NGCP: No intention to delay implementation of ancillary service contracts

The National Grid Corporation of the Philippines (NGCP) on Wednesday came to its defense after the Department of Energy (DOE) blamed it for the series of yellow and red alerts in the Visayas power grid.

In a statement, the NGCP said it recognizes the DOE’s concerns regarding the recent power alerts in the Visayas and “remains committed to working with the DOE and other industry participants to strengthen grid reliability.”

On Monday, Energy Secretary Sharon Garin said that the power situation woes in the islands cluster could have been avoided had critical ancillary service contracts been completed on time.

“We saw the risk as early as May and directed NGCP to secure the necessary reserves. The batteries were there. The Visayas needed these reserves on the grid months ago. What was missing was timely execution. Delays in contracting left consumers with less protection when generating units unexpectedly went offline,” said Garin.

The NGCP defines ancillary services as a set of support functions that are essential for maintaining the reliability, stability, and overall operational efficiency of the grid.

“There is no intention to delay the execution of these contracts,” it said.

“Execution timelines are driven by availability and technical compliance by suppliers,” the grid operator added.

The company further said it 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,” it said.

The Visayas and Mindanao grids have been on yellow and red alerts for several days in September, the latest of which being last Monday, September 28, when peak demand came in at 2,374 megawatts against an available capacity of 2,572 MW.

The grid operator explained that the recent alerts occurred when available generation fell below the level required to meet demand and ancillary services requirements following simultaneous outages of generating units.

“Ancillary services perform a specific technical function in maintaining grid stability and responding to contingencies. They provide balance and technical support to the transmission system and should not be treated as replacement power for insufficient generating capacity,” it said.

“Nevertheless, NGCP continues to pursue additional ancillary service agreements in compliance with the DOE directives,” it added.

The grid operator said ancillary services procurement agreements (ASPA), however, require qualified and available facilities whose technical capability to provide the required service can be validated through the prescribed 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,” it said. —AOL, GMA News