PRCD-2021-09-0054

PM-PE-TPD-18
Rev. 01 Page 1 of 4
PROCEDURE MANUAL Effective Date:

Title: PROJECT PRIORITIZATION MATRIX

Volume No.: 7A PLANNING AND ENGINEERING

PURPOSE
1.1 To establish the project prioritization for inclusion in the TDP and in support to the NGCP
capital expenditure application to the ERC.
1.2 The matrix will be used to determine the importance of projects based on the derived

D
scoring value of each project.

2.0 SCOPE

VE
2.1 The procedure describes the steps needed to evaluate objectively the proposed projects
for approval to come up with a list of projects, which are ranked in the order of priority.
2.2 The projects will be ranked according to a set of criteria to determine which are the most
important to focus on first and which should be put on hold or discontinued.
2.3 To distinguish between high-priority and lower-priority projects.

3.0 DEFINITION OF TERMS/ACRONYMS

O
3.1 Definition of Terms

3.1.1 Congestion – refers to a situation where cheaper power from a Generating Unit
cannot be dispatched and is replaced by more expensive power to supply the
PR

demand because (i) the transmission limit of a transmission line or the capacity
of a transformer is reached and no more additional power may be transmitted
through this line or transformer; and/or (ii) the Grid Operating Criteria, as it is
defined in PGC 6.2.3, limits the transmission capabilities in some portions of
the network.
3.1.2 Environmental Impact – refers to a project which aims to respond to significant
changes in demand due to fluctuation in temperature and weather condition to
AP

ensure that systems infrastructure can adapt to the impacts of climate change.
3.1.3 Event Occurrence – refers to the number of times an undesirable event
occurred within the planning horizon
3.1.4 Load Growth – refers to a project which aims to ensure transmission facility
adequacy and given topmost priority projects to address the projected
overloading which will occur even during normal condition or no outage
condition.
3.1.5 Generation Entry – refers to a project that aims to accommodate new power
plant connections to the grid as well as bulk generation capacity additions,
which are typically the driving forces behind new transmission backbone
development.

Prepared by: Endorsed by: Approved by:

FERNANDO S. JAVIER REDI ALLAN B. REMOROZA RICO C. VEGA

Transmission Planning Senior Assistant Vice President and Vice President, Planning and
Manager, Mindanao System Head, Transmission Planning Engineering
Planning Division Department
FM-NGCP-01C Rev. 1

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

PM-PE-TPD-18 Title: PROJECT PRIORITIZATION Rev. 0 Page 2 of 4

3.1.6 Grid Criticality – refers to a project aimed at securing power for critical national
infrastructure and public service sites such as national defense installations,
hospitals, and airports, among others. This can also refer to a project aimed at
supplying power to load centers.
3.1.7 Grid – refers to the high voltage backbone system of interconnected
transmission lines, substations, and related facilities, located in Luzon, the
Visayas and Mindanao, operated and maintained by the NGCP, or as may be
determined by the Energy Regulatory Commission (ERC) in accordance with
Section 45 of the Republic Act No. 9136.
3.1.8 Island Interconnection – refers to a project that aims to connect various
islands' off-grid power systems to improve supply security and system reliability.

D
3.1.9 Market Simulation Software – refers to a program which is based on
optimization and capable of simulating the operation of an electricity market
3.1.10 Management Direction Decision – refers to the project that is led by
management decisions as the most important project to complete.

VE
3.1.11 Net Present Value – refers to the difference between the present values of
cash inflows and cash outflows.
3.1.12 Power Quality – refers to a project which aims to maintain the power quality at
different nodes in the system through the installation of power compensating
equipment, i.e., capacitor banks, shunt reactors, and static VAR compensator
(SVC), among others.
3.1.13 Security Constrained Unit Commitment – Unit commitment with additional
O
constraints in such a way that the thermal limits of transmission lines are not
violated even during N-1 contingency event.
3.1.14 System Reliability – this refers to a project which aims to provide N-1
contingency. It also refers to a project that will upgrade aging facilities or replace
defective equipment.
PR

3.1.15 Unit Commitment – planning an economic dispatch schedule of generating

units while satisfying the generators’ operational requirements and the
expected demand

3.2 ACRONYMS

3.2.1 DPD - Detailed Project Discussion

3.2.2 ERC - Energy Regulatory Commission
AP

3.2.3 TDD - Transmission Development Division

3.2.4 LSPD - Luzon System Planning Division
3.2.5 MSPD - Mindanao System Planning Division
3.2.6 NPV - Net Present Value
3.2.7 PGC - Philippine Grid Code
3.2.8 RE - Renewable Energy
3.2.9 PSSSS - Planning Standards and Special Studies Section
3.2.10 SCUC - Security Constrained Unit Commitment
3.2.11 VSPD - Visayas System Planning Division

4.0 GENERAL REQUIREMENTS

4.1 This procedure requires the following information:

4.1.1 Network model for Luzon, the Visayas or Mindanao Grid that reflects the state of
the network
4.1.2 Detailed Project Discussion of all projects
4.1.3 SCUC model including all the projects (as necessary)
4.2 Market simulation software capable of simulating the security constrained unit
commitment model
FM-NGCP-01C Rev.1

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

PM-PE-TPD-18 Title: PROJECT PRIORITIZATION Rev. 0 Page 3 of 4

5.0 PRIORITIZATION MATRIX

The Prioritization Matrix is a method for determining project priorities. Below is a basic matrix
that can be expanded depending on the number of tasks to be prioritized.

5.1 Scoring Matrix

Key
Weight Point
No. Prioritization Criteria Breakdown
(%) Score
Item
Event Occurrence 5

D
Project Driver (Load Growth, Generation
1 Technical 40 20
Entry, Power Quality, System Reliability)
Island Interconnection 15

VE
Grid Criticality (Load Centers) 15
Renewable Energy 5
LGU’s Project Synchronization (ROW,
2 Strategic 40 8
DPWH, DOTr)
Environmental Impact 2
Planning Horizon (Long-Term) 10
O
Net Present Value 15
3 Economics 20
Benefit-Cost Ratio 5
PR

5.0 REFERENCE

5.1 The Philippine Grid Code 2016 Edition

5.2 NGCP Standard for Transmission System Planning

6.0 APPENDIX

6.1 A. Project Prioritization Matrix

AP

6.2 B. Scoring Matrix

6.3 C. Decision Matrix

FM-NGCP-01C Rev.1

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

PM-PE-TPD-18 Title: PROJECT PRIORITIZATION Rev. 0 Page 4 of 4

7.0 PROCESS FLOW

OIC – CTO and concurrent

Assistant Vice President and Head
LSPD / VSPD / MSPD / TDD Vice President and Head,
TPD
Planning and Engineering

START

1
Data Gathering and
Request

D
2
Include the Activity in
the Work Plan

4
Evaluate all projects
based inf the defined
criteria

Project Scoring
VE
O
5
Application of Relative
Weights Score
PR

6
Project Ranking

7
AP

Preparation of Summary
and Report

8 9
Review of Result Approve and Endorse
the Report

10
Transmission Result

END

FM-NGCP-01C Rev.1

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

PM-PE-TPD-18 Title: PROJECT PRIORITIZATION Rev. 0 Page 5 of 4

TYPICAL
ITEM ACTIVITY RESPONSIBLE
DURATION
Transmission Planning
1.1 Gather/request latest DPD of
Senior & Principal Two (2) working
1 projects and the SCUC model
Engineer, Senior & Lead days
including all the projects.
Specialist
2.1 Include the conduct of Project
Prioritization in Work Plan for all
Transmission Planning
group. Three (3) working
2 Manager (LSPD, VSPD,
2.2 Assign TPD personnel to day

D
prepare the required inputs for MSPD, TDD)
market simulation software
3.1 Technical, Strategic, and
Transmission Planning
Economic. Assessment of the

VE
Senior & Principal Four (4) working
3 project based on the Detailed
Engineer, Senior & Lead days
Project Discussion and other
Specialist
documents.
Transmission Planning
4.1 Score projects based on scores
Senior & Principal
per range (Appendix A). all
Engineer, Senior & Lead
branches, examine the number of
Specialist
O
times a thermal constraint is binding
4 Transmission Planning One (1) working day
as well as the shadow price of each
Senior & Principal
binding thermal constraint. Identify
Engineer, Senior & Lead
branches having significant
Specialist
occurrence of congestion and high
PR

shadow prices.
Transmission Planning
5.1 Apply relative weights on scores
Senior & Principal One (1) working
based on criteria matrix (Appendix
5 Engineer, Senior & Lead days
B).
Specialist
AP

6.1 Get ordered list of projects by Transmission Planning

arranging projects based on the Senior & Principal One (1) working
6
highest to lowest overall weight score Engineer, Senior & Lead day
accordingly. Specialist
Transmission Planning
Senior & Principal One (1) working
7 7.1 Prepare the report/summary for
Engineer, Senior & Lead day
the conducted project prioritization.
Specialist

8.1 Endorse to LSPD, VSPD, and Transmission Planning

Three (3) working
8 MSPD the report/summary for Supervisors
days
further deliberation.

Three (3) working

Assistant Vice President
9 9.1 Approval and endorse report days
and Head TPD

FM-NGCP-01C Rev.1
R3
***Electronically approved by gcy, bcd, flm, fsj,
vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

PM-PE-TPD-18 Title: PROJECT PRIORITIZATION Rev. 0 Page 6 of 4

10.1 Consider the

comments/inputs from LSPD,
VSPD, and MSPD and
endorse to AVP and Head, Transmission Planning
Three (3) working
10 TPD for review/approval. (e.g. Manager (LSPD, VSPD,
days
furnace, motor, etc.). Then, MSPD, TDD)
connect the admittance/
starting admittance to the
connection point.

D
VE
O
PR
AP

FM-NGCP-01C Rev.1

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

APPENDIX A: PROJECT PRIORITIZATION MATRIX TOOL

Weight Score Rating Scale

D
Point
Key Prioritization Items
Score (%) 1 - Not Required 2 - Moderatley Required 3 - Highgly Required or Mandated

Event Occurences 5 Highly Required to technical or with

Moderately required technical

VE
l
ca

Project Driver (Load Growth, Generation Entry, Power Not all technical objectives are management direction
40% objectives are important to the
ni

20 important to the project Objectives: The project covers all

ch

Quality, System Reliability) project

Te

criteria
Island Interconnection 15
Grid Criticality (Load Centers) 15
Renewable Energy 5 Highly Required to strategic or with
Moderately required to
c

Not all strategic objectives are management direction

gi

LGU’s Project Synchronization (ROW, DPWH, DOTr) 8 40% strategic objective and
te

important to project Objectives; very important to project

ra

O
important to project
St

Environmental Impact 2 impact

Planning Horizon (Long-Term) 10

Net Present Value 15

ic

Negative result for NPV and Positive Result of NPV and Positive Result of NPV and BCR is
om

PR
20%
BCR is less than 1. BCR is greater than 1.0 greater than 1.5
on

Benefit-Cost Ratio 5
Ec

Totals 100% 100%

AP

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

APPENDIX B: SCORING MATRIX

Technical (40%) Strategic (40%) Economic (20%)

Overall Factor
LGU’s Project Weighted %
Name of the Project Event Island Total Grid Criticality Renewable Environmental Planning Horizon Total Total
Project Driver Synchronization Net Present Value Benefit-Cost Ratio

D
Occurences Interconnection (Load Centers) Energy Impact (Long-Term) Score
Weight (ROW, DPWH, DOTr) Weight Weight

Score Score Score Score Score Score Score Score Score Score
Rating Rating Rating Rating Rating Rating Rating Rating Rating Rating
5% 20% 15% 40% 15% 5% 8% 2% 10% 40% 15% 5% 20% 100%
1 Project 1 3 0.15 3 0.60 1 0.15 0.90 2 0.30 1 0.05 3 0.24 1 0.02 3 0.30 0.91 2 0.30 2 0.10 0.40 2.21 73.67%
2 Project 2 2 0.10 1 0.20 3 0.45 0.75 3 0.45 2 0.10 2 0.16 2 0.04 3 0.30 1.05 2 0.30 2 0.10 0.40 2.20 73.33%

VE
3 Project 3 3 0.15 3 0.60 3 0.45 1.20 3 0.45 3 0.15 1 0.08 1 0.02 2 0.20 0.90 3 0.45 3 0.15 0.60 2.70 90.00%

Note:

1. The highest weighted score receive is considered

as "Highly Priority" and lowest score is the "Low
Priority project".

O
2. If the project to be considered are to many rank
the result based on the weighted scores.

PR
AP

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

APPENDIX C: DECISION SCORING MATRIX

Overall Factor
Name of the Project % Prioritization Ranking

D
Weighted Score
1 Project 1 2.21 73.67% LP 1
2 Project 2 2.20 73.33% MP 2
3 Project 3 2.70 90.00% HP 3

VE
Note:

HP = High Priiority
MP = Medium Priority
LP = Low Priority

O
*If the project to be considered are to many rank the result based on
the weighted scores.

PR
AP

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp
 PRCD-2021-09-0054

Name Group Date & Time Action/Status Remarks

Pigao, Kevin Jamir F. Grid Asset And Project 06 Sep 2021 16:44 Submitted N/A
Planning Division
Javier, Fernando S. Mindanao System 06 Sep 2021 16:46 Approved N/A
Planning Div
Loria, Vicente N. Grid Asset And Project 06 Sep 2021 16:47 Approved N/A
Planning Division

D
Yu, Garri Mikhail C. Mindanao System 06 Sep 2021 16:47 Approved N/A
Planning Div
Baylosis, Michael R. Visayas System 06 Sep 2021 18:23 Approved N/A
Planning Div

VE
Buluran, Eufemio Jr. Luzon System 06 Sep 2021 18:53 Approved N/A
C. Planning Div
De Torres, Buena Visayas System 07 Sep 2021 09:33 Approved N/A
Amor Capua Planning Div
Maala, Franklin L. Transmission Planning 08 Sep 2021 17:47 Approved N/A
Dept
O
Remoroza, Redi Allan Transmission Planning 08 Sep 2021 19:45 Approved N/A
B. Dept
Cuyugan, Maria Luisa Assistant Chief 08 Sep 2021 19:54 Approved N/A
PR

F. Technical Officer -
P&E
Vega, Rico C. Office Of The Chief 08 Sep 2021 22:05 Approved N/A
Technical Officer
AP

***Electronically approved by gcy, bcd, flm, fsj,

vnl ,mrb ,ecb ,rbr ,lfc ,rcv 08-Sep-2021 22:05 Submitted by kfp