Briefing on For Potential AS

Providers
Ancillary Services
SYSTEM REQUIREMENTS
Generators provide these services to the grid customers

Unscheduled Available Capacity Back-up energy supply

Ancillary Service Capacity • Stabilize system frequency

• Maintain voltage levels
• Recover from blackout

Energy Supply
Serve the energy demand
of consumers
 Ancillary Services
Ancillary Services are support services necessary to sustain the
transmission capacity and energy that are essential in maintaining
the power quality, reliability, and security of the grid.

Primary function is to maintain the load-generation balance of the

system.

Ancillary Services is being provided by qualified generating plants

and procured, managed by the System Operator.
Types of Ancillary Services
Regulating Reserve
Generating capacity needed to balance the
supply (generation) and load in real time
(seconds to minutes) due to fluctuations of Reactive Support
either load (switching on/off) or generation
(ramping up/down) Ensures Power Quality and Stability
of the Grid.
Contingency Reserve
Insurance Generating capacity necessary to
adjust automatically in response to sudden Black Start Service
reduction of generation output or tripping of
Ensures that the grid can be
generating unit
revived immediately following a
collapse
Dispatchable Reserve
Insurance Generating capacity necessary to
replenish the Contingency Reserve.
Functions of Regulating Reserve
Provides generating capacity necessary to adjust total system
generation over short periods of time to match system load changes

Address temporary variation in load and unintended fluctuation in

generation

Control the frequency within the limits of 59.7Hz to 60.3Hz as per PGC

Generating plant capacity scheduled as RR must be dedicated to the

grid RR service during its designated period.

Total RR capacity per grid shall be 4% of the hourly system demand.

 Generator
response to
grid frequency
MW

110
120
125
130
135
145

115
140

2:57:32 PM
2:58:48 PM
3:00:04 PM
3:01:20 PM
3:02:36 PM
3:03:52 PM
3:05:08 PM
3:06:24 PM
3:07:40 PM
3:08:56 PM
3:10:12 PM
3:11:28 PM
3:12:44 PM
3:14:00 PM
3:15:16 PM
3:16:32 PM
3:17:48 PM
3:19:04 PM
3:20:20 PM
Time
3:21:36 PM
3:22:52 PM
3:24:08 PM
3:25:24 PM
3:26:40 PM
3:27:56 PM
3:29:12 PM
3:30:28 PM
3:31:44 PM
3:33:00 PM
3:34:16 PM
3:35:32 PM
3:36:48 PM
3:38:04 PM
3:39:20 PM
3:40:36 PM
3:41:52 PM
59.65
59.75
59.80
59.90
60.00
60.05
60.15
60.25
60.30
60.35
60.40

59.70
59.85
59.95
60.10
60.20

frequency
Illustration of Regulating Reserve Response

Grid frequency

The generator providing RR mirrors the change in grid frequency, in order to maintain the frequency as close to 60Hz as possible.
 Technical Requirements for Regulating Reserve
operate in an automatic frequency sensitive mode or Free Governor Mode with
Primary Response RR deadband of +/-0.15Hz with maximum response time of 5 seconds and sustainable for
25 seconds

Secondary Response operate in an Automatic Generation Control (AGC) of the SCADA/EMS of the National
Control Center or manual adjustment of load with specific instructions from the SO.
RR Maximum response time is 25 seconds and sustainable for 30 minutes

Speed governing
Generating units shall be fitted with a fast-acting speed-governing system to provide
system frequency control under normal operating conditions.
• overall speed-droop characteristic of 5% or better. 5% speed-droop for thermal plants; 3% speed-droop for hydro.
• a ramp rate of at least 5MW/minute.
• capable of accepting raise and lower signals from its AGC.

Pmin
Pmin of the generating unit shall not be part of the RR capacity.
Generating unit must already be spinning/synchronized to the grid at the start of its RR schedule.
Functions of Contingency Reserve
Provides generating capacity necessary to respond to infrequent, but
usually large, failures of generating units and/or transmission tie lines.

Generating unit shall also ensure that the rate of occurrence of

frequency fluctuation does not exceed the level set out in the PGC.

No generating unit shall be assigned a CR level greater than 20% of the

total required CR for any particular hour to avoid a single point of
failure.

Total CR capacity per grid shall be equivalent to the largest generating unit
online, which includes its scheduled capacity for energy supply plus its
scheduled capacity for AS, if any. This is computed on an hourly basis.
 Illustration of Contingency Reserve Response
DEMAND GENERATION DEMAND GENERATION DEMAND GENERATION

CR

CR DR CR DR DR

BALANCED FREQUENCY = 60Hz LOSS OF GENERATION RESULTS IN CONTINGENCY RESERVE TEMPORARILY

SUDDEN CHANGE IN FREQUENCY REPLACES THE LOST GENERATION TO
FREQUENCY < 60Hz ADJUST FREQUENCY TO 60Hz
FREQUENCY = 60Hz
Technical Requirements for Contingency Reserve
Primary Response operate in an automatic frequency sensitive mode or Free Governor
CR Mode with deadband setting between -0.15Hz and -0.30Hz
• In consideration to the eventual transition to the new AS types as per 2016 PGC, Primary Response CR is the
preferred mode of operation

Secondary
Response CR
• Operate in an Automatic Generation Control (AGC) of the SCADA/EMS of the National Control Center or
manual adjustment of load with specific instructions from the SO

Pmin
Pmin of the generating unit shall not be part of the CR capacity.
• Generating unit must already be spinning/synchronized to the grid at the start of its CR schedule.
Dispatchable Reserve
Generating units that have fast start capability which can synchronize
within 15 minutes upon dispatch instruction of SO, and can sustain its
output for a minimum period of 8 hours.

Replenishes the Contingency Reserve.

A generating unit that is already scheduled for DR cannot be

scheduled for RR or CR on the same interval.

The generating unit scheduled for DR shall be on shutdown, and shall only
synchronize to the grid upon dispatch instruction.
Illustration of Dispatchable Reserve Response
DEMAND GENERATION DEMAND GENERATION

CR DR

DR CR

DISPATCHABLE RESERVE REPLENISHES THE CONTINGENCY RESERVE,

SO THAT WHEN THERE IS ANOTHER SUDDEN LOSS OF GENERATION,
THE CONTINGENCY RESERVE WILL BE AVAILABLE AGAIN.
BALANCED FREQUENCY = 60Hz
 VOLTAGE LEVEL REQUIRED BY PGC

Emergency Normal Emergency

Alert level Alert level
level level
(0.90 – (0.95-1.05 (1.05-1.10
(below (above
0.95 p.u.) p.u.) p.u.)
0.90 p.u.) 1.10 p.u.)

UNDERVOLTAGE OVERVOLTAGE
230 kV
Below 207kV 207kV – 218.5kV 241.5kV – 253kV Above 253kV
(218.5kV – 241.5kV)
Reactive Power for Voltage Control
Low voltage may result to
tripping of generators,
High demand results to low Extremely low demand, on the
overheating of motors and poor
voltage on the load side due to other hand, results to
performance of electrical
an increase in current flow. overvoltage
equipment (e.g. flickering or
dimming of light bulbs)

Overvoltage may result to low

power factor, insultation failure Sources of reactive power
Reactive Power adjusts voltage
of electrical equipment and include: generators, capacitors,
levels to within +/-5% of the
transmission lines and reactors/inductors,
nominal voltage
automatic tripping of synchronous condensers
transmission equipment
 RPS ADJUSTS VOLTAGE

Emergency Normal Emergency

Alert level Alert level
level level
(0.90 – (0.95-1.05 (1.05-1.10
(below (above
0.95 p.u.) p.u.) p.u.)
0.90 p.u.) 1.10 p.u.)

Generator provides kVAR Generator absorbs kVAR

230 kV
Below 207kV 207kV – 218.5kV 241.5kV – 253kV Above 253kV
(218.5kV – 241.5kV)
Reactive Power Support
The capability of a generating unit to supply reactive power to, or absorb
reactive power from, the transmission network in order to maintain the bus
voltage within 5% of its nominal voltage.

Generating unit must operate beyond the range of 0.85 lagging power factor or
0.90 leading power factor, but within the unit’s capability curve.

In order to optimize the available ancillary services, NGCP now allows the CR
and DR providers to also provide RPS at the same time.
CAPABILITY CURVE
Black Start Service
The BSS providers should be able to energize a section of the network without the
use of external power sources, allowing further connection of transmission circuit,
and demand to be progressively connected, until the network is re-integrated.

BSS providers must be put on-line and ready to extend power within 30 minutes
upon receipt of dispatch instruction, and can sustain the operation for at least 12
hours.

BSS may be offered as available along with other AS types, since all other AS will be
canceled when a system black out occurs. Thus, during restoration, only BSS is
operating.
AS Nomination, Scheduling and Dispatch

AS capacity (for RR, CR, and DR) and AS availability (for RPS
and BSS) shall be nominated day-ahead by the AS Provider

Upon receipt of nominations, NGCP will finalize the schedule

and provide the Day-Ahead AS Schedule of each AS Provider

AS Provider will make its scheduled capacity available and

ready for dispatch on the day it is scheduled
Ancillary Service Contracting
Required AS Levels
AS Type Requirement
Regulating Reserve 4% of the hourly system demand
Contingency Reserve1 the most heavily loaded generating unit on-
line and its scheduled reserve
Dispatchable Reserve the second most heavily loaded generating
unit on-line and its scheduled reserve
Reactive Power Support dependent on system voltage condition
Black Start Service one black start plant per restoration
highway
1theCR capacity that can be scheduled from a single AS provider is up to a
maximum of 20% of the required CR level to avoid a single point of failure.
 Considering the current Firm AS levels per AS type, per Grid, NGCP can still
accommodate the following Firm AS capacities (in MW):

Luzon Visayas Mindanao

Peak Off-peak Peak Off-peak Peak Off-peak

Regulating Reserve 160 - 200 90 - 150 60 - 80 46 - 60 40-70 40

Contingency Reserve 500 - 580 340 - 420 30 - 60 30 - 90 120-150 100-140

Dispatchable Reserve 400 - 480 400 – 460 40-80 40-80 90-140 90-140
Notes:
1. Maximum allocation per plant will be set at 20% of the grid requirement.
2. Offers may vary for every hour, and every month of the year, depending on the power
plant’s operations.
3. Gencos with existing Non-firm AS contracts may re-negotiate for Firm AS contract.
 Ancillary Services Rates for Firm Capacity
AS Type Firm AS Capacity Payment
Rate
Regulating Reserve PhP 2.25/kW/hr
Contingency Reserve PhP 1.50/kW/hr
Dispatchable reserve PhP 0.85/kW/hr

The abovesaid rates are for the Capacity Payment (CP) of the Firm Capacity, which is in essence the “reservation
fee” for the generating unit as it will be dedicated for Ancillary Service once scheduled, and can no longer be
traded for energy supply. The formula shall be:
CP = Undispatched Scheduled Capacity x Firm AS Capacity Payment Rate

There is an additional payment for Incidental Energy (IE) which will cover the cost of Variable O&M and actual
fuel consumed for the dispatch of Ancillary Service (“G”). Any energy revenue from the WESM will be deducted in
order to avoid double compensation. The formula shall be:
IE = [G x (Firm AS Capacity Payment Rate+VOM+Actual Fuel Cost)] – WESM Revenue
 Ancillary Services Rates for RPS
Incidental kVARh Rate: Php 4.00 / kVARh

Total Payment = kVAR Payment + Energy Payment

kVAR Payment = Incidental kVARh Rate x Compensable kVARh

Compensable kVARh = Actual kVARh – Base kVARh

Where:

Actual kVARh = actual reactive power provided within each interval

Base kVARh = corresponding kVARh at 0.85 power factor lagging or 0.9 power factor leading, for the unit’s MW
loading. For clarity, the MW loading is the unit’s Pmin, or RTD schedule, whichever is greater.

Energy Payment

IERPS = [G x (VOM+Actual Fuel Cost)] – WESM Revenue

Ancillary Services Rates for BSS
BSS Payment = Actual operating cost during provision of black start service

This may include fuel cost and O&M costs

Ancillary Services Payment
Cost of Pmin for RR, CR and RPS
shall not be part of the AS
payment, and should be
recovered from the WESM or
through bilateral contracts with
load customers.
Cost of start-up or shutdown
outside the scheduled intervals
shall not be part of the AS
payment. It is the obligation of
the AS provider to ensure it is
synchronized at the start of its
scheduled interval when
providing RR, CR or RPS.
The maximum AS capacity and
energy dispatch must not exceed
the scheduled AS capacity. Any
excess shall not be part of the AS
payment. It is the obligation of
the AS provider to ensure that it
provides only up to its maximum
scheduled capacity.

AS provider must limit its AS

provision within its scheduled
Payment shall be based on the
intervals. Capacity and energy
approval of the Energy
provided outside the scheduled
Regulatory Commission.
intervals shall not be paid under
AS.
 Send your email to Ms.
For further inquiries Lisaflor Bacani-Kater at
lgbacani@ngcp.ph