NGCP eyes deals to stabilize power grid

National Grid Corp. of the Philippines, operator of the country’s electricity superhighway, is in talks with several power generation companies for eight new ancillary services procurement agreements (ASPAs).

The move is aimed at creating a more stable power grid for the country.

NGCP said it had received proposals for such deals from the Aboitiz-led Therma Luzon Inc. for the 700-megawatt Pagbilao coal-fired power plant; 1590 Energy Corp. for the 225-MW Bauang diesel power facility; conglomerate San Miguel Energy Corp. for the 540-MW Limay combined cycle power plant in Bataan; the 1,200-MW Sual coal plant in Sual, Pangasinan; and the 345-MW San Roque multipurpose hydroelectric power plant in San Manuel, Pangasinan.

Proposals were also received from the Phinma-led Trans-Asia Oil and Energy Development Corp. for its 52-megawatt diesel power facility in Norzagaray, Bulacan; the Lopez-led First Gas Corp. for the 1,000-MW Sta. Rita and 500-MW San Lorenzo natural gas plants in Batangas; and One Subic Power for the 116-MW Subic diesel-fired power facility.

For the Visayas Grid, NGCP said it is currently in discussions with Global Business Power Corp. on ASPA proposals for the 246-MW coal facility in Toledo, Cebu and 164-MW coal fired power plant in the Panay Island.

“NGCP is holding these discussions to arrange for and purchase the required ancillary services which are essential in maintaining power quality, stability and security of the power grid,” NGCP spokesperson Cynthia Perez-Alabanza said in a statement.

“It is important to note that while NGCP is allowed by law to charge for ancillary services, this is a pass-through cost and revenue-neutral—meaning NGCP earns nothing from the ASPAs,” Ms. Alabanza added.

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 incur damage due to sudden drops in voltage, as caused by power plant shutdowns or tripping.—Amy R. Remo