NGCP invites gencos to bid for AS requirements

NGCP substation

The National Grid Corporation of the Philippines (NGCP) has invited interested power generation companies (gencos) to bid for the grid firm’s ancillary service (AS) or reserve power requirements for the Luzon, Visayas, and Mindanao Grids’ reserve power as the summer draws near. 

NGCP, through its third-party bids and awards committee, is particularly inviting all interested grid-connected merchant plants, as well as independent power producers, to both apply for eligibility and participate in the competitive bidding for AS procurement.

Companies that are willing to bid must be able to provide power in a firm-based arrangement for five years, with an annual performance evaluation. 

The deadline for submitting the intent to bid will be this Wednesday. Qualified bidders will be announced on February 4, Friday. 

NGCP needs 1,776.7-megawatts (MW) of firm contracts to cover its reserve requirements. They currently have 809.3MW. 

Based on the grid firm’s bid invitation, contract rates are as follows: Php2.25 per kilowatt-hour (kWh) per scheduled hour for Regulating Reserve; Php1.50/kWh per scheduled hour for Contingency Reserve; Php0.85 per kWh per scheduled hour for Dispatchable Reserve; Php4 per kiloVolt-Ampere-Reactive per occurrence for Reactive Power Support; and an incidental payment for Black Start Service paid per occurrence.

NGCP further said that comments and clarifications on the bidding terms as well as the pre-bid conference should be submitted by February 10. Meanwhile, the deadline of bid submissions and opening of offers will be February 16, 17, and 18 for the Luzon, Visayas, and Mindanao grids, respectively. 

Last week, the Department of Energy (DOE) reiterated its call to NGCP to secure its AS from firm contracts for a clearer outlook on the available power reserve level. NGCP took a beating from the DOE over AS following the Luzon Red Alerts in May and June last year.

NGCP also has firm contracts for reserve power that are up for the Energy Regulatory Commission’s approval.