The National Grid Corporation of the Philippines (NGCP) will commission and test the Mindanao-Visayas Interconnection Project (MVIP) in June, the Department of Energy said on Thursday.

In an interview during the "Laging Handa" public briefing, Assistant Energy Secretary Mario Marasigan said the Visayas - Mindanao connection under the project is almost complete.

"If the schedule that was provided as commitment of our system operator and transmission network provider, the NGCP will be followed. We will have the first testing and commissioning of the connection of Mindanao and Visayas in the month of June," he said.

Marasigan stressed that the implementation of the Mindanao-Visayas Interconnection Project (MVIP) will help "lower power rates" in the country.

"These will not only help Visayas and Mindanao, it can also help Luzon when the Cebu-Negros-Panay Interconnection or Enhancement Project is completed. The transmission of power from Mindanao going to Luzon and vice versa can be done," he said.

"Mindanao has excessive power supply... If the interconnection project is opened we can transmit the power to Visayas or Luzon where we do not have enough power supply," he added.

Marasigan said the excessive power supply in Mindanao may augment the needs in the areas with yellow alert warning or the areas with thin power reserve.

However, he said yellow alert does not mean there will be power shortage but he noted rotational brownout and outage may occur in case any power plants experience any problem.

Marasigan said the yellow alert will be declared in May and June due to thin reserves while the area of Visayas may also be placed under the same alert in October and December.

As part of the government's effort to address the power shortage in the country, Marasigan said the DOE is also studying the recommendation of former Energy Secretary Jericho Petilla for the government to build its own 500-megawatt power plant to have a strategic reserve.

"The Electric Power Industry Reform Act (EPIRA) does not give the government the right to build new (power) plants. Because according to our EPIRA, it should be built by the private sector especially if it is for commercial use," he said.

"However, we are currently studying that recommendation and if we need to go to Congress to pass a law to again allow our government to build a (power) plant, which we called the strategic reserve," he added. Robina Asido/DMS