NGCP seeks ERC approval for ancillary service deals
By Lenie Lectura – June 12, 2023
from Business Mirror
The National Grid Corporation of the Philippines (NGCP) is asking the Energy Regulatory Commission (ERC) to provisionally approve the ancillary service procurement agreements (ASPAs) it forged with 6 power producers.
In separate filings, the grid operator asked the regulator to give the go-ahead to its ASPAs with SB Aboitiz Power-Magat, Inc. (SNAP-MI), Therma Marine, Inc. (TMI), Ingrid Power Holdings, Inc. (IPHI), Therma Visayas, Inc. (TV), Therma Luzon, Inc. (TLI), and GNPower Kauswagan Ltd. Co. (GNPK).
Ancillary services support the transmission of power from generators to consumers to maintain reliable operations. These are necessary for NGCP to manage power fluctuations to ensure the quality and reliability of power flowing through its system. If not managed properly, fluctuations can cause damage to sensitive equipment, or even automatic load dropping (ALD) if the fluctuations are severe enough to pose a danger to the transmission system as a whole.
These ASPAs become effective upon approval by the ERC.
“NGCP has the mandate to procure the required AS. However, the Commission must first approve the contract before the same can be implemented,” NGCP said.
Further, NGCP said the immediate approval of the ASPAs is needed to maintain the present reliability and security of the grid.
“As the demand for power in Luzon increases, the requirements of the system likewise increase. Ensuring the integrity of the system is essential to protect the interests of the public. The absence of system reliability and stability will certainly discourage investments and growth.”
SNAP-MI owns and operates the 388MW Magat hydro power plant.
The National Grid Corporation of the Philippines (NGCP) is asking the Energy Regulatory Commission (ERC) to provisionally approve the ancillary service procurement agreements (ASPAs) it forged with 6 power producers.
In separate filings, the grid operator asked the regulator to give the go-ahead to its ASPAs with SB Aboitiz Power-Magat, Inc. (SNAP-MI), Therma Marine, Inc. (TMI), Ingrid Power Holdings, Inc. (IPHI), Therma Visayas, Inc. (TV), Therma Luzon, Inc. (TLI), and GNPower Kauswagan Ltd. Co. (GNPK).
Ancillary services support the transmission of power from generators to consumers to maintain reliable operations. These are necessary for NGCP to manage power fluctuations to ensure the quality and reliability of power flowing through its system. If not managed properly, fluctuations can cause damage to sensitive equipment, or even automatic load dropping (ALD) if the fluctuations are severe enough to pose a danger to the transmission system as a whole.
These ASPAs become effective upon approval by the ERC.
“NGCP has the mandate to procure the required AS. However, the Commission must first approve the contract before the same can be implemented,” NGCP said.
Further, NGCP said the immediate approval of the ASPAs is needed to maintain the present reliability and security of the grid.
“As the demand for power in Luzon increases, the requirements of the system likewise increase. Ensuring the integrity of the system is essential to protect the interests of the public. The absence of system reliability and stability will certainly discourage investments and growth.”
SNAP-MI owns and operates the 388MW Magat hydro power plant.
TMI owns and operates a100MW bunker diesel power plant in Davao de Oro. TLI is the independent power producer administrator of the 700MW Pagbilao coal power plant in Quezon. TVI owns and operates a 354MW coal power plant in Toledo City, Cebu. They are all units of Aboitiz Power.
IPHI, a unit of ACEN Corp., owns and operates 162 modular diesel engine generating units, with a rated capacity of 180MW, in Pililia, Rizal.
GNPK, meanwhile, owns and operates the 4x138MW coal power plant in Lanao del Norte.
The duration of their ASPAs with NGCP is 5years. All ASPAs were signed on May 2.
NGCP is anticipating that a provisional approval for the said ASPAs would be out soon.
“The Philippine Transmission Grid shall be vulnerable to power interruptions resulting from an artificial lack of AS. Without an existing ASPA, NGCP cannot nominate power plants to provide the critical services.”
