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Grid Code-Chapter10

This document outlines the transitory provisions for the Philippines' grid code. It establishes guidelines for transitioning the electric power industry to its reformed structure and roles. It defines the scope and objectives of the grid code, including ensuring reliable and affordable power supply. It describes the roles and responsibilities of the generation, transmission, distribution and supply sectors. It also covers the establishment of a wholesale electricity market and compliance requirements for existing and new industry participants during the transition period.

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Xavier Aldrin Abanilla Austria
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270 views36 pages

Grid Code-Chapter10

This document outlines the transitory provisions for the Philippines' grid code. It establishes guidelines for transitioning the electric power industry to its reformed structure and roles. It defines the scope and objectives of the grid code, including ensuring reliable and affordable power supply. It describes the roles and responsibilities of the generation, transmission, distribution and supply sectors. It also covers the establishment of a wholesale electricity market and compliance requirements for existing and new industry participants during the transition period.

Uploaded by

Xavier Aldrin Abanilla Austria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER 10

GRID CODE TRANSITORY PROVISIONS

10.1 PURPOSE AND SCOPE


10.1.1 PURPOSE
A. Guidelines for the transition of Electric power industry;
B. Establish procedures for the Grid Owner, System
Operator, and Distributors;
C. Establish procedures which in some cases may allow
permanent exemption from Grid Code requirements.

10.1 PURPOSE AND SCOPE


10.1.2 SCOPE OF APPLICATION
a. Grid Owner
b. System Operator
c. Market Operator
d. Generators
e. Distributors
f. Any entity with a User System connected to the Grid

10.2 MANDATES OF THE ACT


10.2.1 Objectives of the Electric Power Industry Reform
a. Ensure and accelerate the total electrification of the
country
b. Ensure the quality, reliability, security, and affordability of the
supply of electric power
c. Ensure transparent and reasonable prices of electricity

10.2 MANDATES OF THE ACT


d. Enhance the inflow of private capital and broaden the
ownership base of the power generation, transmission, and
distribution sectors
e. Ensure fair and non-discriminatory treatment of public
and private sector
f. Protect the public interest as it is affected by the rates
and services of electric utilities

10.2 MANDATES OF THE ACT


g. Assure socially and environmentally compatible
energy sources and infrastructure
h. Promote the utilization of indigenous and new and
renewable energy resources
i. Provide for an orderly and transparent privatization of
the assets and liabilities
j. Establish strong and purely independent regulatory
body
k. Encourage the efficient use of energy

10.2.2 STRUCTURE OF THE ELECTRIC


POWER INDUSTRY
Electric Power Industry is divided into four sectors
A. Generation Sector
B. Transmission Sector
C. Distribution Sector
D. Supply Sector

10.2.3 GENERATION SECTOR


10.2.3.1 Generation of electric power
10.2.3.2 Any Generation Company before it operates,
secure from the ERC a certificate of compliance pursuant to
the standards set forth in the act

10.2.3.3 Power generation shall not be considered a public


utility operation

10.2.3.4 Prices charged by a Generation company for the


supply of Electricity shall not be subject to regulation by ERC

10.2.4 TRANSMISSION SECTOR


10.2.4.1 TRANSCO shall have the authority and responsibility
for the planning, construction and centralized operation, and
maintenance of the high voltage transmission facilities,
including Grid interconnection and Ancillary services

10.2.4 TRANSMISSION SECTOR


10.2.4.2 Within 6 months from the effectivity of the Act all
other assets related to transmission operations, including the
nationwide franchise of NPC for the operation of the Grid shall
be transferred to the TRANSCO.

10.2.4 TRANSMISSION SECTOR


10.2.4.3 TRANSCO shall have the following functions and
responsibilities:
a. Act as the System Operator of the nationwide electrical
transmission and sub-transmission system
b. Provide open and non-discriminatory access to its
Transmission to all Grid users

10.2.4 TRANSMISSION SECTOR


c. Ensure and maintain the reliability, adequacy, security,
stability and integrity of the nationwide electrical Grid in
accordance with the performance standards for the operations
and maintenance of the Grid
d. Improve and expand its transmission facilities, consistent
with the Grid Code and Transmission Development Plan
(TDP)

10.2.4 TRANSMISSION SECTOR


e. Subject to technical constraints, TRANSCO shall provide
Central Dispatch of all generation facilities connected,directly
or indirectly to the Transmission system in accordance with
the dispatch schedule submitted by the Market Operator
f. TRANSCO shall undertake the preparation of the TDP

10.2.4 TRANSMISSION SECTOR


10.2.4.4 In preparation of the TDP, TRANSCO shall consult
the other participants of the electric power industry such as
the Generation Companies, Distribution Utilities, and
electricity End-Users.

10.2.4 TRANSMISSION SECTOR


10.2.4.5 Within 6 months from the effectivity of the Act, the
PSALM Corp. shall submit a plan for endorsement by the
Joint Congressional Power Commission and the approval of
the President of the Philippines, then the President shall
direct PSALM Corp. to award in open competitive bidding,
the transmission facilities, including Grid interconnections
and ancillary services to a qualified party either through an
outright sale or concession contract.

10.2.4 TRANSMISSION SECTOR


10.2.4.6 The buyer / concessionaire shall be responsible for
the improvement, expansion, operation, and maintenance of
the transmission assets and the operation of any related
business.

10.2.4 TRANSMISSION SECTOR


10.2.4.7 The awardee shall comply with the Grid Code and
TDP as approved. Such expertise must be with a
Transmission System of comparable capacity and coverage
as the Philippines.

DISTRIBUTION
SECTOR
A distribution utility has the obligation to provide
distribution services and connections to its system
for any end-user within its franchise area consistent
with the distribution code. They are required to
provide open and non-discriminatory access to its
distribution system to all users.

SUPPLY SECTOR
The ERC shall promulgate rules and regulations
prescribing the qualification of electricity suppliers,
which shall include among the other requirement, a
demonstration of their technical capability, and credit
worthiness.

SUPPLY SECTOR
The ERC shall have authority to require electricity
suppliers to furnish a bond or other evidence of the
ability of the supplier to withstand market
disturbances or other events that may increase the
cost providing service.

RETAIL COMPETITION AND OPEN


ACCES
It allows power suppliers to directly transact
business with any electricity end-user designated
by the ERC as a Contestable Customer(CC).
Meanwhile, Open access allow electricity endusers to freely choose their suppliers of electricity
whom they deem offer the power supply
arrangement with the most competitive price.

RETAIL COMPETITION AND OPEN


ACCES

RETAIL COMPETITION AND OPEN


ACCES

GRID ASSET BOUNDARIES


The National Transmission System
Disposal of Sub-transmission Functions, Assets, and
Liabilities

TRANSMISSION
RELIABILITY
Submission of Normalized reliability Data
Initial Reliability targets

SCHEDULING AND
DISPATCH

Market transition

DOE SHALL ESTABLISH A WHOLESALE


ELECTRICITY SPOT MARKET WITHIN ONE
YEAR FROM EFFECTIITY OF THE ACT

MEMBERSHIP OF WESM

GENERATING COMPANIES
DISTRIBUTION UTILITIES
SUPPLIERS
BULK CONSUMERS / END USERS
OTHER SIMILAR ENTITIES (AUTHORIZED BY ERC)

MARKET RULES
ERC approves the price determination methodology
Rules must provide a level playing field to all power
industry participants
Establishing a merit order dispatch instruction
Determining market clearing price for each time period
Administering the market
Prescribing guidelines for market operation in system
emergencies
Amending the market rules

MARKET RULES
All members, whether direct or indirect, shall be bound by
the market rules with respect to the transactions in the
spot market
The grid code shall be used together with the market
rules

MARKET OPERATOR
Autonomous group constituted by DOE
With equitable representation from electric power industry
participants
Undertake preparatory work and initial operation of WESM
Not later than 1 year after the implementation of WESM, an
independent entity shall be formed

EXISTING CONTRACTS
Effectivity of Contract
All existing contracts are effective unless revoked or a new
contract is entered into pursuant to the provisions of the Grid
Code

New and Amended contracts


The Grid owner and System Operator shall negotiate , which
shall conform to the provisions of the Grid Code

TRANSITIONAL COMPLIANCE
Statement of Compliance
Within six months from effectivity of the Grid Code
Technical specification and performance standards prescribed in the Grid
Code and Distribution Code

Submission of Compliance Plan


Distributors, System Operator and Distributors will submit to ERC

Failure to submit plan


Fines, penalties and appropriate sanctions

Evaluation and Approval of plans


Within sixty days upon receipt of plan

CONNECTION REQUIREMENTS FOR NEW AND RENEWABLE


ENERGY SOURCES

The connection requirements for Generating Plants


that utilize non-conventional equipment for new
and renewable energy resource, whose aggregate
capacity at the connection point exceeds 20MW,
shall be prescribed by the ERC after due notice
and hearing

EXEMPTIONS FOR SPECIFIC EXISTING EQUIPMENT


Request for Permanent exemptions
Shall be submitted to the Grid Owner and System Operator on
a case-by-case basis

Approval of Exemption
Only for cases where the reliability of the Grid will not be
compromised

END OF DISCUSSION

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