Three affiliates to supply the National Grid Corporation with standby power.
Aboitiz Power Corporation said the standby power supply will be tapped by NGCP in case regular supply falls short, helping ensure the integrity of the main power grid.
The procurement of these ancillary services by NGCP is critical as this will be needed to maintain the reliable operation of the interconnected transmission system.
NGCP, operator of the national electricity grid, said it wants to lower the cost of ancillary services by as much as 40% to ease the burden of high electricity prices on consumers. It noted that the rates under the new agreements filed with the government were significantly lower and cheaper than current agreements.
APC said its subsidiaries, SN Aboitiz Power-Magat Inc. and SN Aboitiz Power-Benguet Inc. have signed Ancillary Services Procurement Agreements with NGCP. Another affiliate, Therma Luzon, Inc., also signed a similar agreement covering both firm and non-firm contracted capacities for contingency reserve at 60 MW during off-peak and 60 MW during peak hours.
SNAP-Magat owns and operates the 360 MW Magat hydroelectric power plant in the province of Isabela. SNAP -Benguet owns and operates the 225 MW Ambuklao and Binga hydroelectric power plants located in the province of Benguet.
APC said the ASPAs cover firm contracted capacities for both regulating and contingency reserves at 155 MW for Magat and 95 MW for Ambuklao. The ASPAs are valid for three years from the issuance of a provisional or final approval by the Energy Regulatory Commission.
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