The National Grid Corp. of the Philippines (NGCP) is moving to sign additional power reserve contracts as it works to comply with Department of Energy (DoE) directives meant to stabilize power supply in the Visayas.

In a statement issued on Wednesday, the grid operator said it continues to pursue additional ancillary services procurement agreements (ASPAs) in compliance with the DoE's directives.

"These agreements, 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," NGCP said.

The DoE has flagged delays in the timely completion of critical ancillary service contracts, which it said could have eased the yellow and red alerts experienced in the Visayas.

ASPAs are agreements to provide reserve power on a standby basis should power supply margins thin. The energy department previously directed the NGCP to execute ASPAs covering at least 250 megawatts of power reserves for the Visayas.

Under the grid's alert protocols, a yellow alert is issued when the operating margin is insufficient to meet the transmission grid's contingency requirement. If conditions worsen and supply falls short of demand, a red alert is declared, triggering power rationing that could include rotational brownouts — the alert conditions the DoE tied to the incomplete ancillary service contracts.

The NGCP said it has no intention of delaying the execution of the contracts, noting that timelines are driven by the availability of suppliers and their technical compliance.

"ASPAs cannot be completed for facilities that are not yet operational or whose technical capability has not yet been established," the company said.

While power reserves provide balance and technical support to the transmission system, the NGCP stressed that they should "not be treated as replacement power for insufficient generating capacity."

"NGCP likewise continues to implement transmission projects and measures necessary to improve transfer capability across the Visayas," the company said.

"We remain ready to coordinate closely with the DoE toward practical and timely measures that will improve reliability for consumers," it added.

How quickly the 250-megawatt reserve target is met will hinge on the factors NGCP identified — the availability of qualified suppliers and the completion of the prescribed connection, commissioning, and testing steps — making the pace of upcoming ASPA signings the development to watch for grid reliability in the Visayas.

— Sheldeen Joy Talavera

Source: BusinessWorld