ANCILLARY SERVICES PROCUREMENT PLAN

Rules, Terms and Conditions for the Maintenance of Reliability,

Adequacy and Security of the Grid

Energy Regulatory Commission

ERC Case No. _______

Draft December 2016

 TABLE OF CONTENTS
1 Introduction ........................................................................................................ 2
1.1 Objectives ........................................................................................................... 2
1.2 Glossary .............................................................................................................. 2
1.3 Scope and Applicability .................................................................................... 5
1.4 Ancillary Services Categories .......................................................................... 5
1.4.1 Frequency Control Ancillary Service (FCAS) ............................................... 5
1.4.2 Reactive Power Support Ancillary Service (RPSAS) ................................... 6
1.4.3 Black Start Ancillary Service (BSAS) ........................................................... 6
2 Specification of Ancillary Services .................................................................. 6
3 Technical Requirements ................................................................................... 7
4 Required Levels of Ancillary Services .......................................................... 11
5 Procurement of Required Ancillary Services ............................................... 13
5.1 Methods of Procurement of Ancillary Services............................................ 13
5.2 Methods of Scheduling and Dispatch of Ancillary Services ...................... 14
5.3 Qualification and Testing of Service Providers............................................ 18
5.4 Monitoring of Ancillary Service Provision .................................................... 20
5.5 Payment to Service Providers ....................................................................... 21
6 Ancillary Service Compliance Monitoring..................................................... 21
7 Transitory Provisions ...................................................................................... 21
8 References ........................................................................................................ 22

Attachment 1- Certification of Ancillary Service Providers ....................................... 24

Attachment 2 - Ancillary Service Testing, Certification and Accreditation ............. 29
Attachment 3 – Ancillary Services Standard Technical Requirements ................... 37
Attachment 4 – Generator Reactive Capability Limitation ........................................ 39
Attachment 5 – Sample Computations ........................................................................ 40
Attachment 6 – Tertiary Reserve Interruptible Load Certification Test ................... 43

Page 1 of 44
1 Introduction

1.1 Objectives

The Ancillary Services Procurement Plan (ASPP) has been developed to inform the
electric power industry participants how NGCP, through its System Operator,
will undertake its responsibilities to provide Ancillary Services to the Philippine
Grid, in coordination with the Market Operator, as required by the Electric Power
Industry Reform Act of 2001 (EPIRA), the Implementing Rules and Regulations
of Republic act No. 9136 (the IRR), the Philippine Grid Code, OATS Rules and the WESM
Rules.

1.2 Glossary

Active Power - The time average of the instantaneous power over one period of
the electrical wave measured in Watts (W) or multiple thereof. For AC circuits or
Systems, it is the product of the root-mean-square (RMS) or effective value of the
voltage and the RMS value of the in-phase component of the current. In a three
phase System, it is the sum of the Active Power of the individual phases.

Automatic Generation Control (AGC) - The regulation of the power output of Generating
Units in response to a change in system Frequency, so as to maintain the Power System
Frequency within the predetermined limits.

Available Capacity - the dependable capacity, modified for equipment limitation at any
time.

Maximum Available Capacity - Generating capacity equal to the registered maximum

capacity (Pmax) of the (aggregate) unit less forced unit outages, scheduled unit outages, de-
rated capacity due to technical constraints which include plant equipment-related failure
and ambient temperature, hydro constraints which pertains to limitation on the water
elevation/turbine discharge and MW output of the plant and geothermal constraints which
pertain to capacity limitation due to steam quality (including, but not limited to, chemical
composition, condensable and non-condensable gases), steam pressure and temperature
variation, well blockage and limitation on steam and brine condensable gases), steam
pressure and temperature variation, well blockage and limitation on steam and brine
collection and disposal system

Energy Storage System – is a set of technologies where energy is stored during times
when production exceeds consumption and the stored energy are used at times when
consumption exceeds production.

Concessionaire - The concessionaire is currently the National Grid Corporation

of the Philippines (NGCP), or as otherwise approved under Philippines law from
time to time.

Page 2 of 44
Dependable Capacity - the maximum capacity, modified for ambient limitation for a
specified period of time, such as a month or a season.

Dispatch Instructions – Refers to the instruction issued by the System Operator to the
Generators with Scheduled Generating Units and to the Generators whose Generating
Units will provide Ancillary Services to implement the final Dispatch Schedule in real time.

Dispatch Schedule (Market base) - The target loading levels in MW for each schedule
Generating Unit or scheduled Loads and for each Reserve facility for the end of that trading
interval determined by the Market Operator through the use of a market dispatch
optimization model.

Dispatch Schedule (Non-Market base). The target loading levels in MW for each
scheduled Generating Unit or scheduled Loads and for each Reserve facility as determined
by the System Operator.

Energy Management System (EMS) - An electronic monitoring and control

system available to the System Operator to monitor and control the Grid.

Excess capacity - For a generator, excess capacity is the available output capacity
in MW while it is supplying the scheduled energy, Primary, Secondary and Tertiary reserve
dispatched by the System Operator or under contract (i.e.: available capacity less
scheduled energy, Primary, Secondary and Tertiary reserve). Excess capacity = available
capacity - (scheduled energy + scheduled AS reserves).

Frequency – as defined in the Philippine Grid Code with a nominal value of 60Hz

Frequency Response Obligation - The minimum amount of Frequency Response that

must be maintained by the System Operator in the Grid. It is a target contingency
protection criterion which includes the reliability margin to prevent frequency nadir from
encroaching the system’s highest Under Frequency Load Shedding (UFLS).

Grid - The high voltage backbone system of interconnected transmission lines,

substations and related facilities, located in each of Luzon, Visayas and Mindanao, or as
may be determined by the ERC in accordance with Section 45 of the Act.

Governor Control Mode (GCM) - A generating unit operating under the control of a
governor which has been calibrated to control the output of the generating unit to
set levels of frequency, voltage or other parameter, without the need for external
control signals.

(MVAR) - Mega Volt-Ampere Reactive

Page 3 of 44
National Grid Corporation of the Philippines (NGCP) - The entity which in
2009 has been awarded the concession to operate, maintain and expand the
Philippine electricity Grid, in accordance with NGCP Franchise (RA9511), or asotherwise
approved under Philippines law from time to time.

Open Access Transmission Service Rules (OATS Rules) – The set of rules that govern
the implementation of the Open Access Transmission Services as approved by the ERC.

Philippine Grid Code (PGC or Grid Code) – The set of rules, requirements, procedures,
and standards to ensure the safe, reliable, secured and efficient
operation, maintenance and development of the high-voltage backbone Transmission
System and its related facilities.

Qualified Interruptible Loads - A load that is tested, certified and monitored by the System
Operator to provide Tertiary Reserve Ancillary Service.

Qualified Generating Unit – A Generating Unit tested, certified and monitored by the
System Operator to provide specific types of Ancillary Service.

Qualified Generators - A generator which has one or more, Qualified

Generating Unit(s) which have been tested and certified as qualifying under the
provisions of this ASPP document (refer section 5.3), where only the Qualified
Generating Units are eligible to be scheduled as and receive payments for
providing AS.

Reaction Time - The elapsed time from the occurrence of a disturbance until the time the
ancillary service provider begins to respond.

Reactive Power Capability Curve - A diagram which shows the Reactive Power capability
limit versus the Real Power within which a Generating Unit is expected to operate under
normal conditions. Refer to Attachment 4 for an example.

Regular Energy Supply - Is defined as the output of energy by a generator at a

given MW level and over a given time interval under dispatch orders of the
System Operator.

Reserve Market – as defined in WESM Rules.

Saturation Time – The elapsed time from the occurrence of a disturbance until the time
the ancillary service provider reaches the required reserve capacity.

Service Providers – Pertains to grid-connected Qualified Generators and Qualified

Interruptible Loads.

Sustainability - The elapsed time from the saturation point until the time for which the
ancillary service provider must maintain the appropriate reserve capacity.

Page 4 of 44
 TransCo - The National Transmission Corporation of the Philippines, which is
currently the owner of the electricity transmission assets of the Philippine Grid.

Under Frequency Relays (UFR) - An electrical relay that operates when the Power
System Frequency decreases to a preset value.

Under-Frequency Load Shedding (UFLS) - The process of automatically and deliberately

removing pre-selected Loads from a power System in response to under-frequency
condition in order to maintain the integrity of the Power System.

Wholesale Electricity Spot Market (WESM) – The electricity market established by the
DOE pursuant to Section 30 of the Act.

Where terms are not defined in this ASPP reference should be made to the EPIRA,
IRR, Grid Code or WESM Rules.

1.3 Scope and Applicability

This document covers the definition of the types of Ancillary Services (AS) necessary for
the reliable operations of the Grid, the manner of procurement by the System Operator, the
level of Ancillary Services requirement, the process of certifying Qualified Generating Units
and Qualified Interruptible Loads which the System Operator can contract and/or schedule
for provision of Ancillary Services, and the process for control, monitoring Ancillary
Services provider’s performance and the obligation for payments.

The cost recovery mechanism for the provision of scheduled Ancillary Services is defined
in separate documents, which are subject to due process and approval by the ERC.

Implementation of this procurement plan shall be in accordance with the guidelines to be

develop by NGCP.

1.4 Ancillary Services Categories

All Ancillary Services can be grouped under one of the following three (3) major
categories:

1.4.1 Frequency Control Ancillary Service (FCAS)

FCAS are used (by the System Operator) to maintain the frequency on the
electrical system, at any point in time, close to sixty (60) cycles per second.
There are three (3) types of reserve under Frequency Control as specified
by the PGC.
•
• Primary Reserve Ancillary Service (PRAS)
• Secondary Reserve Ancillary Service (SRAS)
• Tertiary Reserve Ancillary Service (TRAS)

Page 5 of 44
 These types of FCAS will be defined in Section 2 of this plan.

1.4.2 Reactive Power Support Ancillary Service (RPSAS)

RPSAS are reactive power provided by generating units capable of

operating at less than 0.85 lagging power factor or less than 0.90 leading
power factor to maintain the system voltage at the standard level set in the
PGC.

1.4.3 Black Start Ancillary Service (BSAS)

BSAS are used to recover the Power System from total or partial system
blackout by starting and synchronizing with the Power System without an
external power supply.

2 Specification of Ancillary Services

The following AS will be provided by Qualified Generators, Energy Storage System and
Qualified Interruptible Loads in the Philippine Grid. These AS are essential in maintaining
power quality, reliability, and security of the Philippine Grid.

2.1 PRAS – are FCAS capacities from qualified Generating Units and Energy Storage
System that are allocated to stabilize the system Frequency and to cover the loss or
failure of a Synchronized Generating Unit or a transmission line or the power import
from a single circuit interconnection.

2.2 SRAS - are FCAS capacities from qualified Generating Units and Energy Storage
System that are allocated to restore the system frequency from the quasi-steady
state value as established by the Primary Reserve back to the nominal frequency of
60 Hz. This type of service should also be used to provide supply demand balance
during small frequency deviations.

2.3 TRAS - are FCAS capacities from qualified Generating Units, Energy Storage
System and Interruptible Loads that are readily available for dispatch in order to
replenish the Secondary Reserve and to cover variation of VRE generations. This
type of service should also be used in maintaining the Frequency at a pre-
established value and/or returning the Frequency to 60Hz in case the Primary and
Secondary Reserve are not adequate or already exhausted.

2.4 RPSAS - is the capability of a generating or a synchronous condenser unit to supply

reactive power to, or absorb reactive power from, the Transmission Network in order
to maintain the bus voltage within five percent (5%) of its nominal voltage. The
purpose is to supplement Reactive Power resources of the static and dynamic type,
depending on the location and network loading conditions, and to contribute to
network voltage control when dispatched.

Page 6 of 44
 2.5 BSAS - The need for this AS arises when an event or significant incident will result
in a Partial or Total System Blackout. This is the ability of a generating unit, without
assistance from the Grid or other external power supply, to recover from a shutdown
condition to an operating condition in order to energize the Grid and assists other
generating units to start.

3 Technical Requirements

This section of the plan sets out the arrangements which the System Operator will
follow for contracting or procurement of each category of Ancillary Services from Service
Providers. On the other hand, the Service Provider shall use reasonable efforts, in
accordance with good industry practice, to ensure that the plant and equipment meet the
technical specification as per Philippine Grid Code requirement.

NGCP, as the System Operator, has certified numerous Service Providers. These Service
Providers meet the performance criteria as evaluated based on the result of the capability
tests.

Included in this plan are the tabulated summaries of Performance Measures & Criteria with
its monitoring scheme and the Accredited Service Providers for each category of ancillary
services, once testing and certification has been performed by NGCP.

3.1 Primary Reserve Ancillary Service

Operating characteristics and technical capabilities of Generating Units and Energy

Storage System providing Primary Reserve as AS:

3.1.1 The Generating Units or Energy Storage System providing Primary Reserve as
an Ancillary Service shall be capable of operating in Governor Control mode
with sufficient headroom.
3.1.2 The Generating Units or Energy Storage System providing Primary Reserve as
an Ancillary Service shall be certified and contracted by the System Operator.
3.1.3 The Generating Units or Energy Storage System providing Primary Reserve as
Ancillary Service shall not override its governor control. The Primary Reserve
provider should be able to respond within 5 seconds and deliver its reserve
capacity based on its Ramp-up Rate within 10 minutes which should be
sustainable for at least 30 minutes or as required by the system.
3.1.4 Primary Reserve Service provider shall cover sudden outage or failure of
synchronized generating unit or transmission line links or the power import from
a single circuit interconnection, whichever is larger.

As an illustration, the Figure 3.1 below shows the relationship between Primary Reserve
and Regular Energy Supply:

Page 7 of 44
 Figure 3.1: Primary Reserve

Primary
Reserve
Ancillary
Service

Regular
Energy
Supply

3.2 Secondary Reserve Ancillary Service

Operating characteristics and technical capabilities of Generating Units and Energy

Storage System providing Secondary Reserve:

3.2.1 Generators and Energy Storage System providing this service shall be
controlled by SO thru AGC with Auto R, Auto A, or Auto E settings in order
to regulate the system frequency. The speed governing system shall be
capable of accepting raise and lower signals or set point signals from the
Control Center of the System Operator. The Secondary Reserve provider
should be able to deliver 90% of the desired generation within 32 seconds
and should be sustainable for at least 30 minutes.
3.2.2 Generating Unit contracted to provide Secondary Reserve shall not override
the AGC mode or AGC setting as set and controlled by SO.
3.2.3 The System Operator thru AGC shall use the Secondary Reserve to restore
the system Frequency from the quasi-steady state value as established by
the Primary Reserve back to the nominal Frequency of 60 Hz.
3.2.4 Where the AGC function of the SO is not fully operational, dispatcher may
instruct the generator to transfer to Manual Control Mode.
3.2.5 The Secondary Reserve, operated thru AGC or manual control, shall be
provided by Generating Units of Energy Storage System, both contracted
and certified by the System Operator.

The capacity of the Generating Unit or Energy Storage System offered for this
service should not be used in the regular energy supply. Figure 3.2 below illustrates
the Secondary Reserve Ancillary Service:

Page 8 of 44
 Figure 3.2: Secondary Reserve

Secondary
Reserve

Pmin.

3.3 Tertiary Reserve Ancillary Service

Operating characteristics and technical capabilities of Generating Units, Energy

Storage System and Interruptible Loads providing Tertiary Reserve:

3.3.1 Generating Unit and Energy Storage System providing this service can
either be synchronized, which can respond within 15 minutes, or off-line
provided that it can fully provide the required reserve within 30 minutes
from the receipt of dispatch instruction. The Tertiary Reserve provider
should be able sustain its contributed capacity for at least 60 minutes.
3.3.2 The total Tertiary Reserve may comprise of 50% synchronized with the
Grid and 50% off-line.
3.3.3 The System Operator shall make use of the Tertiary Reserve in cases of:
(a) Unplanned tripping of a Generating Unit or a transmission line
which creates a Generation-Load unbalance;
(b) Unplanned loss of the power import from a single circuit
interconnection;
(c) Unplanned Disconnection of a large Load and/or Load blocks;
(d) Unexpected reduction of VRE Generation or significant errors in its
forecast; or
(e) System Frequency increases above 60.1 Hz or reduces below 59.9
Hz and it is not possible to return it to nominal values with
appropriate use of the Primary and Secondary Reserve.
3.3.4 The System Operator shall use the Tertiary Reserve Service to replenish
the Secondary Reserve.
3.3.5 The Tertiary Reserve shall be provided by Generating Units or Energy
Storage System and Qualified Interruptible Loads contracted by the
Transmission Network Provider and are certified by the System
Operator.
3.3.6 Generators or Energy Storage System providing this service should be
capable of operating thru AGC or Manual mode and shall be monitored
and controlled by the System operator.
3.3.7 The capacity of the Generating Unit or Energy Storage System offered

Page 9 of 44
 for this AS should not be part of the regular energy supply. As an
illustration, the Figure 3.3 below shows the relationship between
Tertiary Reserve and Regular Energy Supply of a Generating unit
already supplying energy.

Figure 3.3: Tertiary Reserve

Tertiary
Reserve

Regular
Energy
Supply

3.3.8 Operating characteristics and technical capabilities of Interruptible

Loads providing Tertiary Reserve:

3.3.8.1 Interruptible Loads providing Tertiary Reserve shall be able

to drop its committed loads 15 minutes after the receipt of
Dispatch order from the System Operator.
3.3.8.2 Interruptible load shall be directly connected to the Grid in
order to qualify as Tertiary Reserve.
3.3.8.3 Interruptible Loads providing Tertiary Reserve should have
the capability to provide real time data (MW readings and
Status of Load) to the NGCP SCADA/EMS.
3.3.8.4 Interruptible Load providing Tertiary Reserve should be
able to provide a committed uniform load throughout the
Dispatch Period. Interruptible Loads should also be able to
stay off-line until ordered by the System Operator to re-
connect to the Grid.

3.4 Reactive Power Support Ancillary Service

Operating characteristics and technical capabilities of Generating Units providing

Reactive Power Support Ancillary Service:

3.4.1 The Generating units and synchronous condensers shall be capable of

supplying its Active Power output, as specified in the Generator's
Declared Data, at less than 0.85 Power Factor Lagging and less than
0.90 Power Factor Leading at the Generating Unit's terminals, in
accordance with its Reactive Capability Curve (Refer to Attachment 4

Page 10 of 44
 and Attachment 2 - Testing, Certification and Accreditation Procedure).

3.4.2 Outside of the above range, but within its Reactive Power Capability
Curve, the generating unit may offer to supply/absorb additional reactive
power to/from the system if the System Operator so requires as an
ancillary service.

3.5 Black Start Ancillary Service

Operating characteristics and technical capabilities of Generating Units providing

Black Start Service:

3.5.1 Black Start plants must be put on-line and ready to extend power within
thirty (30) minutes upon receipt of dispatch instruction and can sustain the
operation for at least 12 hours.
3.5.2 Black Start and Fast Start capacity shall be:
3.5.2.1 Sufficient at strategic locations to facilitate the restoration of the
Grid to the normal state following a total System blackout.
3.5.2.2 Available at all times to facilitate the goal of a complete system
restoration in twelve (12) hours.
3.5.3 Redundancy of Black Start generation shall be taken into consideration
due to possibility of unit failure to start or transmission facility failures
preventing units from serving their intended loads.
3.5.4 No more than one (1) unit of a Black Start plant with multiple black start
units may be on planned maintenance at any one time.
3.5.5 When a Generating Unit becomes isolated from the Grid, the speed-
governing system shall provide Frequency Control to the resulting island
Grid (asynchronous control).
3.5.6 There shall be at least 50 MW of black start capability available per
Restoration Highway in Luzon, 20 MW for Visayas and 25MW for
Mindanao. However, the maximum Black Start capability shall be
determined by the System Operator, subject to confirmation by the Grid
Management Committee on an annual basis, taking into account the
technical requirement and financial considerations.

4 Required Levels of Ancillary Services

4.1 Primary Reserve Ancillary Service

The minimum required level for this Ancillary Service is equivalent to the
Contingency Criterion as shown in Table 1 below as prescribed by the PGC 2016
Edition:

Page 11 of 44
 Table 1: Frequency Response Obligation

Luzon Visayas Mindanao Units

Starting Frequency 60 60 60 Hz
Target Minimum Frequency 59.2 59.2 59.2 Hz
Contingency Protection Criterion 600 150 150 MW
Frequency Response Obligation
75 20 20 MW/0.1 Hz
(FRO),

4.2 Secondary Reserve Ancillary Service

The minimum Secondary Reserve service level shall be computed on an hourly

basis and shall be the equivalent to minimum of 4% of the hourly forecast demand.

The level of Secondary Reserve on the hourly basis can be computed as follows:

SR h = F h D x 4.0%

Where:
SR h = Secondary Reserve for the hour "h"
F h D = Forecast Demand for the hour "h"

Note: The 4.0% factor should be the minimum amount and this will be adjusted
depending on the requirement to cater VRE output variability in the Grid.

4.3 Tertiary Reserve Ancillary Service

To meet the Grid requirement, there must be enough Tertiary Reserve in each Grid
at any given time, as established by the System Operator. The minimum required
level for this service shall be equal to the Secondary Reserve required level in a
particular Grid in order to arm/bring back the Secondary Reserve in its required
minimum level 15 minutes after receipt of dispatch instructions. Not more than 50%
of Tertiary Reserve shall be allocated to Interruptible Loads during periods where
Sufficient Reserve capacities are available from generators.

The level of Tertiary Reserve on the hourly basis for a particular Grid can be
computed as follows:

TRAS h = SRAS h

4.4 Reactive Power Support Ancillary Service

The required level of Reactive Power Support Ancillary Service is dependent on

the system condition. Reactive Power Support Ancillary Service from generators

Page 12 of 44
 is at maximum during peak and off-peak periods. During peak periods, generators
are made to operate at lagging power factor to produce reactive power. While on
off-peak periods, some generators may be required to operate in leading power
factor to absorb reactive power. As such, the reactive power requirement of the
system can only be determined once the dispatch schedule of the generators is
available. In determining the required Voltage Control Ancillary Service for the
system, the System Operator will use a power system simulator (load flow
software).

4.5 Black Start Ancillary Service

4.5.1 Black Start Ancillary Service shall be contracted to qualified generators

considering there should be at least two (2) units contracted per power
restoration highway and one (1) should always be available at any given
time.

4.5.2 The system Operator shall determine regularly the best restoration
highways or sub-grids where there are available contracted BSAS provider.

5 Procurement of Required Ancillary Services

5.1 Methods of Procurement of Ancillary Services

5.1.1 The following Ancillary Services (AS) will be procured by the National Grid
Corporation of the Philippines (NGCP) from various Service Providers in
the Philippine Grid:

• Primary Reserve Ancillary Service

• Secondary Reserve Ancillary Service
• Tertiary Reserve Ancillary Service
• Reactive Power Support Ancillary Service
• Black Start Ancillary Service

5.1.2 NGCP as the System Operator and mandated by the RA 9136 to secure
the Grid shall procure the following Ancillary Service in the least cost
manner:

5.1.2.1. Primary Reserve Ancillary Service – Through long term ASPA

which should not be included in the WESM Energy and Reserve
co-optimization.

5.1.2.2. Secondary Reserve Ancillary Service – Through long term

ASPA which should not be included in the WESM Energy and
Reserve co-optimization.

5.1.2.3. Tertiary Reserve Ancillary Service – Through ASPA or WESM

Reserve Market which could be co-optimized with the energy
market provided that there is sufficient mitigating measure to
prevent abuse of market power such as but not limited to

Page 13 of 44
 secondary price cap for reserves approved by the ERC.

5.1.2.4. Reactive Power Support and Black Start Ancillary Services –

Through long term ASPA only.

5.2 Methods of Scheduling and Dispatch of Ancillary Services

5.2.1 Ancillary Service Response Monitoring

5.2.1.1. The system operator will regularly monitor the performance of

the AS providers. The data from NGCP's SCADA/EMS will be
used in monitoring the AS compliance.

5.2.1.2. In monitoring for AS providers operating in governor control

mode, data from SCADA/EMS, particularly; System Frequency
and Unit MW output will be analyzed regularly and compared
with the scheduled values for the particular services. Similarly,
the actual MVAR output and Substation voltages data from
SCADA/EMS will be analyzed and compared with the scheduled
values.

5.2.1.3. The actual synchronization time of black start providers are also
monitored using the Alarm/Event subsystem of the
SCADA/EMS.

5.2.2 Reserve Requirement Determination

SO shall prescribe the level of reserve requirement for each Grid based on
the results of assessment and simulation study and shall update the MO
the level of reserve required by each Grid that will be used on their daily
computation.

5.2.2.1. MO shall Generate reserve requirement for Primary Reserve,

Secondary Reserve and Tertiary Reserve based on 1200H DAP
run in accordance to reserve level provided by SO based on the
results of assessment and simulation study.

5.2.2.2. MO shall submit the reserve requirements to SO on or before

1300H Day-Ahead for review and validation.

5.2.2.3. SO shall submit to MO changes of reserve requirement if any,

on or before 2000H Day-Ahead.

Page 14 of 44
5.2.3 Scheduling Protocol

5.2.3.1 NGCP Contracted

5.2.3.1.1 NGCP Service Providers shall submit a nomination to the

SO day-ahead for approval.
5.2.3.1.2 SO shall send back the approved schedule to the NGCP-
Service Providers day-ahead.
5.2.3.1.3 NGCP- Service Providers shall nominate to the MO the
NGCP approved schedule for the particular trading
interval.
5.2.3.1.4 MO shall provide the SO with the Real-Time Dispatch
(RTD) containing energy and ancillary services
requirement for the trading interval.

5.2.3.2 Responsibilities of the Parties (SO/MO and AS providers):

5.2.3.2.1 The Service Providers shall submit daily to the System

Operator on or before 1400H of the day preceding the
dispatch day the following data:

o Status of Black Start equipment (for Black Start

providers)
o Hourly day-ahead capacity nominations for service
providers delivering PRAS, SRAS, TRAS, RPSAS
and BSAS services

5.2.3.2.2 SO shall prepare and issue to the Service Providers on

or before 1700H the hourly day-ahead schedule for
PRAS, SRAS, TRAS, RPSAS and BSAS. This Ancillary
Service Day-ahead Schedule will be based on the
following:

o Hourly reserve requirement;

o Ancillary capacity nomination;
o Nominated capacity and price of each AS Provider;
o Available Black Start units per restoration highway;
and
o Voltage Control Ancillary Service Requirement of the
System.

5.2.4 Dispatch Protocol

5.2.4.1 SO and/or the RCC dispatches all plants’ Real-Time-Dispatch

schedule provided by the MO according to reserve dispatch

Page 15 of 44
 implementation procedure. SO may undertake re-dispatch
procedures in the event of the following conditions:

o Outage of Transmission Lines or Substation Facilities;

o Violation of System Security Limits;
o Total System Failure;
o Unexpected Reduction of Generation Availability;
o Force Majeure Events; or
o Emergency Security Measures.

5.2.4.2 Service Providers shall implement the dispatch instructions and

ensure to provide their required Ancillary Services.

5.2.4.3 SO shall monitor the compliance of Ancillary Services providers

based on the approved Ancillary Services provider schedule using
the SCADA system and available meter data.

5.2.5 Tradable Ancillary Services under the WESM Regime

In case NGCP decides to procure the Tertiary Reserve Ancillary Service

from the Reserve Market, the scheduling shall be based on the WESM
Dispatch protocol.

5.2.5.1 Non-NGCP contracted Service Providers shall nominate to the

MO the reserve capacity.
5.2.5.2 MO shall include all the nominations received and shall be
incorporated in the market optimization model.
5.2.5.3 MO shall provide the SO the Real-Time Dispatch containing
the scheduled Energy and Ancillary Services for both
contracted and Reserve Market nominations.

Figure 5.2.5 below shows the process flow for the trading of Ancillary
Services within the WESM as described in this section.

Page 16 of 44
Figure 5.2.5. Trading Process Flow for Tertiary Reserve Ancillary Service

Page 17 of 44
5.3 Qualification and Testing of Service Providers

NGCP, as the System Operator, may use reasonable endeavors to procure

Ancillary Services from Qualified Generation Units and Qualified Interruptible
Load providers in order to maintain a sufficient level of Ancillary Services to the
Grid. To qualify as providers of Ancillary Services all prospective providers should have
undergone the certification process as defined in the PGC. If a provider has already been
certified as a qualified Ancillary Services provider, a verification testing will be conducted
no more than one (1) every two (2) years except when there are reasonable grounds to
consider such that the characteristics of the Generating Unit parameters differs from those
registered and/or it is not complying with any prescription of the PGC.

Aside from the certification, NGCP requires that all certified providers should have fully
functional direct interface with NGCP's SCADA/EMS. This means that relevant real time
data such as; MW, MVAR, KV, Circuit breaker or unit status and mode of control of the
qualified providers are available at the System Operators control centers. All AS capability
tests shall be conducted by the prospective AS providers to show proof to NGCP their
ability to provide AS. Upon evaluation of the test results, NGCP shall issue a certificate
indicating the type of AS, applicable capacity for AS and its validity. The following AS
capability tests will be conducted for all interested prospective AS providers:

5.3.1 Primary Reserve Capability Test

5.3.1.1 The prospective AS providers shall prove to NGCP their capability to

provide this service. Generators or ESS intending to provide this kind of
service should prove that their speed governing can respond to + 0.15 Hz
or less for generators and +0.06 Hz for ESS. The AS provider should be
able to produce the nominated reserve based on the Ramp-up Rate within
10 minutes. Refer to the Ancillary Services Testing, Certification and
Accreditation Procedures (Attachment 2) and Ancillary Services Standard
Technical Requirements (Attachment 3).

5.3.2 Secondary Reserve Capability Test

5.3.2.1 The prospective Generating Unit AS providers shall prove to

NGCP their capability to provide this service. This includes their ability to
respond to AGC command signals (from the SCADA/EMS of the System
Operator either raise/lower or analog signals). Capable to produce 90% of
the nominated reserve within 32 seconds and passed 90% of the total
samples. Refer to the Ancillary Services Testing, Certification and
Accreditation Procedures (Attachment 2) and Ancillary Services Standard
Technical Requirements (Attachment 3).

Page 18 of 44
5.3.3 Tertiary Reserve Capability Test

5.3.3.1 The prospective AS providers shall prove to NGCP their capability to

provide this service. Generators or Energy Storage System can provide
this kind of service whether synchronized in the Grid or off-line and should
prove that their units can produce the nominated capacity within thirty (30)
minutes and sustain their operation for at least two (2) hours. Generators
and Energy Storage System may at their own option prove their ability to
respond to AGC command signals (from the SCADA/EMS of the System
Operator either raise/lower or analog signals). Refer to the Ancillary
Services Testing, Certification and Accreditation Procedures (Attachment
2) and Ancillary Services Standard Technical Requirements (Attachment
3).

5.3.3.2 On the other hand, Interruptible Loads intending to supply this type of
service should prove that their nominated load demand can be dropped
fifteen (15) minutes after receipt of instruction from the System Operator
and should not re-connect that load until instructed by the System
Operator to do so. Refer to the Ancillary Services Testing, Certification
and Accreditation Procedures (Attachment 2) and Ancillary Services
Standard Technical Requirements (Attachment 3).

5.3.4 Reactive Power Support Capability Test

5.3.4.1 The prospective AS providers shall prove to NGCP their capability to

provide this service. Generators intending to provide this kind of service
should prove that their units can operate outside the PGC required power
factor range (85% PF lagging to 90% PF leading) to produce and absorb
reactive power. Refer to the Ancillary Services Testing, Certification and
Accreditation Procedures (Attachment 2) and Ancillary Services Standard
Technical Requirements (Attachment 3).

5.3.5 Black Start Capability Test

5.3.5.1 The prospective AS providers shall prove to NGCP their capability

to provide this service. Generators should be able to start on its
own without any feedback power from the Grid within thirty (30)
minutes and should be able carry load and successfully energized their
assigned Blackout Restoration Highway. Refer to the Ancillary Services
Testing, Certification and Accreditation Procedures (Attachment 2) and
Ancillary Services Standard Technical Requirements (Attachment 3).

5.3.6 Failure of Capability Test & Re-Test Period

5.3.6.1 Certified plants that fail in the capability test should endeavor

Page 19 of 44
 to correct the deficiency as required in the PGC, within a reasonable
period of time less than sixty (60) days from the date of the failed
test, otherwise these plants may not be allowed to offer their AS in
that annual period.

5.3.6.2 The System Operator will report to ERC the Service Providers that failed
to rectify the deficiencies of the capability test, within the reasonable
period of sixty (60) days.

5.3.6.3 After the failure of the capability test, follow-up testing should be
conducted by the NGCP on a date agreed with the AS provider. Such
date should fall within sixty (60) days of the written request from NGCP
to rectify the reasons for failure.

5.3.7 Testing of Service Providers

5.3.7.1 Scheduled tests shall be conducted to confirm the compliance of

Generating Units' capability and availability to deliver the
Ancillary Services that the Generator had agreed to provide. All
tests shall be recorded and witnessed by the authorized
representatives of NGCP and the Service Providers. The
test procedures in Attachment 2 will be used in these tests.

5.4 Monitoring of Ancillary Service Provision

5.4.1 Capability Re-Test Trigger Report

5.4.1.1 The System Operator will provide a written exception report where the
monitoring of an AS provider demonstrates a breach in its capability
requirements on two consecutive monitoring instances. Such monitoring
to occur at the discretion of the System Operator but should be a minimum
of once per day, on two consecutive days, where an issue is identified.

5.4.1.2 Where a monitoring exception report is issued by the System Operator,

the System Operator can trigger a re-test of the AS provider's capability to
prove or disprove whether the AS provider can continue to be scheduled
and paid for a particular AS. The scheduling and payment for AS to this
AS provider is suspended from the date of the issuance of the exception
report, until the AS provider capability is re-tested and certified in writing
by the System Operator.

5.4.1.3 The AS provider can request in writing to the System Operator a delay of
no more than sixty (60) days before the re-test in order to rectify or replace
any control or other equipment which has caused the failure of the

Page 20 of 44
 capability monitoring.

5.4.1.4 Re-testing shall occur, on a date agreed between the System Operator
and the AS provider. The scheduling and payment for AS to this AS
provider can only commence once a successful capability test has been
achieved, and the AS has been successfully re-scheduled under the
normal mechanism for scheduling specified elsewhere in the ASPP or
related documents.

5.5 Payment to Service Providers

5.5.1 Payment to Service Providers shall be based on the ERC-approved Ancillary

Service Procurement Agreement (ASPA).

5.5.2 Penalties for non-compliance will be included in the statement of accounts at the
end of the billing period.

5.5.3 The Service Providers receive, evaluate and validate the submitted statement of
account prepared by NGCP-and/or the SO and return it for billing settlement.

5.5.4 NGCP and/or the SO shall submit monthly report on Ancillary Services schedule
to ERC no later than the 15th day of the succeeding month.

6 Ancillary Service Compliance Monitoring

6.1 SO shall monitor the compliance of Ancillary Services providers based on the approved
Ancillary Services provider schedule using the SCADA system and available meter data.
Penalties for non-compliance will be included in the statement of accounts at the end of
the billing period.

6.2 The Service Providers receive, evaluate and validate the submitted statement of account
prepared by NGCP-and/or the SO and return it for billing settlement.

7 Transitory Provisions

All approved and existing ASPA shall remain in full force and effect until their termination date,
unless the accredited power plant of the AS Provider cannot comply with the technical
requirements provided in the 2016 PGC. Accordingly, the AS categories of the ASPA will be
converted as follows:

i. Contingency Reserve – Primary Reserve;

ii. Dispatchable Reserve – Tertiary Reserve; and
iii. Regulating Reserve – Secondary Reserve.

Page 21 of 44
 However, the AS Provider with an existing ASPA may opt to renegotiate its offer in a new ASPA
that will be filed to the Honorable Commission for approval.”

8 References

Unless otherwise amended and approved by the ERC, the following references are
relevant to interpreting the terminology used in these ASPP.

1. Electric Power Industry Reform Act of 2001, (EPIRA), Republic Act No. 9136.
2. Philippine Grid Code 2016 Edition.
3. Philippine Distribution Code, December 2001.
4. Wholesale Electricity Spot Market (WESM) Rules, 2002.
5. Open Access Transmission Services (OATS) Rules, 2006.
6. Ancillary Services Cost Recovery Mechanism (ASCRM), September 2006.
7. Guide to Ancillary Services in the National Electricity Market, by Australian Energy Market
Operator
8. Reserve Market Arrangements under Section 3.3 of the WESM Rules, administered by
the Market Operator (MO) and the System Operator (SO).

Page 22 of 44
ATTACHMENT

Page 23 of 44
 Attachment 1- Certification of Ancillary Service Providers

1.0 PURPOSE

1.1 This Attachment establishes guidelines to be followed on the certification of

Ancillary Service Providers who would like to provide Ancillary Services to ensure
quality of power delivered through the Grid.

2.0 SCOPE

2.1 This Attachment covers only the certification process including contracting for
Ancillary Service Providers.

3.0 DEFINITION OF TERMS/ACRONYMS

3.1 Definition of Terms

3.1.1 Ancillary Service Provider - a person or entity providing Ancillary

Services regardless of whether it is duly registered or not with the
Market Operator, provided, however, that upon accreditation by the
System Operator and prior to trading in the WESM, it shall register with
the Market Operator.

3.1.2 Ancillary Services - As defined in the Grid Code and WESM Rules.

3.1.3 Generator - any person or entity authorized by the ERC to operate a

facility used in the generation of electricity.

3.1.4 System Operator - the section within the Transmission Provider’s

organization responsible for generation dispatch, or the implementation
of the generation dispatch schedule of the Market Operator, the
scheduling and dispatch of Ancillary Services, and operation to ensure
the safety, power quality, stability, reliability, and the security of the Grid.

3.1.5 Transmission Provider - The Concessionaire with the exclusive

national franchise for the operation, maintenance and expansion of the
Grid, as provided for in RA 9511. For the avoidance of doubt, the
Transmission Provider includes the System Operator.

3.2 Acronyms

3.2.1 ACC - Area Control Center

3.2.2 ASP - Ancillary Service Provider
3.2.3 AS - Ancillary Service
3.2.4 NCC - National Control Center
3.2.5 OPD - Operations Planning Division
3.2.6 SCADA - Supervisory Control and Data Acquisition
3.2.7 SO - System Operations or System Operator
3.2.8 TransCo - National Transmission Corporation
3.2.9 NGCP - National Grid Corporation of the Philippines, the
concessionaire for TransCo’s assets.

Page 24 of 44
4.0 REFERENCES

4.1 Philippine Grid Code 2016 Edition

Page 25 of 44
5.0 PROCEDURE

FLOWCHART RESPONSIBILITY DETAILS

START

1 Receive Application Transmission 1. The Transmission Provider,

for Accreditation as
Ancillary Service
Provider
Provider upon receipt of application
for accreditation and
required documents, will
perform initial evaluation
based on the technical
requirements in Section 3 of
this ASPP.

2 Preparation Transmission 2. Notify and coordinate with

for Plant B Provider the ASP regarding the test to
be performed. Check the
Testing
availability of test equipment
and tools for testing.

3 Coordination with the Transmission 3. Coordinate with NCC/ACC

concerned NGCP-SO Provider and OPD for the schedule of
Group testing.

4 Proceed with the test Generator 4. Conduct the test to be

witnessed by the authorized
representative of the
Transmission Provider.

Page 26 of 44
 FLOWCHART RESPONSIBILITY DETAILS

Test
YES
successful?

NO

5 Correction of Generator 5. Generator shall correct the

plant deficiency deficiency of its generating
unit/s within an agreed
period to attain the relevant
registered parameters for
that unit/s.

6 Notification to Generator 6. The Generator shall

immediately notify the
Transmission
Transmission Provider once
Provider regarding the generating unit/s
corrected achieves the registered
parameters of parameters.
generating units

7 Request to carry out Transmission 7. Transmission Provider shall

Provider require the plant to conduct
a re-test
a retest in order to
demonstrate that the
appropriate parameter has
already been restored to its
registered value.

Transmission
8 Issuance of Provider 8. Issue Certification to ASP
certificate

Page 27 of 44
 FLOWCHART RESPONSIBILITY DETAILS

9 Proceed with the Transmission 9. Negotiate with ASPs

Provider regarding the details of the
negotiation
contract/agreement.

10 Contract Transmission 10. Prepare Memorandum of

Provider Agreement/Contract for
preparation/signing
Generator signature of both parties
concerned.

END

Page 28 of 44
 Attachment 2 - Ancillary Service Testing, Certification and
Accreditation

1.0 PURPOSE

To establish the guidelines to be used by NGCP for testing plant for certification to provide
Ancillary Services; and for the Issue of Certification/Accreditation as an Ancillary Service
Provider.

2.0 SCOPE

This procedure covers the testing and certification of Ancillary Services Providers for
Primary Reserve, Secondary Reserve, Tertiary Reserve, Reactive Power Support and
Black Start Ancillary Services as required by the Philippine Grid Code.

3.0 DEFINITIONS OF TERMS/ACRONYMS

3.1 Definition of Terms

3.1.1 Ancillary Service Provider(s) – A person or entity providing Ancillary Services

regardless of whether it is duly registered or not with the Market Operator,
provided, however, that upon certification by the Transmission Provider and
prior to trading in the WESM, it shall register with the Market Operator.
3.1.2 Ancillary Services – Support services that are necessary to support the
transmission capacity and flow of Active Power in order to maintain power
quality and the reliability and security of the Grid. Ancillary Services covered
by this Ancillary Services Procurement Plan include Primary Reserve,
Secondary Reserve, Tertiary Reserve, Reactive Power Support and Black
Start.
3.1.3 Automatic Generation Control (AGC) – The regulation of the power output of
generating units within a prescribed area in response to a change in Power
System Frequency, tie line loading, or the relation of these to each other, so as
to maintain the Power System Frequency or the established interchange with
other areas within the predetermined limits or both.
3.1.4 Black Start - the process of recovery from total system blackout using a
generating unit with the capability to start and synchronize with the Power
System without an external power supply.
3.1.5 Primary Reserve Ancillary Service – are capacities from qualified Generating
Units and Energy Storage System that are allocated to stabilize the system
Frequency and to cover the loss or failure of a Synchronized Generating Unit
or a transmission line or the power import from a single circuit interconnection.
3.1.6 Control Center – a facility used for monitoring and controlling the operation of
the Grid, Distribution System, or a User System.
3.1.7 Dispatch Instruction – refers to the instruction issued by the System Operator
to the generators with scheduled generating units and the generators whose
generating units provide ancillary services to implement the final dispatch
schedule in real time.
3.1.8 Tertiary Reserve Ancillary Service- are capacities from qualified Generating
Units, Energy Storage System and Interruptible Loads that are readily available
for dispatch in order to replenish the Secondary Reserve and to cover variation
of VRE generations. This type of service should also be used in maintaining the

Page 29 of 44
 Frequency at a pre-established value and/or returning the Frequency to 60Hz
in case the Primary and Secondary Reserve are not adequate or already
exhausted.
3.1.9 Frequency – is the number of complete cycles of a sinusoidal current or voltage
per unit time, usually measured in cycles per second or hertz.
3.1.10 Frequency Control – is a strategy used by the System Operator to maintain
the frequency of the Grid within limits prescribed by the Grid Code by the timely
use of Primary Reserve, Secondary Reserve, and Demand Control.
3.1.11 Generator – is an entity authorized by the Energy Regulatory Commission to
operate a facility used in the generation of electricity.
3.1.12 Power Factor – the ratio of Active Power to Apparent Power.
3.1.13 Primary Response – is the automatic response of a Generating unit to
Frequency changes, released increasingly from zero to five seconds from the
time of frequency change, and which is fully available for the next 25 seconds.
The unit operates in a Governor Control mode at dead band setting within +
0.15 Hz.
3.1.14 Reactive Power – the component of electrical power representing the
alternating exchange of stored energy (inductive or capacitive) between
sources and loads or between systems, measured in VAR or multiples thereof.
For AC circuits or systems, it is the product of the RMS value of the voltage and
the RMS value of the quadrature component of the alternating current. In a
three phase system, it is the sum of the reactive power of the individual phases.
3.1.15 Reactive Power Capability Curve – a diagram which shows the reactive
power capability limit versus the real power within which a generating unit is
expected to operate under normal condition.
3.1.16 Reactive Power Support - the injection or absorption of reactive power from
Generators to maintain Transmission System voltages within ranges prescribed
in the code.
3.1.17 Secondary Reserve Ancillary Service – are capacities from qualified
Generating Units and Energy Storage System that are allocated to restore the
system frequency from the quasi-steady state value as established by the
Primary Reserve back to the nominal frequency of 60 Hz. This type of service
should also be used to provide supply demand balance during small frequency
deviations.
3.1.18 Secondary Response – is the automatic response to frequency change which
is fully available 25 seconds from the time of frequency change to take over
from the Primary Response, which is sustainable for at least 30 minutes.
3.1.19 Toolbox Meeting - a brief meeting done before the start of any activity to give
everyone clarity about what needs to be done and why. It is also a way of
dealing with any issues up front, and of improving teamwork through better (2-
way) communication.
3.1.20 Voltage – the electromotive force or electric potential difference between two
points which causes the flow of electric current in an electric circuit.

3.2 Acronyms
3.2.1 ACC – Area Control Center
3.2.2 ACTO – Assistant Chief Technical Officer
3.2.3 AGC – Automatic Generation Control
3.2.4 ASP – Ancillary Service Provider
3.2.5 ASPP – Ancillary Service Procurement Plan
3.2.6 BS – Black Start
3.2.7 DGS – Day-ahead Generation Schedule

Page 30 of 44
 3.2.8 FR – Frequency Regulation
3.2.9 LSO – Luzon System Operations
3.2.10 MSO – Mindanao System Operations
3.2.11 MW – Megawatt
3.2.12 MVAR – Mega Volt-Ampere Reactive
3.2.13 MEX – Maximum Excitation Level
3.2.14 NOD – Network Operations Division
3.2.15 OPS – Operations Planning Section
3.2.16 PF – Power Factor
3.2.17 PQA – Power Quality Analyzer
3.2.18 PR – Primary Reserve
3.2.19 PRH – Power Restoration Highway
3.2.20 RCC – Regional Control Center
3.2.21 RPS – Reactive Power Support
3.2.22 RSO – Regional SO
3.2.23 SR – Secondary Reserve
3.2.24 SCADA – Supervisory Control and Data Acquisition
3.2.25 SO – System Operations
3.2.26 TR – Tertiary Reserve
3.2.27 VSO – Visayas System Operations

4.0 GENERAL REQUIREMENTS

4.1 The Annual Ancillary Service Test Schedule is already approved.

4.2 The RCC was informed of the scheduled test.
4.3 Test equipment to be used must be according to standard.
4.4 Personnel assigned to conduct the test should be qualified and knowledgeable.
4.5 Utmost safety of the plant is a priority. Abort the test if conditions will lead to plant
tripping.
4.6 The test equipment is installed to monitor the unit output MW, MVAR, KV and the
system frequency.
4.7 System at normal condition.
4.8 For reactive power test, voltage variation in the system should not exceed + 5% at
the connecting point. Compensation should be readily available from other
generating units to limit voltage within the prescribed limits.
4.9 For reactive power test, the generator capability curve shall be the basis for MVAR
loading.
4.10 For Primary Reserve test, the unit is on-line and operating in Governor Control
mode.

5.0 REFERENCES

5.1 PM-NGCP-01 – Control of IMS Document

Philippine Grid Code 2016 Edition

Page 31 of 44
6.0 PROCEDURE

ACTIVITY RESPONSIBILITY DETAILS

START

1. Receive PNPD/RSO 1.1 PNPD/RSO upon receipt of required

Application for documents and endorsement from RRA for
Accreditation as accreditation will perform an initial
Ancillary Service evaluation for the particular Ancillary
Provider Service(s) applied for based on the
standard technical requirements.

Note: This is applicable only to new

providers. Generators which have already
been certified are scheduled for an Ancillary
Service test for renewal of certification
based on the approved work plan schedule
of Ancillary Service Section of PNPD
annually.

1.2 For BS Ancillary Service Test, the following

shall be considered:

1.2.1 Annual BS test energization is up to

the Plant switchyard only for renewal of
certification/accreditation.

1.2.2 A BS test shall be extended only to its

power restoration highway if either of
the following conditions exist:

1. Newly commissioned power plants.

2. Newly refurbished power plants
3. For a certified BS provider, if there is
no black-out within the effectivity of
Ancillary Services Procurement
Agreement.
4. New restoration highway.

1.2.3 Representative from ACC/RCC will

conduct the BS test if the activity will be
extended to its restoration highway.

A 1.3 Prepare Notice of Meeting to be signed by

Regional Head addressed to all concerned
groups (copy furnish NOD, ACTO-SO).

Page 32 of 44
 A

2. Recommend Test Head, PNPD 2.1 Review and endorse test plan, applicable
Procedure and Instruction Manual/s and schedule.
Schedule for
Approval

3. Approve the AS Head, RSO 3.1 Head, RSO approve the scheduled AS test.
Test Schedule The office of RSO Head shall provide copy
to ACTO-SO and Head-NOD for
information.

4. Conduct Toolbox Head Engineer/ 4.1 Conduct toolbox meeting with all concerned
Meeting with all Representative- groups with the following agenda:
Concerned ASS Plant-
Groups Operations 4.1.1 Schedule of certification test providing
Grid Dispatcher for the required 7-days lead time and
/Plant Electrical taking into consideration the
Maintenance following:
Engineer 1. Inclusion of the schedule in the
(Other NGCP DGS for non-market based
group concerned operation.
if applicable) 2. For market-based operation,
inclusion of the schedule in the
non-security limits as needed.
3. Final schedule shall have the
concurrence of all parties involved.

4.1.2 Test plan and applicable Instruction

Manual/s such as:
D 1. SR test manual
2. PR test manual
3. RPS test manual
4. BS test manual
5. TR test manual
6. IL (TR) test manual

4.1.3 Logistical requirements which include:

1. Service vehicle and
accommodation.
2. PQA, test manuals, technical
charts and previous results.
B
3.

Page 33 of 44
 B 4.1.4 Minutes of meeting shall be properly
recorded and signed by all parties
involved.

5. Conduct the AS Head Engineer / 5.1 Conduct on-site briefing and discussion on
test Lead Engineer, the basic requirements prior to the AS test
ASS/PNPD/RSO such as:
Plant Operations 5.1.2 Electrical technicians to connect the
Grid Dispatcher PQA.
/Plant Electrical 5.1.3 Other technical diagrams, like Power
Maintenance Capability Curve, etc.
Engineer
5.2 ASS shall decide on the sequence of the
test with confirmation from Plant
Operations and Grid Dispatcher.

Conduct any or combination of the

following AS tests based on the particular
request for certification/ accreditation:

1. PR AS Test
2. SR AS Test
3. TR AS Test
4. RPS AS Test
5. BS AS Test

5.3 Duration of tests is based on the approved

time and schedule which had been
submitted to the OPS for clearance and
implementation.

6. Sign initial AS Head, ASS- 6.1 AS Test results shall be signed by the
test result PNPD following:
documents Shift In-Charge, 1. Head Engineer, ASS
Plant 2. Shift-In-Charge, Plant
Others (as may 3. Plant Manager (if present)
be applicable) 4. PNPD Head (if present)

6.2 Furnish Plant Shift-In-Charge initial

copies of the AS Test reports.

7. Process, Engineer, 7.1 Generate, process, analyze and submit to

evaluate and ASS/PNPD/RSO Head Engineer, ASS/PNPD-RSO on the
analyze the AS 12th working day the test results.
test result

Page 34 of 44
 C

8. Prepare final Head Engineer, 8.1 Prepare and submit on the 15th working day
Generator AS ASS/PNPD/RSO after the test, the Plant Ancillary Service
test report tests final report.

9.1 If the final AS test results conform to the

standards, recommend for certification.

9.2 If the final test report did not meet the

9. Test NO required technical standards, inform
Passed? Generator, copy furnish ACTO.

YES

10. Endorse Head, Regional 10.1 Endorse Generator AS test report.

Generator AS SO
test report 10.2 Recommend/Endorse certificate to ACTO-
/Recommend SO for approval.
certification

11. Sign/Approve ACTO, SO 11.1 Approve certificate.

Certificate
Note: Validity of Certificate is two years.
E However, re-test may be conducted subject
to RRA’s approval when there are
reasonable grounds to consider such that
the characteristics of the Generating Unit
parameters differs from those registered
and/or it is not complying with any
prescription of the PGC.

12. Provide copy of Engineer, ASS 12.1 Send original copy of

Accreditation accreditation/certification to Generator and
Certificate to provide scanned copy to RRA and office of
Generators and the CTO.
RRA
12.2 Update database of ASP.

End

Page 35 of 44
 E

13. Clarify with Head Engineer, 13.1 Discuss the test result with the
Generator the ASS/PNPD/RSO Generator that the AS Technical
Final Report requirements were not met.

14.1 If reasons are acceptable, reconsider

Generator’s request for a re-test.
NO Otherwise, tag the test as failed.
14.
Reasons End
Accepted?

YES

15. Request to carry- Generator 15.1 The Generator shall request to carry-out a
out a re-test re-test.
(Repeat task 4 – 8).

Page 36 of 44
 Attachment 3 – Ancillary Services Standard Technical
Requirements

Accreditation Testing Compliance Monitoring

Performance
Reserve Type Monitoring Monitoring
Measures Performance Criteria Performance Criteria
Scheme Scheme
Capacity, MW 100% 100%
Speed Droop setting 5% or less 5% or less 1. NGCP
Droop Response EMS/SCAD
≥80% ≥80%
(MW/Hz) A & AS Web
Deadband setting, (±) 0.15 or less (Gen) 0.15 or less (Gen) • Continuous
Primary Reserve 1. PQ Analyzer
Hz 0.06 (ESS) 0.06 (ESS) monitoring
(GCM) 2. Plant’s DCS
Reaction 5 seconds 5 seconds • Actual
Based on the Ramp-up Based on the Ramp-up Dispatch
Saturation
Rate within 10 min. Rate within 10 min. 2. Dispatcher’s
30 minutes or as E-log
Sustainability N/A
required by the system
Based on actual
Capacity, MW Within ±1% scheduled
testing
Deadband setting, (±) 1. NGCP
0.08 0.08 or greater
Hz EMS/SCAD
90% of the desired A & AS Web
Secondary
generation should be 1. NGCP EMS/ • Continuous
Reserve (AGC or 90% of the desired
reach within 32 SCADA (For monitoring
Manual if AGC is generation should be
Reaction seconds. AGC) • Actual
not operational) reach within 32 seconds.
Passed 90% of the Dispatch
total samples. 2. Dispatcher’s
E-log
Saturation 32 seconds 32 seconds
Sustainability N/A 30 minutes (minimum)
Based on actual Within ±1% scheduled 1. NGCP
Tertiary Reserve
testing (AGC) (Luz) EMS/SCAD
(Manual for Capacity, MW
Based on Saturation – Within ±3% scheduled A & AS Web
providers coming
30 min. (Manual) (Vis/Min) • Continuous
from shutdown or 1. PQ Analyzer
Reaction 15 minutes 15 minutes monitoring
AGC For on-line 2. Plant’s DCS
Saturation 30 minutes 30 minutes • Actual
providers)
Dispatch
120 minutes (Manual)
Sustainability 60 minutes (minimum) 2. Dispatcher’s
N/A (AGC)
E-log
15 minutes after the 15 minutes after the 1. NGCP
Reaction
dispatch order dispatch order EMS/SCAD
Frequency Activation 59.4 Hz 59.4 Hz A & AS Web
Tertiary Reserve uniform load • Continuous
Sustainable Load 1. PQ Analyzer uniform load throughout
applicable to throughout the monitoring
Reduction 2. Plant’s DCS the dispatch period
Interruptible Load dispatch period • Actual
Minimum Interruptible At least 1 MW per At least 1 MW per Dispatch
Load, MW Provider Provider 2. Dispatcher’s
E-log
Not Required 1. NGCP
(as long as it had EMS/SCAD
Based on the capacity
Capacity successfully energized A & AS Web
of the unit under test
its Power Restoration • Continuous
Highway) monitoring
Black Start
Reaction Within 30 minutes Within 30 minutes • Actual
1. Plant’s DCS Dispatch
Service
Not Required 2. Dispatcher’s
(as long as it had E-log
Sustainability successfully energized 12 Hours 3. Simulated
its Power Restoration emergency
Highway) exercises

Page 37 of 44
 Accreditation Testing Compliance Monitoring
Performance
Reserve Type Monitoring Monitoring
Measures Performance Criteria Performance Criteria
Scheme Scheme
Adjustment of power 1. NGCP
Actual dispatch
Capacity factor until voltage EMS/SCAD
capability
correction is achieved A & AS Web
• Continuous
Reactive Power 1. PQ Analyzer
monitoring
Support Service Power Factor within Less than 0.85 pf 2. Plant’s DCS Less than 0.85 pf
• Actual
Reactive Power lagging and less than lagging and less than
Dispatch
Capability Curve 0.90 pf leading 0.90 pf leading
2. Dispatcher’s
E-log

Page 38 of 44
Attachment 4 – Generator Reactive Capability Limitation

Page 39 of 44
 Attachment 5 – Sample Computations

Section 4.5 Payment to Ancillary Services Providers

Note: These are sample computations for the current ASPAs approved by the Energy
Regulatory Commission. Payment computation may change over time when the ERC
approves a different payment mechanism for new ASPAs.

A. Primary Reserve (PR)

= ℎ + −

Where:
#
ℎ = ℎ × ! "
#
= $ % × ! +& ' ""( − ) *+ , -

If computed Incidental Energy < 0, set value of Incidental Energy payment at 0

Scheduled Capacity (SC), kW = 50,000

Undispatched Capacity, kW = 35,000
Generation (dispatched capacity), kWh = 11,160,000
Non-compliant hours, h = 5
WESM Rate, PhP per kWh = 4.00
PR Rate, PhP per kW per hour = 1.50
Variable Rate, PhP per kWh = 1.50
No. of Hours, h = 744
Undispatched Capacity Payment, PhP = 39,060,000.00
Incidental Energy Payment = 33,480,000.00
WESM Revenue = 44,640,000.00
Penalty (PhP) = 187,500.00
PR Payment (PhP) = 38,872,500.00

B. Secondary Reserve (SR)

= ℎ +
−

Where:
#
ℎ = ℎ × * ! "
#
= $ % × * ! +& ' ""( − ) *+ , -

If computed Incidental Energy < 0, set value of Incidental Energy payment at 0

Page 40 of 44
Scheduled Capacity (SC), kW = 50,000
Undispatched Capacity, kW = 1,000
Generation (dispatched capacity), kWh = 29,760,000
Non-compliant hours, h = 5
WESM Rate, PhP per kWh = 4.00
SR Rate, PhP per kW per hour = 2.25
Variable Rate, PhP per kWh = 1.50
No. of Hours, h = 744
Undispatched Capacity Payment, PhP = 1,674,000.00
Incidental Energy Payment = 111,600,000.00
WESM Revenue = 119,040,000.00
Penalty (PhP) = 281,250.00
SR Payment (PhP) = 1,392,750.00

C. Tertiary Reserve (TR)

. = ℎ + −

Where:
#
ℎ = ℎ × . ! "
#
= $ % × . ! +& ' ""( − ) *+ , -

If computed Incidental Energy < 0, set value of Incidental Energy payment at 0

Scheduled Capacity (SC), kW = 50,000

Undispatched Capacity, kW = 40,000
Generation (dispatched capacity), kWh = 7,440.000
Non-compliant hours, h = 5
WESM Rate, PhP per kWh = 4.00
TR Rate, PhP per kW per hour = 1.25
Variable Rate, PhP per kWh = 1.50
No. of Hours, h = 744
Undispatched Capacity Payment, PhP = 37,200,000.00
Incidental Energy Payment = 20,460,000.00
WESM Revenue = 29,760,000.00
Penalty (PhP) = 156,250.00
TR Payment (PhP) = 37,043,750.00

D. Reactive Power Support Service (RS)

2
* = /*0 # × * !1 − *
#

Scheduled Quantity (SQ), kVAR = 20,000

Page 41 of 44
 Rate, PhP per kVAR per hour = 4.00
No. of Hours, h = 8
Payment, PhP = 640,000.00
Penalty (PhP) = 40,000.00
RPS Payment (PhP) = 600,000.00

Note: For Reactive Power Support, the compensable kVAR is the reactive power provided outside
of the required 0.85pf lagging and 0.90pf leading, but within the generating unit’s capability curve.

E. Black Start Service (BS)

(monthly payment per provider)
2
3* = /4 #
× 3* !1 − 3*
#

Dispatched Capacity, kW = 100,000

Rate, PhP per kW per hour = 6.2185
No. of Hours, h = 12
Payment, PhP = 7,462,200.00
Penalty (PhP) = 1,041,666
BS Payment (PhP) = 6,420,534.00

Note: For Black Start Service, the sample computation is for those with ASPA approvals on a
“per occurrence” payment basis. True cost of generation is paid only when the Black Start
Service plant is dispatched to re-power the Grid.

Page 42 of 44
 Attachment 6 – Tertiary Reserve Interruptible Load
Certification Test

1.0 PURPOSE
1.1 To establish the guidelines that NGCP shall use to test the load to be contracted for
Tertiary Reserve - Interruptible Load that can be interrupted manually.

2.0 SCOPE
2.1 This procedure covers the Tertiary Reserve type of Ancillary Service that qualifies
Interruptible Load through manual load dropping to ensure the provision of capacity
which is necessary to respond manually to unexpected loss of Generating Unit.

3.0 DEFINITIONS OF TERMS/ACRONYMS

3.1 Definition of Terms

3.1.1 Tertiary Reserve – the synchronized/unsynchronized generating capacity that
is not scheduled for regular energy supply, PR or SR, or Interruptible Loads
(IL) not scheduled for TR and that are readily available for dispatch in order to
address the security and reliability of the Grid at any given interval.
3.1.2 Qualified Interruptible Load – A load which has been tested and certified as
qualified by the System Operator under the provisions of this ASPP document,
where only the Qualified Interruptible Loads are eligible to be scheduled as
and receive payments for providing Ancillary Services.

3.2 Acronyms

3.2.1 TR – Tertiary Reserve

3.2.2 NCC – National Control Center

4.0 GENERAL REQUIREMENTS

4.1 The single line diagram of the load to be dropped which had been submitted to the
System Operation.
4.2 The load profile of the load being offered as Interruptible Load (Tertiary Reserve).
4.3 System at normal condition.
4.4 Approval from the National/Regional Control Center 7 (seven) days to actual date of
testing.
4.5 Utmost safety is a priority. Abort the test if the conditions will affect the normal
operation of the system.

5.0 REFERENCES

5.1 Ancillary Services Procurement Plan

5.2 Philippine Grid Code Amendment No. 2

Page 43 of 44
7.0 PROCEDURE

Activity Responsibility Details

START

1. Request Clearance Engineer - ASS Request NCC/ACC personnel regarding the

from Control Center test to be done.
regarding testing of
Interruptible Load by
manual load dropping 7
(seven) days prior to
actual date of testing.

2. Proceed to Engineer - ASS Perform preliminary inspection and standard

Interruptible Load setting of measuring instruments.
manual load drop
testing

3. Connect PQ Engineer - ASS Connect test instrument e.g. PQ analyzer, to

analyzer to measure measure the load to be interrupted. Make
the load to be sure that the power supply is off in connecting
interrupted test instrument and proper grounding
connection before powering up.

4. Activate the trip coil Load Control Initiate activation of trip coil of designated
of the designated Room Operator / circuit breaker remotely or manually.
circuit breaker within Engineer - ASS
30 mins. from receipt
of instruction from
NCC.

5. Record the Engineer - ASS Record the readings of the pick-up frequency
activation time and and the corresponding interrupted load
quantity of load recorded in the PQ analyzer and/or in the
interrupted. digital meter.

END

Page 44 of 44