NGCP awaits ERC okay for Aspa procurement

By Lenie Lectura – September 4, 2017

from Business Mirror

The National Grid Corp. of the Philippines (NGCP) is procuring ancillary services from two power firms in Luzon and Mindanao to ensure reliability of the power grid.

NGCP has already signed ancillary services procurement agreements (Aspas) with First Gen Hydro Power Corp. (FGHP) and Therma Marine Inc. (TMI). The Energy Regulatory Commission’s (ERC) approval of these contracts is needed before these could be implemented.

FGHP is the owner and operator of the Pantabangan Hydroelecric Power Plant, while TMI owns and operates a 100-megawatt (MW) power barge in Compostella Valley.

NGCP and FGHP asked the commission to immediately issue a provisional authority to implement their Aspa and allow the grid operator the full recovery of ancillary services cost for the provision of ancillary services effective upon execution of the Aspa.

Ancillary services as defined in Section 4b of the Electric Power Industry Act “refer to those services that are necessary to support the transmission capacity and energy from resources to loads, while maintaining reliable operation of the transmission system.” These services are essential in ensuring reliability in the operation of the transmission system and consequently, in the reliability of the electricity supply in the Luzon, the Visayas and Mindanao grids.

NGCP and FGHP said that as demand for power in Luzon increases, the requirements of the system increases. “Ensuring the integrity of the system is essential to protect the interest of the public. The absence of system reliability and stability will certainly discourage investments and growth,” NGCP and FGHP said in their 12-page application.

As such, they added, “The immediate approval of the Aspa is necessary to maintain the reliability, adequacy, security, stability and integrity of the Luzon grid.”

Meanwhile, NGCP entered into an Aspa with TMO to provide the Mindanao grid contingency reserve (CR) and dispatchable reserve (DR). “Based on the current levels of available contracted AS in the Mindanao grid, the CR and DR have not yet the required levels.

“The immediate approval of the ASPA is a necessity to ensure the reliability and security of the grid,” NGCP and TMI said in their 12-page application.