NGCP renews call for power producers to offer ancillary services to secure PHL’s power grids
By Lenie Lectura – July 9, 2018
from Business Mirror
THE National Grid Corp. of the Philippines (NGCP) wants to procure new ancillary services (AS) from interested power producers nationwide.
In a published invite on Monday, the grid operator called anew all interested grid-connected merchant plants and independent power producers to participate in the provision of AS in order to maintain the reliability and security of the power grids.
“All generating companies currently on commercial operations and have available, uncontracted capacity are invited to apply for accreditation and present its intent to offer AS, with priority for regulating reserve, contingency reserve and black start [BS] service for Luzon, the Visayas and Mindanao,” said the NGCP.
Ancillary services are meant to support the transmission of 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.
Regulating reserve is the capacity allocated to cover inter and intra-hour variations in demand, while contingency reservere refers to the capacity allocated to cover the loss or failure of a generating unit or a transmission line in order to maintain balance between generation and load.
The NGCP offers to pay the capacity required to ensure the reliability, integrity and security of the transmission system. In particular, it could pay P2.25 per kilowatt hour to P3 per kWh for regulating reserve offers; P1.50 per kWh to P2.25 per kWh for contingency reserve offers; P1.25 per kWh for dispatchable reserve offer; P4 per kWh for reactive power support; and monthly payment for operation and management plus incidental energy payment for BS service.
Dispatchable reserves refers to the generating capacity readily available for dispatch in order to replenish the contingency reserve service whenever a generating unit trips or a loss of a single transmission interconnection occurs.
After the NGCP has accepted preferred offers, an ancillary services procurement agreement (Aspa) will be executed and filed with the Energy Regulatory Commission (ERC) for approval.
The Aspa will be implemented upon the grant of provisional authority or final approval from the ERC.
“The process of accreditation and acceptance of AS offers shall be conducted consistent with the latest versions of the Philippine Grid Code. Open Access Transmission Services Rules and ASP Plan,” the NGCP said.
