Question & AnswerQ&A (ERC Resolution No. 09)
The main purpose of the resolution is to adopt the Grid Management Committee's recommendations classifying the Battery Energy Storage System (BESS) as a new source of Frequency Control Ancillary Services (FCAS) and to exempt it from the conduct of the System Impact Study (SIS) subject to certain conditions.
BESS is classified to provide two specific FCAS: (1) Contingency Reserve (Primary Reserve) and (2) Frequency Regulation (Secondary Reserve).
Frequency response is crucial because system frequency indicates the real-time balance between generation and load. Large frequency deviations can cause equipment damage and power system collapse. Fast and adequate frequency response helps maintain grid stability and reliability.
BESS is exempted from SIS because: (1) Power flow analysis issues can be managed by capacity allocation; (2) BESS produces direct current resulting in minimal risk of short circuits; and (3) BESS is static and used only for frequency regulation, thus it cannot cause grid instability.
No. The exemption from SIS is without prejudice to required performance tests by the National Grid Corporation of the Philippines (NGCP), which must certify the Ancillary Service provider as qualified.
The System Operator is responsible for maintaining balance between generation and load and is mandated by law to procure and arrange sufficient ancillary services to support grid operation.
Due to the intermittent nature of renewables, their variability can degrade system performance and increase the need for ancillary services like frequency control to maintain grid stability.
Paragraph 6.6.1.2 was clarified to refer to primary and secondary frequency regulating reserves. Paragraph 6.6.2.1 requires generating units providing primary response to operate in automatic frequency-sensitive mode. Paragraph 6.6.2.2 requires secondary response through Automatic Generation Control or manual dispatch by the System Operator.
The capacity of BESS installations must not exceed the required frequency regulating (secondary) reserve in the particular location.
The resolution took effect fifteen (15) days after its publication in a newspaper of general circulation. Copies were furnished to the University of the Philippines Law Center - Office of the National Administrative Register (UPLC-ONAR), the Department of Energy (DOE), National Transmission Corporation (TRANSCO), National Grid Corporation of the Philippines (NGCP), the Philippine Electricity Market Corporation (PEMC), and other concerned parties.