ERC Approves Key Ancillary Service Agreements to Bolster Grid Stability Amid Renewable Shift

The Energy Regulatory Commission (ERC) has granted final approval for multiple Ancillary Services Procurement Agreements (ASPAs) between the National Grid Corporation of the Philippines (NGCP) and a range of battery energy storage system (BESS) operators and power generators. The decision, finalized during the ERC’s 1127th Regular Commission Meeting, is aimed at strengthening the country’s grid reliability in the face of rising electricity demand and the accelerating integration of renewable energy sources.

The approved ASPAs cover both regulating reserves—which provide real-time frequency balancing—and contingency reserves, designed to serve as backup in the event of sudden power outages.

Universal Power Solutions, Inc. (UPSI) received approval for ancillary services from five BESS facilities across the country. The approved tariff rates are as follows:

• Lamao BESS, Limay, Bataan – ₱2.0856/kWh (regulating), ₱0.0811/kWh (contingency)
• San Manuel, Pangasinan – ₱1.0489/kWh (regulating), ₱0.0649/kWh (contingency)
• Mariveles, Bataan – ₱1.7393/kWh (regulating)
• Concepcion, Tarlac – ₱1.6767/kWh (contingency)
• Jasaan, Misamis Oriental – ₱1.4675/kWh (contingency)

Other approvals include:

• Giga Ace 4, Inc. – ₱0.3088/kWh (regulating), ₱1.4373/kWh (contingency)
• Masinloc Power Partners Co. Ltd. – ₱1.6830/kWh (contingency, coal-fired plant in Zambales)
• Ingrid Power Holdings, Inc. – ₱0.4875/kWh (contingency)
• Therma Marine, Inc. (Mobile 2) – ₱1.2097/kWh (dispatchable reserve)

The approvals did not receive unanimous backing. While ERC Chairperson Monalisa Dimalanta and Commissioners Catherine Maceda and Floresinda Baldo-Digal voted in favor, Commissioners Alexis Lumbatan and Marko Fuentes dissented.

The ERC emphasized that these ancillary services are critical as the country moves toward a renewable-powered future. Regulating reserves help maintain grid stability minute-by-minute, while contingency reserves act as fail-safe measures during unplanned outages or transmission failures.

“These agreements ensure that NGCP has the capacity to respond swiftly to any grid disturbances, thereby reducing the risk of blackouts and maintaining power quality within safe operating standards,” the Commission stated.

With the Philippines expanding its use of variable renewable sources like solar and wind, the importance of reliable ancillary services is growing. The ERC confirmed that all ASPAs will undergo regular monitoring to ensure compliance with technical standards. The costs of these services will be passed on to consumers through transmission charges, subject to regulatory oversight.