ERC gives green light to SNAP, NGCP ancillary power deals

By Lenie Lectura - May 16, 2019

https://businessmirror.com.ph/2019/05/16/erc-gives-green-light-to-snap-ngcp-ancillary-power-deals/

THE Energy Regulatory Commission (ERC) has approved the joint application filed by the SN Aboitiz Power (SNAP) group and the National Grid Corp. of the Philippines (NGCP) for approval of their ancillary services procurement agreements (ASPAs).

SNAP group’s Magat, Ambuklao and Binga hydroelectric power plants were granted provisional authority for three new ASPAs. The agreements entered into were for the provision of reactive power support ancillary services (RPS-AS) for the Luzon grid, all with a validity of five years.

In the orders dated May 7, 2019, for Ambuklao and Binga hydros, and May 10, 2019, for the Magat hydro, the ERC said the approval of the joint application would help “improve the availability of ancillary services in the Luzon grid and significantly lower the cost of these services to the benefit of the customers.”

Ancillary services are those capacity and energy needed to maintain stable and reliable operations of the interconnected transmission system. RPS-AS refers to the generating units’ capability to inject or absorb reactive power from the grid to maintain the voltage within the standard levels set by the Philippine Grid Code, and support the reliable transmission of electrical power from generating power plants to the consumers.

“We welcome the development. Part of SNAP’s mission is to provide energy solutions including the services necessary to maintain power quality, reliability and security of the grid,” SNAP Group President and CEO Joseph S. Yu said.

SNAP’s hydro plants also provide other types of ancillary services covered by three existing ASPAs provisionally approved in 2016 and 2017.

The NGCP is a privately owned company that operates and develops the country’s power grid. It transmits high-voltage electricity through so-called power superhighways that include the interconnected system of transmission lines, towers, substations and related assets.

SNAP Group is a joint venture between SN Power of Norway and AboitizPower. It supplies clean, renewable and dependable energy through the operation of the 105-megawatt Ambuklao hydro, and the 140-MW Binga hydro in the province of Benguet. SNAP also operates the 8.5-MW Maris hydro in Isabela, as well as the newly uprated 360-MW to 388-MW Magat hydro on the border of Isabela and Ifugao.