ERC approves standby power deal between NGCP, EDC

The Energy Regulatory Commission has approved the ancillary services—or standby power supply—procurement agreement (Aspa) between National Grid Corp. of the Philippines and a wholly-owned subsidiary of Energy Development Corp. to help stabilize the transmission system in the Visayas grid.

In an order, the ERC said the Aspa between NGCP and Green Core Geothermal Inc. was necessary to “augment the deficiency and maintain the reliability in the operation of the transmission system and the reliability of the electricity supply in the Visayas grid.”

NGCP, as the operator of the country’s transmission network, is mandated by the Electric Power Industry Reform Act (Epira) to ensure the reliability and integrity of the nationwide electrical grid, by securing ancillary services.

Ancillary services refer to standby power supply that can be tapped in case regular supply to the grid falls short of the requirement.

By having this extra capacity, NGCP can ensure that the facilities and the  grid will not be damaged due to a sudden drop in voltage.

The Aspa between NGCP and Green Core was signed last Feb. 23 and will be valid for three years. Under this agreement, the 192.5-megawatt Panlipinon geothermal facilities in Valencia, Negros Oriental and 112.5-MW Tongonan geothermal plant in Kananga, Leyte—both of which are owned by Green Core—will provide ancillary services to the Visayas grid.

Both parties did not specify the volume of power that will be provided by these geothermal facilities.

Both NGCP and Green Core claim that current levels of available ancillary services in the Visayas grid fall short of required levels.

“The necessity of acquiring ancillary services … cannot be gainsaid. The increasing demand for power in the Visayas area translates to a parallel increase in demand for ancillary services to guarantee continued stability and reliability of power,” the parties noted.

“In sum, to ensure the integrity of the system is to protect the interests of the public, including small and large scale businesses alike. The absence of system reliability and stability will certainly discourage investments and growth,” they added.