The ancillary services requirement of system operator National Grid Corporation of the Philippines (NGCP) at ensuring stability and reliability of Luzon’s power grid is being addressed partly with capacity earmarking from the electricity generation of the 360-megawatt Magat hydropower plant of SN Aboitiz Power Magat Inc.

Ancillary services would account for power supply necessary to support the transmission of capacity and energy from resources to loads, and also anchored on the inherent need to maintain reliable operations of the transmission system.

It was noted that available ancillary services for the Luzon grid have been “insufficient to meet the required levels,” but it is seen that said capacity commitment from the Magat plant will ease pressure from such gridlock.

The Ancillary Services Procurement Agreement (ASPA) inked by SNAP-Magat with NGCP’s predecessor-company National Transmission Corporation (TransCo), engages the former to provide for the ancillary needs of the transmission system. The ancillary services covered under the ASPA include regulating reserve, contingency reserve, dispatchable reserve, black start capacity and reactive power support – which are all necessary to prop up the grid’s efficient and reliable operations.

Even during the critical period of El Niño-struck summer months wherein water elevations are expected lower, SNAP chief executive officer Emmanuel Rubio assured that they can keep up with their capacity commitments to NGCP for ancillary services.

“We need less water to produce power for the ancillary needs of NGCP as compared to running our plant for power that we trade in the market, so we’re relatively ready for contingencies,” he said.
He emphasized that the company adheres to impounding strategy that will warrant them to draw water from the dams when needed for specific uses, either for power generation or irrigation purposes.

When TransCo-NGCP scoured for prospective ancillary service providers, it looked at the offer made by SNAP-Magat, apart from other providers Angeles Electric Corporation and state-run National Power Corporation.

It was emphasized that based on TransCo’s tests and assessments of SNAP-Magat’s facility, the company successfully passed all criteria that warrants it to provide ancillary services to NGCP, thus, the issuance of its accreditation certification for that purpose.

An approval of the tariff schedule for the NGCP-SNAP Magat ancillary services contract provides for the applicable and reasonable rates to be charged by the power provider for specific services rendered.

Corresponding adjustments have also been provided for under the Ancillary Services-Cost Recovery Mechanism (AS-CRM) relative to the rules laid down by the industry regulator.