THE National Grid Corp. of the Philippines (NGCP) has received provisional authority from the Energy Regulatory Commission (ERC) to implement four ancillary service procurement agreements (ASPAs).
In separate fillings, the grid operator said that the ERC approved ASPAs the NGCP entered into with Universal Power Solutions, Inc. (UPSI), Therma Visayas, Inc. (TVI), SN Aboitiz Power-Magat, Inc. (SNAP-MI), and Masinloc Power Partners Co. Ltd. (MPPCL).
According to Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, ancillary services are “necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the Grid Code.”
The NGCP said the new AS suppliers include the 388-megawatt (MW) Magat hydroelectric power plant, operated by SNAP-MI located on the border of Isabela and Ifugao provinces.
The hydro power plant was privatized in 2007 and is now owned by SNAP, a joint venture between Norwegian renewables company Scatec and AboitizPower Corp.
Other AS sources are the 20-MW battery energy storage system (BESS) power plant of UPSI in Toledo City, Cebu, the 10-MW BESS power plant of MPPCL in Masinloc, Zambales, and TVI’s 353.94-MW circulating fluidized bed coal-fired power plant in Toledo City, Cebu.
“NGCP is directed to optimize economic and technical dispatch of the available AS capacity, wherein it shall schedule a mix of hourly AS capacity, at the least cost, for a reserve needed to maintain power quality, security, reliability, and integrity of the grid,” according to the fillings.
The rate to be paid by the company in AS costs will be shouldered by the customers in accordance with the approved ancillary services-cost recovery mechanism. — Sheldeen Joy Talavera
