Aboitiz unit forges ancillary services accord with NGCP

MANILA, Philippines - The Energy Regulatory Commission (ERC), the country’s power sector regulator, has allowed SN Aboitiz Power-Benguet to enter into an ancillary services procurement agreement with the National Grid Corporation of the Philippines (NGCP). 

The ERC said it “finds that the provisional implementation of the ancillary services procurement agreement will redound to the benefit of all consumers of NGCP in Luzon in terms of continuous, reliable and efficient power supply.” 

SNAP-Benguet chief executive officer Emmanuel Rubio lauded the ERC’s decision, saying this will benefit their customers.

“We welcome the development and are very keen to provide the services necessary to maintain power quality, reliability and security of the grid,” he said.

Ancillary services are those capacity and energy needed to maintain a stable and reliable operation of the interconnected transmission system. These services include the fast start capability of a generating unit to provide additional energy to system demand changes, the capability to provide reserve capacity necessary to immediately respond to generating units or transmission line failures, and the ability to inject or absorb reactive power from the grid to maintain standard voltage levels. 

As part of the qualification process, SNAP-Benguet, which owns and operates the 100 megawatt Binga hydropower plant in Itogon, was tested and determined by the NGCP as capable of providing these services. 

The ERC noted that a significant portion of ancillary services were provided by the National Power Corp. (Napocor), whose power plants have since been privatized under the Electric Power Industry Reform Act. 

Generators other than Napocor capable of providing ancillary services are necessary to augment the power supply deficiency and meet the required level.