DoE’s Cusi urges NGCP to meet reserve contract requirement instead of seeking Palace intervention - BusinessWorld Online

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DoE’s Cusi urges NGCP to meet reserve contract requirement instead of seeking Palace intervention - BusinessWorld Online
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Energy Sec. Alfonso G. Cusi called on the NGCP to meet the standards for power reserve contracts, which serve as a buffer in the event power plants fail unexpectedly, instead of asking the Palace to resolve its standoff on reserve levels with the DoE.

“I don’t think all the National Grid Corp. of the Philippines has to do is comply with its obligation to provideThe NGCP wrote to the Ofce of the President seeking its intervention, citing the need to ensure continuous power during the election period in May.fi

rm contracts. The NGCP’s position is that full compliance with the firm-contract requirement will ultimately raise power prices because of the expense involved in committing reserves. It said it instead proposes to tap a network of AS providers under firm and non-firm contracts.In a news conference on Jan. 25, Electric Power Industry Management Bureau Director Mario C.

“Non-working holidays can help as ensure there will be more power supply in the grid on the day and a day after the elections especially with the closure of commercial and government offices,” NGCP Assistant Vice-President and spokeswoman Cynthia D. Perez-Alabanza toldThe Jan. 31 letter, which the OP received on Feb. 3, noted that 2021 actual demand exceeded 2019 pre-pandemic demand by 296 megawatts with the 2022 projected demand peak expected to exceed 2019 levels by 1,043 MW or 9%.

The NGCP’s own data indicate a firm contract level equivalent to 809.3 MW. It estimates that it requires 1,776.7 MW more to meet the full coverage level on firm contracts. Non-firm contracts are equivalent to 2,807.2 MW.

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