Manila Times.net
The National Grid Corp. of the Philippines (NGCP) and First Gen Corp. have signed a reserve power supply agreement to ensure the reliability of power in the Luzon grid.
In a regulatory filing, NGCP said it signed a three-year deal with First Gen’s subsidiary, First Gen Hydro Power Corp., for the supply of ancillary services.
Under the agreement, First Gen will provide ancillary services to NGCP through its 120.8 megawatt Pantabangan hydroelectric power plant at a cost of P6.20 per kilowatt-hour.
Ancillary services refer to those necessary to support the transmission capacity and energy from resources to loads, while maintaining reliable operation of the transmission system.
These include the fast-start capability of a generating unit to provide additional energy to system demand changes; capability to provide reserve capacity necessary to immediately respond to downed power facilities; and the ability to inject or absorb reactive power from the grid to maintain standard voltage levels, among others.
NGCP said available ancillary services in Luzon are insufficient, thus requiring the supply deal with First Gen.
Euan Paulo C. Añonuevo
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