NGCP, SN Aboitiz seek ERC nod on new AS procurement

By Lenie Lectura – March 14, 2017

from Business Mirror

The National Grid Corp. of the Philippines (NGCP) and SN Aboitiz Power-Benguet Inc. (SNAP-BI) are asking the Energy Regulatory Commission (ERC) to grant them a provisional authority to implement their ancillary services procurement program (ASPA).

In the 12-page application, NGCP stressed the importance of procuring the contracted ancillary services capacity of SNAP-BI to maintain the reliability of the operation of the transmission system and electricity supply in the Luzon grid.

Ancillary services (AS) are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system and consequently, in the reliability of the electricity supply in the Luzon, Visayas and Mindanao grids.

There is already an existing Aspa between the two firms, but they agreed to execute a new Aspa for a period of another five years.

“Based on the current levels of available contracted AS in the Luzon grid, the contracted AS have not yet met the required levels…with this Aspa, the Luzon grid is assured of AS until 2022,” they said.

NGCP is mandated to procure the required AS. However, the ERC must first approve the contract before the it could be implemented. SNAP-BI, it said, must continue to provide the current contracted capacity ancillary services beyond the 2013 ASPA to maintain the reliability of the power grid.

“Also, as the demand for power in Luzon increases, the requirement of the system to ensure stability, reliability and security, likewise, increases. 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,” they said in their application.