MANILA BULLETIN: First Gen offers Pantabangan plant for NGCP’s ancillary service needs
January 27, 2010

With power system reliability becoming a concern in the grid, First Gen Hydro is offering the capacity of its 100-Pantabangan hydropower facility for the ancillary service needs of system operator National Grid Corporation of the Philippines.

First Gen senior vice president Ernesto B. Pantangco disclosed that the company “is in the process of negotiating with NGCP for ASPA (Ancillary Services Procurement Agreement)”. The original installed capacity of the Pantabangan facility is 100-MW but with the refurbishment undertaken by First Gen, the total capacity will be shored up to 118-MW by the end of this year.

Pantangco acknowledged that one of the major ancillary needs of the grid operator is for frequency regulation, “so we’re trying to help on that.”

The Grid Management Committee (GMC) previously sounded off concerns on the diminishing quality of power wheeled into the grid, because the ancillary needs of NGCP are not being fully provided for.

Although still at a snail’s pace, such predicament is reportedly being addressed with many of the hydro plant buyers already committing their capacity for NGCP’s ancillary needs to ensure efficient and reliable operations of the power system.

For long-term policy direction, industry players have been batting for the establishment of an ancillary trading component in the Wholesale Electricity Spot Market (WESM), in order for that need in the system to be fully addressed.

It is envisioned that the trading market for ancillary services would be able to guarantee supply to support the transmission of capacity and energy from the generation plants to distribution loads, thus, ensuring reliable and supply security to end-users.

The ancillary supply needs of the transmission operator may be traded via the WESM or procured directly from power providers, it was proposed.

The contracting arrangement, it was further pointed it, shall be anchored on the policy and procurement options laid down by the Energy Regulatory Commission (ERC) that must be adhered to by the transmission operator.

The rules prescribe that ancillary services arrangement entered into with providers shall be in keeping with the manner of supply procurement set forth under the Open Access Transmission Service (OATS) Rules.

In cases where supply for ancillary services would be secured through the WESM, the ERC emphasized that this must also comply with the Market Rules.

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