The standby power is known as ancillary services, which the NGCP must enter into contracts for so they can be tapped when needed.
The Luzon grid was placed on red alert last month, signifying a deterioration in the supply-demand balance that requires power rationing, which is carried out via rotating brownouts. Given the Philippines’ vulnerability to natural calamities, Mr. Gatchalian said an uninterrupted power supply is critical to support infrastructure and services used in the recovery and rehabilitation effort.
The NGCP and its regulator have been in dispute about the appropriate level of ancillary service contracts to enter into. The grid operator incurs costs for the right to have ancillary power on standby.
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