System operator National Grid Corporation of the Philippines (NGCP) has issued notice of award to 38 bidder-companies that won contracts for the provision of ancillary services across all grids, primarily power reserves, that shall be critically required in the reliable operation of the country’s power system.

“Out of the 55 eligible bidders who participated and submitted bids (total nationwide), 38 bidders will be awarded the contract for procurement of ancillary services as confirmed by the NGCP board of directors,” the transmission firm has stipulated.

The ancillary services it will procure include: regulating reserve for Luzon and Mindanao grids; contingency and dispatchable reserves; as well as reactive power support and blackstart service for all three major power grids.

For regulating reserve, the companies that won contracts have been: GigaAce4; UPSI-Lamao BESS (battery energy storage system); UPSI-Limay BESS and UPSI-San Manuel BESS for Luzon; then UPSI-Maco BESS and UPSI-Malita BESS for Mindanao grid.

On contingency reserve, the providers to be awarded with contracts would be Giga Ace4, Ingrid Power Holdings Inc., Masinloc Power Partners Co. Ltd., SNAP-Benguet Inc.-Ambuklao Hydro Electric Power Plant, SNAP-Benguet Inc. – Binga Hydro Electric Power Plant; SNAP-Magat Inc., Therma Luzon Inc., UPSI-Concepcion BESS, UPSI-Lamao BESS, UPSI-San Manuel BESS for Luzon; then Therma Visayas Inc., UPSI-Ormoc BESS, UPSI-Toledo BESS and UPSI-Ubay BESS for Visayas; and GNPower Kauswagan Ltd. Co., Therma Marine Inc.-Mobile 1 and UPSI-Jasaan BESS for Mindanao grid.

For the provision of dispatchable reserve, the winning bidders are: 1590 Energy Corporation, Bulacan Power Generation Corp., CIP II Power Corporation, One Subic Power Generation Corp., Prime Meridien Power Corp, SNAP-Benguet Inc.-Ambuklao Hydro Electric Power Plant; SNAP-Benguet Inc.-Binga Hydro Electric Power Plant; SNAP Magat Inc and Therma Mobile Inc. for Luzon grid; then Cebu Private Power Corporation and SPC Island Power Corp.-Panay diesel power plant for Visayas; then King Energy Generation Inc. – Jimenez, King Energy Generation Inc.-Panaon, Mapalad Power Corporation, Therma Marine Inc-Mobile 2 and Western Mindanao Power Corporation for Mindanao.

The contracts for Luzon grid procurement of reactive power support will be awarded to First Gen Power Corporation and Therma Mobile Inc.; while for Visayas, those that cornered contracts have been Cebu Private Power Corporation, East Asia Utilities Corporation, Therma Power Visayas Inc. and Therma Visayas Inc.; then King Energy Generation Inc- Jimenez, King Energy Generation Inc.-Panaon, Therma Marine Inc. -Mobile 2, Therma Marine Inc-Mobile 1 and Western Mindanao Power Corp for Mindanao.

Award of blackstart service contracts will be with BacMan Geothermal Inc. and First Gen Power Corporation for Luzon; then Cebu Private Power Corp., East Asia Utilities Corp., MORE Power Barge Inc., SPC Island Power Corp. and Therma Power Visayas Inc. for Visayas; and Therma Marine Inc-Mobile 1 and 2 as well as Mindanao Power Corp for Mindanao grid.

As emphasized in the Ancillary Services Procurement Plan (ASPP) of the system operator, a contingency reserve is the power plant that will be ready to plug any capacity loss in the system – and often, this is equivalent to the biggest unit in a power grid; which is now the Dinginin power plant for Luzon grid.

A dispatchable reserve, on the other hand, is a plant that is not scheduled for regular energy supply or for any other type of AS requirements, and can immediately be dispatched to replenish the contingency reserve.

Reactive power support service accounts for the type of ancillary service to ensure the technical reliability of a power system; while blackstart is needed to let the grid quickly recover from a partial or total blackout.

For regulating reserve, which is also known in power system operations as regulation reserve, this AS pie refers for power plants that are typically kept offline, but they must be ready to be turned on at a moment’s notice in case there will be sudden increase in demand for electricity; and this capacity serves as safety net to ensure that there will always be enough electricity available to keep the grid stable.

As of press time, the cost impact of the procured ancillary services in the electric bills of consumers has not been fleshed out yet.