The National Grid Corporation of the Philippines (NGCP) is seeking provisional approval from the Energy Regulatory Commission (ERC) for the ancillary service procurement agreements (ASPAs) it has entered into with three power producers,
In a Business Mirror report, NGCP said it has filed for its ASPAs with First Gen Hydro Power Corp. (FGHPC), Bac-Man Geothermal Inc. (BGI), and Cebu Private Power Corp. (CPPC).
FGHPC is the owner and operator of the 120-megawatts (MW) Pantabangan hydroelectric plant located in Pantabangan, Nueva Ecija.
Meanwhile, BGI is the owner and operator of the Bac-Man geothermal power plant complex situated in the provinces of Albay and Sorsogon, which includes the 55MW Bacman 1 geothermal power plant unit 2.
CPPC is the owner and operator of a 50MW bunker diesel power plant in Cebu City.
On May 2, 2023, FGHPC, BGI, and CPPC individually entered into five-year ASPAs with NGCP.
NGCP stated that these ASPAs will come into effect once approved by the ERC.
NGCP is mandated to procure the necessary ancillary services. However, the implementation of these contracts is subject to the Commission’s approval.
In separate joint applications, NGCP, CPPC, and BGI are asking the ERC to immediately approve the ASPAs in order to maintain the reliability and security of the grid.
NGCP and CPPC said that with the growing power demand in Visayas increasing, the system requirements also increase, adding that the absence of system reliability and stability will discourage investment and growth.
Meanwhile, BGI and NGCP stated the same for Luzon island, where demand for power is also increasing, and the immediate approval of the ASPA is needed to maintain the reliability and security of the grid.
Ancillary services are present to support the transmission of power from generators in order to maintain reliable operations. These services are crucial for managing power fluctuations that, if left uncontrolled, could lead to detrimental effects such as equipment damage or even automatic load dropping (ALD) in cases where the integrity of the entire transmission system is at risk.
