MANILA, Philippines, March 28 ----- The National Grid Corp. of the Philippines (NGCP) is seeking the Department of Energy (DOE)’s intervention in preventing potential power outages following the denial by the Energy Regulatory Commission (ERC) of its request for interim ancillary services agreements.
The power transmission operator requested for the month-to-month extension of contracts for ancillary services (AS) while undertaking a competitive selection process (CSP) for such services. “Many of NGCP’s AS agreements have expired. We have resorted to month-to-month extensions of our existing agreements to ensure the sufficiency of services while the procurement process is ongoing,” NGCP said. “With ERC’s denial of this interim arrangement, our hands are tied. The Philippine Transmission Grid shall be vulnerable to power interruptions resulting from an artificial lack of AS. Without an existing ASPA, NGCP cannot nominate power plants to provide the critical services,” it said.
NGCP concluded the acceptance and opening of bids for AS on March 14, 15 and 16 for Luzon, the Visayas and Mindanao, respectively. The bids are currently being evaluated and NGCP expects to formally award contracts to winning bidders no later than April 18. NGCP said ancillary services procurement agreements (ASPA) resulting from the CSP shall still be subject to the approval of the ERC. However, with the regulatory processes that applications of this nature need to undergo, NGCP said a provisional approval for the new ASPAs cannot be expected earlier than June 2023.
According to NGCP, ancillary services support the transmission of power from generators to consumers to maintain reliable operations. Ancillary services are necessary for NGCP to manage power fluctuations to ensure the quality and reliability of power flowing through its system. NGCP said that if not managed properly, fluctuations can cause damage to sensitive equipment, or even lead to automatic load dropping.
In a letter, the NGCP has asked the DOE to intervene to avert power interruptions. “We respectfully inform you of the immediate need to extend existing ancillary services procurement agreements to prevent possible automatic load dropping (ALD) caused by a lack of AS,” NGCP president and CEO Anthony Almeda said in the letter to the DOE
Source: philstar.com