Guidelines enforced on 3rd party accreditation for NGCP’s grid impact studies

To overcome backlog on system impact studies (SIS) for targeted massive renewable energy (RE) installations as well as for other power projects in the country, the Energy Regulatory Commission (ERC) has enforced processes on the accreditation of third party-entities that will aid system operator National Grid Corporation of the Philippines (NGCP) in fulfilling grid integration mandate on a fast-track mode.

In a statement to the media, the industry regulator announced the issuance of resolution that will primarily address the need to tap third party firms for the conduct of SIS – that way, NGCP as transmission network provider (TNP) can gain headway on the capacity absorption of many greenfield power installations.

According to the ERC, the edict warranted amendments to the Open Access Transmission Services (OATS) rules, which prescribes non-discriminatory access for all power generators when it comes to wheeling of their generated capacities to the grid.

“One of the significant provisions that the ERC amended is allowing third parties to conduct the SIS to address the backlog of requests,” the regulatory body emphasized.

The SIS will primarily assess if the transmission system can accommodate the load of a new power facility without adversely affecting the operation of the country’s overall power transmission network.

To note, delays in carrying out SIS by NGCP has been constantly raised as a major headache for power project developers – primarily the sponsor-firms of RE projects, including those that have committed delivery dates under the green energy auction (GEA) program of the government.

The ERC explained “the OATS rules mandated the TNP to maintain a sufficient number of accredited third-party SIS providers to ensure that the timelines for processes prescribed by the rules are met.”

In line with that regulatory enforcement, NGCP has been directed “to develop an accreditation system for third party SIS service providers within six (6) months from the effectivity of the OATS rules.”

It was similarly prescribed that “a list of accredited third party SIS service providers shall be developed and updated regularly by the TNP (NGCP) on the basis of the approved accreditation system.”

The ERC further decreed in the guidelines that “an annual review of the performance of all accredited service providers shall be conducted by the TNP,” adding that “adherence to prescribed timelines for completing accreditation evaluations is mandated.”

As reckoned, if the niggling delays on SIS won’t be resolved soon, the targeted RE projects could suffer curtailments and that will not only frustrate the country’s pathway to decarbonization, but it may also drive away investors.