ERC clears NGCP, First Gen Hydro supply deal

Manila Times.net

REGULATORS have given the green light to an ancillary services deal between the National Grid Corp. of the Philippines and First Gen Hydro Corp.

In a decision, the Energy Regulatory Commission said it approved the ancillary services deal to ensure the “continuous, reliable, efficient and affordable power supply” to consumers.

As operator of the country’s power grid, NGCP is tasked to maintain power reserves for ancillary services to support the reliable operations of the transmission system.

These services include the fast start capability of a power plant 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.

Under their agreement, First Gen Hydro will provide ancillary services to NGCP through its 120.8 megawatt Pantabangan hydroelectric power plant at a cost of P6.20 per kilowatt-hour.

The deal, which was jointly petitioned before the ERC for approval in April, was signed by both parties in response to the insufficient available ancillary services in the Luzon grid.

”The increasing demand for power in Luzon area translates to parallel increase in demand for ancillary services to guarantee continued stability and reliability of power,” they said.

NGCP is led by the SM group’s Henry Sy Jr. and State Grid of China Corporation, while First Gen Hydro is a subsidiary of Lopez-owned First Gen Corp.

EUAN PAULO C. AÑONUEVO