NGCP secures more ancillary services with gencos

The National Grid Corp. of the Philippines (NGCP) has secured more ancillary services to ensure power supply in the Luzon and Mindanao power grids until 2022.

The Energy Regulatory Commission (ERC) has granted provisional authorities (PAs) on NGCP’s ancillary services procurement agreements (ASPA) with several power generators.

Ancillary services (AS) are necessary to support the transmission capacity, maintaining reliable operation of the transmission system and electricity supply in the grid.

In Luzon, the ERC approved NGCP’s applications with First Gen Hydro Power Corp. to ensure the reliability of the Luzon grid.

The grid operator’s AS with First Gen will be sourced from the two-unit Pantabangan hydroelectric power plant (HEPP) which has a total rated capacity of 120.8 megawatts (MW).

The deal covers up to 45 MW each unit of regulating reserve (RR) rate at P3 per kilowatt-hour (kwh), up to 45 MW contingency reserve (CR) at P2.25 per kwh rate, and up to 60 MW each unit of dispatchable reserve (DR) amounting to P1.25 per kwh.

RR is the capacity allocated to cover inter and intrahour variations in demand. CR refers to the capacity allocated to cover the loss or failure of a generating unit or a transmission line in order to maintain balance between generation and load.

DR refers to the generating capacity that are readily available for dispatch in order to replenish the contingency reserve service whenever a generating unit trips or a loss of a single transmission interconnection occurs

Meanwhile, the power regulator has also cleared NGCP’s two ASPAs with Therma Marine Inc. (TMI), which operate two power barges called Mobile 1 and 2, each with a rated capacity of 100.33 MW in Maco, Compostella Valley and Nasipit, Agusan del Norte.

Under the deal, TMI will provide ancillary service of up to 48 MW each from both Mobile 1 and 2.

The deals will ensure secure power supply and competitive electricity prices in the Mindanao grid until 2022.

Based on the ERC approvals, the applicable rates for the ASPA would be P2.25 per kwh for the CR and P1.25 per kwh for the DR.