Title
ERC on Battery Energy Storage System
Law
Erc No. 09
Decision Date
May 18, 2015
The ERC classifies Battery Energy Storage Systems (BESS) as a new source of Frequency Control Ancillary Services, exempting them from System Impact Studies to enhance grid stability and efficiency across Luzon, Visayas, and Mindanao.

Questions (ERC Resolution No. 09)

It adopts the Grid Management Committee’s recommendations classifying BESS as a new source of Frequency Control Ancillary Services (FCAS), specifically Contingency Reserve (primary reserve) and Frequency Regulation (secondary reserve).

Contingency Reserve (primary reserve) and Frequency Regulation (secondary reserve).

Because stable and reliable grid operation requires continuous balancing of generation and load; the System Operator must procure and arrange ancillary services sufficient for this purpose.

Frequency drops when load exceeds generation and rises when generation exceeds load; large deviations can damage equipment or cause collapse.

To avoid large frequency deviations that may cause equipment damage or grid collapse; and to correct smaller deviations early, requiring reserves suitable for various contingencies and fast response.

It states that intermittent renewable generation can degrade system performance by increasing output variability, which in turn requires an increase in ancillary services.

FCAS are services required by the System Operator to ensure supply-demand balancing by precise control of system frequency through operational reserves; they are characterized by timeframe of response, activation manner, and whether they raise or lower frequency.

It exempted BESS from the conduct of the System Impact Study (SIS), subject to recommended siting and capacity for Luzon, Visayas, and Mindanao grids.

BESS capacity shall not exceed the required frequency regulating (secondary) reserve in a particular location.

No. The exemption is ‘without prejudice’ to required performance tests to be conducted by NGCP, which shall certify the ancillary service provider as qualified.

SIS determines whether a new element connected to the grid could cause impact or degradation of performance. The GMC justified that power flow limits can be handled by allocating transmission line capacity; BESS involves DC flow with slim/negligible short-circuit impact; and BESS is static and used only for frequency regulation, so it cannot cause instability.

By allocating the capacity that can be accommodated by the transmission line, since power flow analysis can ensure thermal limits are not breached.

It clarified that paragraph 6.6.1.2 of the PGC Amendment No. 1 must be interpreted in relation to (or within the context of) paragraphs 6.6.2.1 and 6.6.2.2.

To avoid confusion and ensure correct interpretation of how ‘Frequency Regulating (or Load following) Reserve’ includes primary response and secondary response within the definitions provided.

Primary response involves automatic frequency-sensitive operation (free-governor mode) for automatic output response to frequency changes. Secondary response is required from selected units using Automatic Generation Control or manual adjustment with specific dispatch instructions.

It states that firm contracted capacity for contingency reserve in Luzon is 340MW, while the rest of requirements are contracted on a non-firm basis.

Because BESS as an additional frequency ancillary service resource would add electricity that would otherwise come from non-firm ancillary service providers, increasing available supply and supporting competitiveness.

It takes effect fifteen (15) days after its publication in a newspaper of general circulation.

UP Law Center–Office of the National Administrative Register (UPLC-ONAR), Department of Energy (DOE), National Transmission Corporation (TRANSCO), NGCP, Philippine Electricity Market Corporation (PEMC), and all other parties concerned.


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