ERC okay on grant of PA for Aspa sought

By Lenie Lectura - April 4, 2017
http://www.businessmirror.com.ph/erc-okay-on-grant-of-pa-for-aspa-sought/

The National Grid Corp. of the Philippines (NGCP), Energy Development Corp. (EDC) and Green Core Geothermal Inc. (GCGI) are asking the Energy Regulatory Commission (ERC) to grant them a provisional authority (PA) to implement their ancillary services procurement program (Aspa).

In separate applications, NGCP agreed to procure and EDC agreed to supply regulating reserve (RR) services to the grid operator for a period of five years. The same application was filed by NGCP and GCGI.

Ancillary services (AS) are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system and, consequently, the reliability of the electricity supply in the Luzon, Visayas and Mindanao grids.

In their respective applications, the parties stressed the importance of procuring the contracted AS capacity from EDC and GCGI “to ensure and maintain the reliability, security, stability and integrity of the Visayas grid”.

“The immediate approval of the Aspa by this honorable commission is a necessity to maintain the present reliability and security of the grid,” the parties said in their respective applications.

GCGI said the current levels of available contracted AS in the Visayas grid have not yet reached the desired levels necessary for system reliability.

“As the demand for power in the Visayas increases, the requirements of the system to ensure stability, reliability and security, likewise, increase. 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,” GCGI said.

EDC, for its part, said the benefits RR would provide to NGCP “cannot be overemphasized”. As such, the parties agreed that EDC shall already commence providing RR, in whole and in part, pending approval, provisional or final, of the application. GCGI also stated the same in its application with NGCP.

Aside from asking the ERC to issue a provisional authority to implement their respective Aspas, NGCP also asked the ERC to allow the full and retroactive recovery of AS cost for the provision of RR by EDC and GCGI pursuant to the subject Aspas.

EDC is the owner and operator of the Nasulo geothermal power plant, which was certified by NGCP as capable of providing AS in the form of RR.

GCGI, meanwhile, owns and operates the Palinpinon geothermal plant II, which was also certified and accredited by NGCP as capable of providing AS in the form of RR.