BUSINESS
NGCP: More Visayas reserves hinge on suppliers
The National Grid Corp. of the Philippines (NGCP) committed to secure additional power reserves following recent Visayas power alerts, but said the pace of contracting will depend on the availability and technical readiness of qualified suppliers.
In a statement Wednesday, NGCP said it continues to pursue additional ancillary service procurement agreements (ASPAs) in compliance with Department of Energy (DOE) directives to strengthen grid reliability.
The grid operator, however, said these contracts cannot be executed immediately unless prospective suppliers have operational facilities and can demonstrate their technical capability through required connection, commissioning, and testing processes.
“ASPAs cannot be completed for facilities that are not yet operational or whose technical capability has not yet been established. There is no intention to delay the execution of these contracts. Execution timelines are driven by availability and technical compliance by suppliers,” NGCP said.
NGCP issued the statement after recent power alerts in the Visayas raised concerns from the DOE over the reliability of the region’s electricity system.
According to NGCP, the alerts occurred after simultaneous outages of generating units pulled available generation below the level needed to meet electricity demand and ancillary services requirements.
NGCP stressed that ancillary services serve a specific role in maintaining grid stability and responding to unexpected system conditions.
It said these reserves provide balancing and technical support to the transmission system and should not be treated as replacement power when generating capacity is insufficient.
Apart from securing additional reserves, NGCP said it continues to implement transmission projects and other measures designed to increase power transfer capability across the Visayas.
“NGCP likewise continues to implement transmission projects and measures necessary to improve transfer capability across the Visayas. We remain ready to coordinate closely with the DOE toward practical and timely measures that will improve reliability for consumers,” NGCP said.