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

Representational image. Credit: Canva

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.

 

  • Related Posts

    CATL Partners With BME To Develop 1 GWh Battery Pack Facility In Egypt

    Contemporary Amperex Technology Co., Limited (CATL) has signed a cooperation agreement with Battery Manufacturing in Egypt (BME) to support localized battery pack manufacturing in Egypt. Under the partnership, BME will…

    Green Energy Stocks Show Mixed Trends As Indian Markets Remain Range-Bound On September 17

    Indian equity markets remained largely range-bound on September 17, 2026, with the benchmark indices showing limited movement. The S&P BSE Sensex closed at 74,314.59, declining marginally by 0.03%, while the…

    Have You Seen?

    Helix starts drilling Ollie well amid regulatory pause on Montana helium production

    • September 17, 2026
    Helix starts drilling Ollie well amid regulatory pause on Montana helium production

    Repairing Qatar LNG ‘to cost $5.8bn and take up to a year’

    • September 17, 2026
    Repairing Qatar LNG ‘to cost $5.8bn and take up to a year’

    CATL Partners With BME To Develop 1 GWh Battery Pack Facility In Egypt

    • September 17, 2026
    CATL Partners With BME To Develop 1 GWh Battery Pack Facility In Egypt

    Oil Prices Slide as Saudi Arabia Reroutes Crude via Oman

    • September 17, 2026
    Oil Prices Slide as Saudi Arabia Reroutes Crude via Oman

    Soaring LNG Prices Push Asian Demand Toward Second Annual Decline

    • September 17, 2026
    Soaring LNG Prices Push Asian Demand Toward Second Annual Decline

    India Pushes Back on U.S. Tariff Threat Over Russian Oil

    • September 17, 2026
    India Pushes Back on U.S. Tariff Threat Over Russian Oil

    Winter is Coming for Diesel

    • September 17, 2026
    Winter is Coming for Diesel

    Green Energy Stocks Show Mixed Trends As Indian Markets Remain Range-Bound On September 17

    • September 17, 2026
    Green Energy Stocks Show Mixed Trends As Indian Markets Remain Range-Bound On September 17

    Rift Helium reports $1.78m loss ahead of Tanzania helium drilling programme

    • September 17, 2026
    Rift Helium reports $1.78m loss ahead of Tanzania helium drilling programme

    Masdar Plans 350 MW Solar Expansion And 200 MWh BESS In Azerbaijan

    • September 17, 2026
    Masdar Plans 350 MW Solar Expansion And 200 MWh BESS In Azerbaijan