THE Energy Regulatory Commission (ERC) said it is considering removing the limits on the capacity that new power generating units can feed into the grid.
“In light of the developments in the energy and reserves market, the ERC finds that additional capacities can be accommodated and should be made available to address the needs of the grid and its users,” the ERC said in a draft resolution.
The regulator is proposing to remove the prescribed capacity limit for prospective power generating plants, which had been originally set in ERC Resolution No. 8 Series of 2016, as amended by ERC Resolution No. 18, Series of 2017.
Originally, the capacity that a generating unit can inject to the grid was capped at 650 megawatts (MW) for Luzon and 150 MW for the Visayas and Mindanao.
The Grid Management Committee had recommended the capacity limit to protect the grid against “a single contingency event that may be brought about by the failure of the largest generating unit online, as well the cost to consumers of an outage or a higher reserve requirement.”
Under the proposed resolution, the ERC requires all prospective grid-connected power generating plants to secure a system impact study from the National Grid Corp. of the Philippines (NGCP), or any of its accredited third-party providers, to determine the capacity of the transmission system to absorb the generating plant’s intended large capacity.
The NGCP, as the transmission network provider, should also consider provisions in the Transmission Development Plan to accommodate future large generating plants, “in light of new technological advancements in other jurisdictions and markets.”
“The ERC is committed to promulgate rules that will entice capacity addition in the generation sector through efficient resources and risk allocation by the investors based on the prevailing market and technology conditions,” the regulator said. — Sheldeen Joy Talavera
