By Lenie Lectura - March 13, 2018
THE Energy Regulatory Commission
(ERC) has issued a provisional approval of the ancillary services procurement
agreement (Aspa) between the National Grid Corp. of the Philippines (NGCP) and
San Roque Power Corp. (SRPC).
Ancillary services are meant to
support the transmission of capacity and energy from resources to loads while
maintaining reliable operation of the transmission system. These services are
essential in ensuring reliability in the operation of the transmission system
and, consequently, in the reliability of the electricity supply in the Luzon,
Visayas and Mindanao grids.
SRPC is the owner and operator of
the 145 x 3-megawatt (MW) San Roque hydroelectric plant in Pangasinan. It has
existing power purchase agreement (PPA) with the National Power Corp.
(Napocor), 115 MW of which is currently contracted to serve bilateral contract
agreement to Napocor, with the remainder of 320 MW is the uncontracted capacity
for ancillary service.
In its 18-page order, the ERC said
in its decision it gave the greenlight for the Aspa because “the 2017 Aspa
between NGCP and SRPC is identical with that of its 2013 Aspa.”
“The commission believes that the
contracted ancillary capacity provided by SRPC is needed to augment the
deficiency of ancillary reserve capacity to be able to maintain the reliability
in the operation of the transmission system and in the reliability of the
electricity supply in the Luzon grid,” the agency said.
The Aspa is valid for five years.
The ERC said it received the Aspa application in December last year.
Both firms said in their application
that as the demand for power in the Luzon increases, the requirements of the
system to ensure stability, reliability and security, likewise, increases.
Thus, ensuring the integrity of the system is essential to protect the interest
of the public. “The absence of system reliability and stability will certainly
discourage investments and growth, thus, there is a need for the immediate
issuance of provisional authority of the subject PA to maintain the reliability
and security of the grid,” they said.
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