Ambuklao facility to act as back-up power supplier for NGCP
AMBUKLAO, Philippines – SN Aboitiz Power (SNAP) plans to use the entire capacity of the recently rehabilitated 105-megawatt Ambuklao hydroelectric power facility to provide backup power supply to the National Grid Corp. of the Philippines and help ensure the stability of the Luzon grid.
SNAP president and CEO Emmanuel V. Rubio told reporters during the inauguration of the power plant that the company expected to sign an ancillary services agreement with the NGCP by the end of next month.
“The approach for Ambuklao is that because of its capability, we’re looking at providing ancillary service as well…. NGCP needs to sign additional capacities for ancillary. I don’t think they have met the required ancillary requirements in the grid and Ambuklao is one of those plants that can meet the requirement,” Rubio said.
Rubio said that while SNAP has not received the certification yet, the Ambuklao facility has “passed” the test to provide ancillary services – the industry term for back-up power supply – as conducted by the NGCP.
“Once certified, then we can enter into a supply contract with NGCP and then it has to be approved by the Energy Regulatory Commission. We’re even offering the whole plant. It’s good for us; it’s about where we can add value,” Rubio said.
He noted that hydropower plants are preferred by NGCP to provide ancillary services because of its cost competitiveness. In terms of performance, compared to diesel and coal, a hydroelectric power facility cycles much faster than those plants.
Rubio said, however, that should the opportunity arise, SNAP will be willing to enter into bilateral contracts. Although for now, the priority is the provision of ancillary services.
SNAP, a joint venture between SN Power Invest AS of Norway and Aboitiz Power Corp., inaugurated the Ambuklao hydroelectric power plant on Wednesday, marking the full commissioning of the rehabilitated facility after being shut down for 12 years.
“Backed by the strong technical expertise of our Norwegian partner SN Power [majority owned by Statkraft of Norway, the leading renewable energy provider in Europe], our joint venture infused another $280 million, in addition to the $325 million purchase price, to embark on the rehabilitation and refurbishment of the Ambuklao and Binga plants not only to restore the capacity of these historic facilities but to also increase them by 105 MW and 120 MW, respectively,” Rubio said earlier.
“The rehabilitation of Ambuklao plant alone sets another milestone in the Philippine hydropower industry as the first of its kind in terms of scope and magnitude,” Rubio said.
