By
Lenie Lectura - July 9, 2018
THE National Grid Corp.
of the Philippines (NGCP) wants to procure new ancillary services (AS) from
interested power producers nationwide.
In a published
invite on Monday, the grid operator called anew all interested
grid-connected merchant plants and independent power producers to participate
in the provision of AS in order to maintain the reliability and security of the
power grids.
“All generating
companies currently on commercial operations and have available, uncontracted
capacity are invited to apply for accreditation and present its intent to
offer AS, with priority for regulating reserve, contingency
reserve and black start [BS] service for Luzon, the Visayas and Mindanao,”
said the NGCP.
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, the Visayas and Mindanao grids.
Regulating reserve is
the capacity allocated to cover inter and intra-hour variations in demand,
while contingency reservere refers to the capacity allocated to cover the loss
or failure of a generating unit or a transmission line in order to maintain
balance between generation and load.
The NGCP offers to pay
the capacity required to ensure the reliability, integrity and security of the
transmission system. In particular, it could pay P2.25 per kilowatt hour to P3
per kWh for regulating reserve offers; P1.50 per kWh to P2.25 per kWh for
contingency reserve offers; P1.25 per kWh for dispatchable reserve offer; P4
per kWh for reactive power support; and monthly payment for operation and
management plus incidental energy payment for BS service.
Dispatchable reserves
refers to the generating capacity readily available for dispatch in order to
replenish the contingency reserve service whenever a generating unit trips or a
loss of a single transmission interconnection occurs.
After the NGCP has
accepted preferred offers, an ancillary services procurement agreement (Aspa)
will be executed and filed with the Energy Regulatory Commission (ERC) for
approval.
The Aspa will be
implemented upon the grant of provisional authority or final approval from the
ERC.
“The process of
accreditation and acceptance of AS offers shall be conducted consistent with
the latest versions of the Philippine Grid Code. Open Access Transmission
Services Rules and ASP Plan,” the NGCP said.
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