ERC okays NGCP-Aboitiz service deal

By Donnabelle L. Gatdula (The Philippine Star) Updated January 06, 2012 12:00 AM


MANILA, Philippines - The Energy Regulatory Commission (ERC) has approved the ancillary services procurement agreement (ASPA) between National Grid Corporation of the Philippines (NGCP) and SN Aboitiz Power-Benguet Corp. (SNAP-Benguet).


Based on the ERC approval, the applicable rates for the ASPA would be P6.36 per kilowatt-hour (kwh).


ERC said the proposed rate, as price cap, shall be applied on a monthly basis.


SNAP-Benguet hydro will use the power generated from its 105-megawatt (MW) Ambuklao hydro power plant to provide ancillary services to NGCP, a top company official said.


SNAP-Benguet is a joint venture between Norwegian firm SN Power of Norway and Aboitiz Power Corp. (APC).


NGCP and APC already have an existing ancillary services agreement using APC’s 100-MW Binga hydropower plant in Itogon.


Ancillary services are those capacity and energy needed to maintain a stable and reliable operation of the interconnected transmission system.


Providers of ancillary services should have a fast-start capability to provide additional energy to the grid system demand changes. It should have the capability to provide reserve capacity necessary to immediately respond to generating units or transmission line failures. It should likewise have the ability to inject or absorb reactive power from the grid to maintain standard voltage levels.


The hydro plants were turned over to SN Aboitiz in July 2008 after submitting the group offered the highest bid of $325 million.


Built in 1956, Ambuklao in Bokod, Benguet was the first among the country’s largest hydroelectric power plants with an original installed capacity of 75 MW. Siltation and other technical problems caused by the 1990 earthquake that struck Benguet led to suspension of operations in 1999.


Following the plant’s privatization in 2008, SNAP-Benguet began Ambuklao’s rehabilitation to restore the plant and increase its capacity to 105 MW. In June 2011, one of the plant’s three turbine units went on-line.


SN Power is a hydropower development company operating exclusively in emerging markets. It is working to develop a portfolio in the range of 3,000 MW of hydropower plants by 2015, while combating climate change and contributing to sustainable development.