ERC approves NGCP-SMGCP deal

By Alena Mae S. Flores – January 13, 2022
from manilastandard.net

The Energy Regulatory Commission granted a provisional authority to National Grid Corp. of the Philippines and SMCGP Philippines Energy Storage Co. Ltd. on their ancillary services procurement agreement.

“Considering that RR [regulating reserve] is one of the ancillary services that is essential in ensuring the power quality and reliability of the grid, the necessity of allowing NGCP to contract AS in the form of RR is important as it will help maintain the required power quality and voltage level in the Visayas grid,” the agency said.

It said it granted the provisional authority considering the situation of the Visayas grid and the pivotal role of SPESCL’s operation.

The parties said the absence of system reliability and stability would discourage investments and growth, as the demand for power in the Visayas increases and more variable renewable energy plants are commissioned, thereby increasing the requirements of the system to maintain the reliability and security of the grid.