NGCP urges customers to join ILP

by Lenie LecturaOctober 8, 2016

from Business Mirror

TO help ease load requirements of the grid during high-demand times, the National Grid Corp. of the Philippines (NGCP) is encouraging its directly connected customers to participate in its Interruptible Load Program (ILP).

The ILP is a demand side management scheme set by the Energy Regulatory Commission (ERC) to help ease the impact of tight supply during yellow- and red-alert periods.

Energy Secretary Alfonso E. Cusi has directed NGCP to pursue its ILP to address the recent spate of power deficiencies.

The ILP rules of the ERC apply “to all distribution utilities [DUs] and their respective participating captive customer within their franchise area, to all DUs that entered into a tripartite ILP agreement with a retail electricity supplier [RES] and its participating contestable customers, and NGCP that entered into an ILP agreement with a participating directly connected customer.”

Under this program, NGCP’s DCC may voluntarily enter into an agreement, where they may be requested to run backup generators to partially decrease or completely cease drawing power from the grid in times of an electricity supply shortage. This will provide all grid-connected consumers with a more stable supply of electricity. Conversely, participating DCCs will be compensated for the internally generated power by NGCP through a formula provided by the ERC.

When consumers, such as large malls, industrial plants and economic zones use nongrid sources of electricity, NGCP is able to minimize or prevent manual power curtailment or load dropping when there is not enough power in the system, specifically when the system net operating reserve is less than 350 megawatts. Imminent power shortages will temporarily be addressed. “Theoretically, any consumer connected to the grid who also has a backup generation unit is a potential ILP supplier,” NGCP said in a statement.

The program was initially developed in 2010 by the ERC for implementation by DUs in the Visayas and Mindanao to address the imminent power shortage in those areas. In 2014 the ERC also allowed Manila Electric Co. to implement the same program within its franchise area. The program was further extended to other DUs, ecozones and NGCP’s DCCs in 2015.

The recent series of unplanned shutdowns this year of several power plants or generators, which were the direct cause of the power deficiency, gave reason to put the ILP in play. “We want to make sure that power supply remains stable and reliable, most especially when supply is critical. Right now, the best and quickest way to do this is to work hand in hand with our partners, and fully implement the ILP,” NGCP said.