NGCP calls for holistic, multilateral solution to energy woes

The need to clarify government energy policies as well as address right-of-way problems and local government-level red tape are the main contributors in the slower-than-desired implementation of the same policies and the completion of infrastructure projects, according to National Grid Corp. of the Philippines (NGCP).

In terms of securing contracts for ancillary services or reserve capacity that is needed to maintain grid stability, NGCP said in a statement it was “awaiting clarification on some matters regarding DOE (Department of Energy) guidelines.”

The grid operator said a request for such clarification was submitted to the DOE last July 15 or three weeks ago.

“NGCP sees this as crucial to effectively and efficiently comply with the directive to convert from nonfirm to firm contracts,” the company said.

Energy Secretary Alfonso Cusi and other DOE officials have repeatedly called out NGCP for not securing all its ancillary services that it needed through firm contracts.

With firm contracts, power suppliers are committed to deliver on demand of the buyer such as NGCP. With nonfirm contracts, the supplier may decide to use the supply elsewhere, such as selling at the spot market.

In recent hearings at the Senate and at the House of Representatives, energy officials said the recent brownouts would not have occurred had NGCP followed the policy.

Also, regarding the delays in the Grid Operations and Maintenance Program (GOMP), which covers a schedule of planned outages of power plants, NGCP said these were “borne out of clarifications sought from DOE” regarding the program submitted for 2020. NGCP said it subsequent GOMPs for 2021-2023 were compliant to policy and has been submitted to the DOE for approval last June as well as to the Independent for Electricity Market Operator of the Philippines for concurrence.