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

    Kampong Chhnang National Solar Park Sets Benchmark For Cambodia’s Clean Energy Transition

    The National Solar Park in Kampong Chhnang has become a major milestone in Cambodia’s renewable energy journey. The project is a joint effort between Electricité du Cambodge (EDC), the Asian…

    Global Cleantech Expo-Odisha Highlights India’s Renewable Energy Growth and MSME-Led Clean Tech Innovation

    The inaugural edition of the Global Cleantech Expo-Odisha kicked off today at the IDCO Exhibition Ground, marking a significant milestone in India’s journey towards its Net Zero vision. The two-day…

    Have You Seen?

    ConocoPhillips Considers Selling Permian Assets Worth $2 Billion, Bloomberg News Reports

    • February 21, 2026
    ConocoPhillips Considers Selling Permian Assets Worth $2 Billion, Bloomberg News Reports

    US Drillers Keep Oil and Natgas Rig Count Unchanged for Second Week in a Row, Says Baker Hughes

    • February 21, 2026
    US Drillers Keep Oil and Natgas Rig Count Unchanged for Second Week in a Row, Says Baker Hughes

    US Lawmakers Plan Iran War Powers Vote as Trump Weighs Strikes

    • February 21, 2026
    US Lawmakers Plan Iran War Powers Vote as Trump Weighs Strikes

    China Hikes Russian Crude Imports as India Retreats

    • February 20, 2026
    China Hikes Russian Crude Imports as India Retreats

    Supreme Court Rules That Trump’s Sweeping Emergency Tariffs Are Illegal

    • February 20, 2026
    Supreme Court Rules That Trump’s Sweeping Emergency Tariffs Are Illegal

    US Negotiating With India on Venezuelan Oil Sale, US Envoy Says

    • February 20, 2026
    US Negotiating With India on Venezuelan Oil Sale, US Envoy Says

    Energy Transfer Terminates Offtake Agreements with Some Customers of Suspended Lake Charles LNG Project

    • February 20, 2026
    Energy Transfer Terminates Offtake Agreements with Some Customers of Suspended Lake Charles LNG Project

    Hungary Taps Strategic Oil Reserves After Druzhba Pipeline Halt

    • February 20, 2026
    Hungary Taps Strategic Oil Reserves After Druzhba Pipeline Halt

    AI Boom Faces Power Crisis Without Global Renewable Surge

    • February 20, 2026
    AI Boom Faces Power Crisis Without Global Renewable Surge

    Tullow Oil Strikes Major Refinancing Deal with Glencore

    • February 20, 2026
    Tullow Oil Strikes Major Refinancing Deal with Glencore