Philippine Energy Policy Wiki

DC2019-12-0018: General Framework Governing the Provision and Utilization of Ancillary Services

Status
operative
Confidence
high
Effective date
2019-12-26

Signed: December 2019 | Effectivity: 15 days after publication

Purpose

Establishes the foundational policy framework for ancillary services (AS) in the Philippine grid, addressing gaps and inconsistencies in prior issuances arising from the 2016 Philippine Grid Code revision and preparations for the WESM Reserve Market.

Key Provisions

AS classification (§2.1): Five types — Regulating Reserve (RR), Contingency Reserve (CR), Dispatchable Reserve (DR), Reactive Power Support (RPS), Black Start (BS).

Required reserve levels per grid (§2.2):

  • RR: 4% of total demand
  • CR: capacity of largest synchronized unit/transmission element/import
  • DR: capacity of second-largest synchronized unit/transmission element/import
  • RPS: day-ahead load flow simulation by SO
  • Black Start: ≥2 units per restoration highway; 1 always available

Mandatory AS capability testing (§3): All units ≥10 MW (Luzon) or ≥5 MW (Visayas/Mindanao); initial inventory from NGCP within 30 days; testing deadline 26 March 2020.

Pre-Reserve Market (§4): All 5 AS types procured via firm contracts only.

Post-Reserve Market (§5): Contracted minimums — RR: 50% of RR requirement; CR: 50% of dependable capacity of largest unit; DR: 50% of dependable capacity of second-largest unit. RPS and Black Start remain firm-contract only.

Reserve Market launch criteria (§6): 6 conditions including ERC Price Determination Methodology approval, AS capability testing completion, systems readiness, price cap/floor establishment, settlement procedures, and trial operations. PEMC certifies readiness (§7).

AS-TWG (§9): DOE+ERC co-chairs; NGCP, PEMC, IEMOP, PEPOA, MERALCO, PIPPA (3 reps) as members; EPIMB secretariat. Convenes within 30 days; recommendations within 180 days. ERC issues rules within 60 days of recommendations.

Pages Updated

  • Ancillary Services (AS) — added required reserve levels (§2.2), mandatory testing thresholds (§3), AS-TWG composition (§9); enriched regulatory framework table entry; added sources/entities to frontmatter

Full text: Cleaned copy