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NGCP calls for holistic approach to address energy woes

Grid operator National Grid Corp. of the Philippines on Wednesday called for a holistic, multilateral solution to address the country's energy woes.

NGCP said in a statement it continues to coordinate with the Department of Energy and various stakeholders to address issues raised during hearings with the Senate and House committee on energy.

 “We have always complied and will continue to comply with our mandate and the directives of concerned stakeholders. NGCP is a private company, and while we appreciate the guidance and help of the power players, at the end of the day, the objective is not to focus on AS [ancillary services] alone," NGCP said.

"Let us work together to find a holistic solution to the problems we face. In our view, this requires a deeper analysis of the problem, and a broader strategy than just firm contracting,” the company said.

The company, along with representatives from DOE, Energy Regulatory Commission, National Transmission Corp. and other agencies met on Aug. 4 to discuss the energy industry’s most pressing matters.

NGCP welcomed the meeting as an opportunity to clear matters regarding the power sector including ancillary services which the company is addressing by reviewing the existing contracts and capacities needed.

"The company is awaiting clarification on some matters regarding DOE guidelines which were all expressed in a letter submitted to the Department last 15 July. NGCP sees this as crucial to effectively and efficiently comply with the directive to convert from non-firm to firm contracts," NGCP said.

NGCP said delays in Grid Operations and Maintenance Program and Transmission Development Plan submission was borne out of clarifications it sought from DOE regarding the company’s 2020 submission.

The company said it exhibited compliance with its submission of the 2021-2023 GOMP to DOE for approval in June 2021, endorsing the same to Independent Electricity Market Operator of the Philippines for concurrence.

"NGCP assures that for its future submissions, all maintenance plans which fall within the peak period will be rejected to prevent any issues on unscheduled power interruptions," the company said.

NGCP also acknowledged its responsibility of consistently updating the TDP.

It said its technical group continues to work on its annual submission to DOE, and actively conducts consultations with all relevant stakeholders since its inception in 2009.

The company said ERC’s Compliance and Performance Review is ongoing. This involves the audit of NGCP's operations, programs, and processes.

Preparations for the audit began in September last year, with the requested compliance documents submitted to the ERC in March.

“NGCP assures the public and its stakeholders that the company remains committed to cooperate with ERC and the auditors assigned to perform the review,” the company said.

NGCP also addressed concerns on delays in transmission line projects, which was raised during the Senate committee on energy hearings.

The company said it regularly submits monthly Transmission Project Status Report to the DOE and reports the status of permits/issuances and the status of expropriation cases filed by NGCP with concerned local government units and agencies.

"NGCP has also been proactive in seeking the Department’s assistance to issues on permitting and right-of-way concerns, which are the major causes of delay for transmission projects across the country," NGCP said.

NGCP called on all energy players to work together and come up with a holistic approach to these problems.

NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and vice chairman of the board Henry Sy Jr. and co-vice chairman Robert Coyiuto Jr.

Topics: NGCP , holistic approach , Henry Sy Jr. , Robert Couito Jr.
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