NGCP seeks ERC nod for ASPAs with 3 power firms

By Lenie Lectura – June 19, 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 entered into with three power producers.

In separate filings, the grid operator asked the regulator to approve its ASPAs with First Gen Hydro Power Corp. (FGHPC), Bac-Man Geothermal Inc. (BGI), and Cebu Private Power Corp. (CPPC).

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.

FGHPC owns and operates the 120-megawatt (MW) Pantabangan hydro electric plant in Pantabangan, Nueva Ecija.

BGI owns and operates the Bac-Man geothermal power plant complex located in the provinces of Albay and Sorsogon, which includes the 55MW Bacman 1 geothermal power plant unit 2.

CPPC owns and operates a 50MW bunker diesel power plant in Cebu City.

FGHPC, BGI, and CPPC separately executed five-year ASPAs with NGCP on May 2, 2023.

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.

The NGCP is asking the ERC to immediately approve the ASPAs to maintain the present reliability and security of the grid. “As the demand for power in Visayas increases, the requirements of the system likewise increases. Ensuring the integrity of the system is essential to protect the interests of the public. The absence of the system reliability and stability will certainly discourage investments and growth,” CPPC and NGCP said in their joint application.

FGHPC, BGI and NGCP likewise stated the same in their joint application. “As the demand for power in Luzon increases, the requirement of the system increases. The immediate approval of the ASPAs by this commission is a necessity to maintain the present reliability and security of the grid,” they said.