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The Energy Regulatory Commission (ERC) has granted final approval to multiple Ancillary Services Procurement Agreements (ASPAs) between the National Grid Corporation of the Philippines (NGCP) and several battery
The Energy Regulatory Commission (ERC) has granted final approval to multiple Ancillary Services Procurement Agreements (ASPAs) between the National Grid Corporation of the Philippines (NGCP) and several battery energy storage system (BESS) operators and power generators to strengthen grid stability amid rising demand and growing renewable energy integration.
Approved during its 1127th Regular Commission Meeting, the ASPAs cover both regulating and contingency reserves. These are essential grid support services that allow NGCP to manage sudden changes in supply and demand.
Under the agreements, Universal Power Solutions, Inc. (UPSI) received final approval to supply services from five BESS facilities. The ERC approved the regulating reserve rate for UPSI’s Lamao BESS in Limay, Bataan at PHp 2.0856 per kilowatt per hour (kW/hr), while its contingency reserve rate was set at PHp 0.0811/kW/hr. For UPSI’s BESS in San Manuel, Pangasinan, the regulating reserve rate was pegged at PHp 1.0489/kW/hr and contingency reserve at PHp 0.0649/kW/hr. In Mariveles, Bataan, UPSI’s facility was cleared for regulating reserve at PHp 1.7393/kW/hr. The company’s BESS in Concepcion, Tarlac was approved for contingency reserve at PHp 1.6767/kW/hr, and its Jasaan, Misamis Oriental facility was cleared for contingency reserve at PHp 1.4675/kW/hr.
Giga Ace 4, Inc. was approved to supply regulating reserve at PHp 0.3088/kW/hr and contingency reserve at PHp 1.4373/kW/hr. Masinloc Power Partners Co. Ltd., operating a coal-fired facility in Zambales, was cleared to deliver contingency reserve at PHp 1.6830/kW/hr. Ingrid Power Holdings, Inc. also secured approval for contingency reserve at PHp P0.4875/kW/hr, while Therma Marine, Inc. (Mobile 2) was authorized to supply dispatchable reserve at PHp 1.2097/kW/hr.
Two commissioners, Alexis Lumbatan and Marko Fuentes, dissented from the approvals, while Chairperson Monalisa Dimalanta and Commissioners Catherine Maceda and Floresinda Baldo-Digal voted in favor.
Regulating reserves refer to energy capacity that can be adjusted automatically in real-time to maintain the balance between supply and demand. This service is critical for frequency regulation and minute-by-minute grid stability.
Contingency reserves, on the other hand, are backup energy resources that are activated manually in the event of a sudden power plant outage or transmission failure. These reserves ensure that electricity supply can continue uninterrupted even when a major asset trips offline.
The approval of these ASPAs ensures that NGCP has sufficient standby capacity to respond quickly to system disturbances, reduce the risk of blackouts, and keep power quality within acceptable limits.
As the Philippines transitions toward more intermittent renewable energy sources such as solar and wind, which are variable by nature, ancillary services like these are increasingly vital to keeping the grid secure and responsive.
The ERC emphasized that all ASPAs remain subject to monitoring and compliance with technical standards. The agency also noted that ancillary service costs are passed on to consumers via transmission charges regulated by the commission.
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