NGCP-SRPC support-services deal gets regulatory approval

By Lenie Lectura – March 13, 2018
from Business Mirror

THE Energy Regulatory Commission (ERC) has issued a provisional approval of the ancillary services procurement agreement (Aspa) between the National Grid Corp. of the Philippines (NGCP) and San Roque Power Corp. (SRPC).

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, Visayas and Mindanao grids.

SRPC is the owner and operator of the 145 x 3-megawatt (MW) San Roque hydroelectric plant in Pangasinan. It has existing power purchase agreement (PPA) with the National Power Corp. (Napocor), 115 MW of which is currently contracted to serve bilateral contract agreement to Napocor, with the remainder of 320 MW is the uncontracted capacity for ancillary service.

In its 18-page order, the ERC said in its decision it gave the greenlight for the Aspa because “the 2017 Aspa between NGCP and SRPC is identical with that of its 2013 Aspa.”

“The commission believes that the contracted ancillary capacity provided by SRPC is needed to augment the deficiency of ancillary reserve capacity to be able to maintain the reliability in the operation of the transmission system and in the reliability of the electricity supply in the Luzon grid,” the agency said.

The Aspa is valid for five years. The ERC said it received the Aspa application in December last year.

Both firms said in their application that as the demand for power in the Luzon increases, the requirements of the system to ensure stability, reliability and security, likewise, increases. Thus, ensuring the integrity of the system is essential to protect the interest of the public. “The absence of system reliability and stability will certainly discourage investments and growth, thus, there is a need for the immediate issuance of provisional authority of the subject PA to maintain the reliability and security of the grid,” they said.