,217.39 0.00 3,893,217.39 7,786,434.77 72.5kV, 2000A SF6 Gas Circuit Breaker, Dead Tank, unit 1 2,919,913.04 2,919,913.04 0.00 0.00 72.5kV, 1200A Power Transformer, 5MVA, 69/13.2kV unit 1 5,302,620.67 0.00 0.00 5,302,620.67 Power Transformer, 5MVA, 69/13.2kV unit 1 6,363,145.04 0.00 0.00 6,363,145.04 (with OLTC) Power Transformer, 7.5MVA, 69/13.2kV unit 1 7,953,931.31 7,953,931.31 0.00 0.00 Power Transformer, 10MVA, 69/13.2kV unit 1 11, 247,983.66 0.00 11, 247,983.66 0.00 Power Transformer, 12MVA, 69/13.2kV unit 15,229,564.78 0.00 0.00 0.00 Power Transformer, 40MVA, 69/13.2kV unit 1 32,137,096.18 32,137,096.18 0.00 0.00 Power Recloser, 630A, 15.5kV unit 4 3 3 3 1,397,761.00 5,591,044.00 4,193,283.00 8,368,566.00 Voltage Transformer, 15.5kV unit 3 3 59,686.96 0.00 0.00 358,121.76 Cut-Out, 15kV, 100A unit 3 3 3 6,875.00 20,625.00 20,625.00 20,625.00 Fuse Link, 6K unit 3 3 3 250.00 750.00 750.00 750.00 Surge Arrester, 10kV, Station Class unit 18 21 15 21 18 20,130.79 785,100.81 301,961.85 785,100.81 Distribution Transformer, 25kVA, unit 3 3 3 101,718.88 305,156.64 305,156.64 305,156.64 13.2/.240kV Pole Line Hardware, Bus and Support lot 1 1 1 1 1 2,060,359.83 8,897,008.36 1,248,702.93 2,497,405.85 69kV Pole Line Hardware, Bus and Support lot 1 1 1 1 1 1,966,515.65 5,661,181.42 1,191,827.67 2,383,655.33 15kV Protection, Batteries, Relay, and Control lot 1 1 1 1 1 4,996,461.05 14,383,751.51 3,028,158.21 6,056,316.42 Wiring General Requirement, Others lot 1 1 1 1 1 7,982,743.82 22,980,626.15 4,838,026.56 9,676,053.12 AMOUNT PER EXISTING SUBSTATION (in Php) 103,738,164.21 33,147,843.74 55,368,457.44 TOTAL AMOUNT OF ALL EXISTING SUBSTATIONS (in Php) 192,254,465.39

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FIRST PROGRESS REPORT 60 SECONDARY LINES

Table 16. Secondary Lines (240V) SECONDARY LINES (240V) Line Cost per KM Total Cost of Line Substation Feeder Length (in Php) (in Php) (in km) 1 1.716 97,019.95 166,486.23 2 20.5023 97,019.95 1,989,132.09 Dansalan SS, 40MVA 3 7.332 97,019.95 711,350.26 4 1.911 97,019.95 185,405.12 1 7.6635 97,019.95 743,512.37 Dansalan SS, 7.5MVA 2 97,019.95 0.00 1 13.2639 97,019.95 1,286,862.89 Ganassi SS, 10MVA 2 97,019.95 0.00 1 10.8549 97,019.95 1,052,268.66 Malabang SS, 5MVA 2 97,019.95 0.00 Malabang SS, 5MVA 1 20.8221 97,019.95 2,020,159.07 (2) 2 97,019.95 0.00 TOTAL (in Php) 8,155,176.69

METERING SERVICE CONNECTIONS

Table 17. Metering/Service Connections METERING/SERVICE CONNECTIONS Service Drops Quantity No. of Primary Meters on Elevated Meter Customers Single Phase Metering 1P CL 200 1P CT Rated Poles (1P CL Clusters (1P Connected (1P) CL 100 Instrument 100) CL 100) Rated Meters Residential 53,884 16,165 10,777 26,942 Commercial 2,145 1,609 536 Industrial 23 23 Others 1,777 889 889 TOTAL 57,829 17,054 1,609 536 11,685 26,942 23 AMOUNT (in Php): 1,566.00 2,000.00 7,009.00 1,566.00 1,566.00 35,686.01 SUB-TOTAL (in Php): 26,706,094.20 3,218,000 3,758,576.25 18,267,859.80 42,191,172.00 820,778.23 TOTAL AMOUNT 94,962,480.48 (in Php):

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 61 DISTRIBUTION TRANSFORMERS

Table 18. Distribution Transformers DISTRIBUTION TRANSFORMERS No. of Quantity Custom Peak Total KVA Connection ers Load KVA per Customer 10KVA 25KVA 50KVA 100KVA Connect (MW) Connected ed Residential 53,884 20.0 37,348.27 0.69 1,867 747 Commercial 2,145 5.0 9,337.07 4.35 187 Industrial 23 4.0 7,469.65 324.77 75 Others 1,777 2.0 3,734.83 2.10 71 AMOUNT Total 57,829 31.0 57,889.82 35,750.00 57,475.37 85,784.14 128,695.07 (in Php): SUB-TOTAL 16,019,447.2 66,760, 037.35 47,017,465.08 9,613,077.12 (in Php): 5 Note: Power Factor (pf) = 0.85 Demand Factor (df) = 0.63 TOTAL AMOUNT 139,410,026.80 (in Php):

SUBSTATION REAL ESTATE PROPERTY COST

Table 19. Substation Real Estate Property Cost SUBSTATION REAL ESTATE PROPERTY COST Substation Cost per sq.m. (in Area Amount (in PhP) PhP) Dansalan 1,800 2,500 4,500,000.00 Ganassi 600 1,200 720,000.00 Malabang 1200 1,500 1,800,000 Tugaya 600 1,200 720,000 Baloi 600 1,500 900,000 TOTAL (in Php) 8,460,000.00

SUMMARY Table 20. Summary of Asset Valuation SUMMARY Description Percentage to the Total Amount (in PhP) Asset Valuation 69kV Sub-Transmission Lines 43,154,201.55 6.20% Substations, Existing Facilities, and 192,254,465.39 27.64% Equipment 13.2kV Distribution Lines 208,916,997.21 30.04% (Backbone and Laterals) Secondary Lines 8,155,176.69 1.17% Metering/Service Connections 94,962,480.48 13.65% Distribution Transformers 139,410,026.80 20.04% Substation Real Estate Property Costs 8,640,000.00 1.24% Total Replacement Cost of Assets 695,493,348.12 Total 69kV Sub-Transmission Line 56,470,000.00 100% Offered to NGCP GRAND TOTAL 751,963,648.12

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 62

STRENGTHENED POWER SYSTEM RESILIENCE FOR MARAWI AND OUTLYING AREAS – FINAL REPORT 63 United States Agency for International Development 1300 Pennsylvania Avenue, NW