PRIVATELY OWNED National Grid Corp. of the Philippines (NGCP) has asked the Energy Regulatory Commission (ERC) for provisional authority to implement its ancillary services procurement agreement (ASPA) with a power plant in Luzon and another in the Visayas.
In a joint application filed with the ERC, the power grid operator and Therma Luzon, Inc. (TLI) have sought approval for the 60 megawatts (MW) that NGCP will buy from the power plant’s units 1 and 2 in Pagbilao, Quezon province on a firm basis, and another 60 MW on a non-firm, or as needed, basis.
Separately, NGCP and Palm Concepcion Power Corp. (PCPC) are asking approval for an ASPA for 15 MW on a firm basis, and 15 MW on a non-firm basis. Both applications sought provisional authority ahead of the ERC’s final approval.
NGCP forges agreements to procure “ancillary services” — in this case power supply — to ensure reliability in the operation of the transmission system and consequently, in the reliability of the electricity supply in the Luzon, Visayas and Mindanao grids.
Ancillary services are necessary to support the transmission of capacity and energy from energy resources to electricity load centers, while maintaining the reliable operation of the transmission system.
NGCP said the ancillary services to be sourced from TLI and PCPC are to be used as contingency reserve, or power that will be allocated to immediately answer any reduction in supply when the largest power generating unit online fails to deliver.
“In view of the need for NGCP to procure ancillary services from PCPC, the Applicants on 23 December 2017, executed the ASPA. NGCP agreed to procure and PCPC agreed to supply Ancillary Services in the form of CR for a period of two (2) years under firm and non-firm arrangements,” the joint NGCP-PCPC application stated.
The agreement with TLI, meanwhile, is an extension of a previous ASPA forged in March 2013 with a term of five years. The past deal was granted provisional authority by the ERC. The commission oversees power supply deals to regulate future cost recovery.
“In view of TLI’s proposal to continue providing ancillary services, NGCP agreed to procure and TLI agreed to supply Ancillary Services in the form of Contingency Reserve… under firm and non-firm arrangements,” the companies said.
During the period of negotiation, NGCP conducted several tests on the TLI power plant, and certified that it had met and complied with the standard ancillary services technical requirements as capable of providing contingency reserve. The new procurement agreement between the two was forged on May 29, 2018.
TLI is the independent power producer administrator of the 700-MW coal-fired power generation plant in Pagbilao. PCPC is the owner and operator of the 135-MW coal-fired power plant in Barangay Nipa, Concepcion, Iloilo province. The ERC is set to hear both applications next month.
Separately, NGCP said on Wednesday that it had energized the newly constructed Aurora-Polanco 138-kiloVolt (kV) transmission line 1 on June 20, and line 2 on July 22, 2018 as part of its efforts to continuously upgrade its facilities and to address the recent voltage fluctuations in Northern Mindanao.
The company said it has started several projects to mitigate congestion and voltage issues in the area and ensure the integrity of the entire grid arising from Mindanao’s rapid load growth in recent years.
The Aurora-Polanco 138-kV project is one of NGCP’s initiatives to reinforce power transmission services in the Zamboanga del Norte area.
Dipolog City, Dapitan City, and the Municipality of Polanco are three important load centers in the Zamboanga del Norte area, which have been growing in power consumption year after year, it said. — Victor V. Saulon
