DoE soliciting comment on grid-services procurement rules

By Victor V. Saulon – April 1, 2019 | 12:16 am
from Business World

power lines

THE Department of Energy (DoE) is asking industry stakeholders to comment on a draft circular that will regulate the provision of ancillary services in the country’s power grid.

The DoE said there is a need to issue a circular that will “harmonize ancillary service-related issuances and address various issues through a general framework.”

Ancillary services are necessary to support the transmission of power capacity and energy from resources to loads, while maintaining reliable operation of the transmission system in line with good utility practice and the Philippine Grid Code.

The draft has set forth the process of procuring ancillary services, which is the task of system operator National Grid Corporation of the Philippines (NGCP).

All reserve energy categories — primary, secondary and tertiary reserves — are to be procured through contracts provided that a competitive selection process is undertaken for this purpose.

Reactive power support and black start ancillary services are to be procured only through contracts. Black start is the process of restoring a power system to recover from shutdown.

Once the reserve market starts operating, the procurement of ancillary services is to be done through contracts or through the market. Reactive power support and black start ancillary services are still to be procured only through contracts. All reserve categories are subject to the central scheduling and dispatch of the market operator.

The DoE said the circular will ensure the reliability, quality and security of the supply of electricity by adhering to principles that will provide the safe and reliable operation of the grid by taking into account the entry of emerging technologies and the intermittency of variable renewable energy generating resources.

It said the circular will also provide proper accountability among concerned entities in the efficient and transparent operation of the grid. It will also ensure compliance to reserve requirements of each grid.

The circular also lays down the responsibilities of power generation companies, including testing for ancillary service capability when they apply for a certificate of compliance and during the annual validity process.

The DoE is accepting proposals and comments until May 3.