ERC approves 19 NGCP power reserve deals

THE Energy Regulatory Commission (ERC) said it approved 19 ancillary service procurement agreements (ASPAs) entered into by the National Grid Corp. of the Philippines (NGCP) with prospective suppliers.

In a notice, the ERC said the commission authorized the ASPA applications involving suppliers like Aboitiz group companies Therma Visayas, Inc., Therma Mobile, Inc., GNPower Kauswagan Ltd., Co.; and units of Universal Power Solutions, Inc., controlled by San Miguel Global Power Holdings Corp. (SMGP).

The ERC also approved NGCP’s ASPA with Western Mindanao Power Corp., controlled by Alsons Consolidated Resources, Inc.

Meanwhile, the ERC deferred decisions on 17 ASPAs, including power reserve deals with units of AboitizPower, SMGP, ACEN Corp., and First Gen Corp.

These ASPAs were a result of competitive bidding conducted by NGCP in 2023 for the procurement of ancillary services, subject to the approval of the ERC.

Under the Electric Power Industry Reform Act of 2001, ancillary services are defined as “services that are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system.”

Through the reserve market, the grid operator buys power reserves to meet the reserve requirements of the system.

According to a draft circular, the Department of Energy is looking to allow the system operator to directly negotiate ancillary services procurement without competitive bidding, subject to certain conditions.

“To expedite the procurement of the necessary ancillary services in the grid and to ensure the reliability of the Philippine grid and its sub-grids, it is imperative to enact a supplementary framework to further mobilize the SO (system operator) in the attainment of a sustainable, reliable, and efficient level of ancillary services at a cost that is reasonable and fair to all electric power industry participants and to the electricity consumers,” it said. — Sheldeen Joy Talavera