ERC on Battery Energy Storage System

The resolution anchors grid stability on maintaining the balance between generation and load at all times.
The resolution recognizes the System Operator (SO) as responsible for procuring and arranging ancillary services sufficient to support grid operation.
The resolution treats system frequency as the fundamental indicator of real-time grid condition and links frequency deviations to risks of equipment damage and power system collapse.
The resolution requires correcting small, manageable frequency deviations at the earliest opportunity through appropriate reserves.
The resolution recognizes that integrating renewable energy resources (notably wind and solar) can increase variability and thereby require increased ancillary services.
The resolution determines that BESS is a technology that can provide Frequency Control Ancillary Services (FCAS), particularly Contingency Reserve (Primary Reserve) and Frequency Regulation (Secondary Reserve).

The ERC adopts the Grid Management Committee’s recommendation classifying BESS as a new source of Frequency Control Ancillary Services (FCAS).
The classification covers Contingency Reserve (primary reserve).
The classification also covers Frequency Regulation (secondary reserve).
The resolution ties FCAS to system operation needs by requiring precise control of system frequency through operational reserves responsive to disturbances.
The resolution recognizes that FCAS are characterized differently in different electricity industry arrangements depending on the type of events, response timeframe, activation manner, and whether they raise or lower frequency.

The ERC exempts BESS from the conduct of the System Impact Study (SIS).
The exemption is subject to recommended siting and capacities for the Luzon, Visayas, and Mindanao grids.
The exemption is further conditioned that the capacity of the BESS shall not exceed the required frequency regulating (secondary) reserve in a particular location.
The resolution states that the BESS SIS exemption is without prejudice to required performance tests to be conducted by the NGCP.
The resolution requires NGCP to certify the AS provider as qualified through the performance tests.

The ERC clarifies paragraphs 6.6.1.2 of the PGC Amendment No. 1 to be interpreted in relation to or within the context of paragraphs 6.6.2.1 and 6.6.2.2.
The clarified provision states that 6.6.1.2 provides that the Frequency Regulating (or Load following) Reserve includes:
- (a) Primary Response of Generating Units, and
- (b) Secondary Response of Generating Units.
The clarified provision states that 6.6.2.1 requires a generating unit providing Primary Response for frequency regulation as an ancillary service to operate in an automatic Frequency-sensitive mode (also known as free-governor mode) for automatic response of output to changes in frequency.
The clarified provision states that 6.6.2.2 requires Secondary Response from selected generating units providing ancillary services for frequency regulation, with frequency control accomplished through Automatic Generation Control or manual adjustment using Specific Dispatch Instruction from the System Operator.

The resolution takes effect fifteen (15) days after its publication in a newspaper of general circulation.
The resolution orders furnishing of copies to UPLC-ONAR, DOE, TRANSCO, NGCP, PEMC, and all other parties concerned.
The resolution is adopted and ordered for implementation by the ERC Chair and Commissioners whose signatures appear in the resolution.