A BRIEF ON THE BLACKOUT
THE LUZON BLACKOUT – WHAT HAPPENED; WHO
IS TO BLAME?
Early this week, Luzon was hit by a
blackout after major power plants in Luzon, like falling dominoes, went into
unscheduled shut downs – one after the other.
Over 80% of Luzon Island lost power. At
least five (5) base load plants shut down with over 3,800 MW sucked out of the
grid.
As expected, the entities most
responsible for electricity supply were the first to deny knowledge of what
happened. And disclaim responsibility.
Who must answer for that disaster? Will
the snafu happen again, and how soon?
Why did the blackout happen?
The short and simple answer: there were
no reserves to protect the stability of the system from unplanned generation
plant outages.
When Calaca 1 and 2 shut down, there was
no contingency reserve to cover the tripping generation unit, there was no
dispatchable reserve to cover the cascade of other tripping plants, and
apparently, there was not even a frequency regulating reserve.
Reserves are crucial to the stability of
the system. When a base load plant trips and there is no reserve to replace it,
the system becomes unstable and the other plants will automatically trip and
disconnect from the grid to protect itself from the instability in the system.
In a TV interview right after the
blackout, an NGCP spokesperson candidly admitted that they did not know what
happened and they were still trying to trace the cause. She could only go as
far as to confirm that the first plant to trip was Calaca 1, followed by Calaca
2, and the rest of the other base load plants followed in the cascade of shut
downs that resulted in the grid blackout.
If NGCP had the 674MW contingency
reserve and the 674MW dispatchable reserve, that reserve would have been more
than sufficient to cover Calaca 1 & 2, the system would have remained
stable, the other plants would not have tripped and there would have been no
blackout.
Why do we highlight the role of NGCP in
the blackout?
It is the mandate and responsibility of NGCP
to provide and procure the different levels of reserves that will secure and
keep the system stable. This is called ancillary services. If NGCP did its job
under its high voltage transmission franchise, the blackout would not have
happened.
The ERC, on the other hand, has
regulatory review and approval of the rates to be collected for ancillary
services. The DOE reviews and approves the transmission development plans, (which
includes provisions for reserves and ancillary services) for consistency and
compliance with the national power development plans. In other words, in cases
where no real reserves are provided for by NGCP, DOE should already flag this.
WESM is the price clearing and settlement
platform for those reserves.
The NGCP website, citing the Electric
Power Industry Reform Act (EPIRA), says it (NGCP) “assumes NPC’s authority and
responsibility for planning, construction and centralized operations and
maintenance of the high voltage transmission facilities, including grid
interconnections and ancillary
services.”
Ancillary
services, according to NGCP, are “support services necessary to sustain the
transmission capacity and energy that are essential in maintaining the power
quality, reliability and security of the grid.”
The same provisions and undertakings are
restated in the franchise of NGCP, constituting in essence its obligations to
the consumers for the privilege to supply high-voltage transmission services on
a monopoly basis.
After the Luzon-wide blackout, the
question arises: is NGCP faithfully and truthfully discharging its mandate
under EPIRA and its franchise? Would the blackout have happened if NGCP did its
job? Does NGCP have the reserves?
NGCP won the Transco concession in
January 2008 and Congress passed RA 9611, its legislative franchise, in
December of the same year.
According to the NGCP website, ancillary
services include the Frequency Regulating Reserve (FRR), a generating capacity
necessary to automatically adjust the system in case of load fluctuation; the
Contingency Reserve (CR) or Spinning Reserve to respond in case of a generating
unit tripping; Dispatchable Reserve (DR) or Backup Power Service to replace the
contingency reserve and to be synchronized in 15 minutes; Reactive Power
Reserve and Black Start Service.
The Regulating Reserve should be
equivalent to 4% of the total system load or about 352MW, the Contingency
Reserve equal to the biggest plant, and the Dispatchable Reserve to the next
biggest plant. That would be about 647MW CR, and another 647MW DR, more or less
the size of the Sual Power Plant.
EPIRA allows NGCP to charge and collect
payments for these ancillary services, and this was highlighted in November
last year when MERALCO claimed that its rates were going up because NGCP was
charging them more for ancillary services.
Based on recent ERC orders, NGCP’s
transmission charge for 2013 is P0.67475 pkwh; for 2012 it was P0.68450 pkwh.
It was given by ERC a Maximum Annual Revenue of P44.567 Billion for 2013; P42.903
Billion for 2012, which are the basis of the average rate it collects.
Earlier, NGCP tried to distance itself
from issues on ancillary services, insisting that it does not form part of its
approved transmission rate. While it is NGCP who bills and collects ancillary
services from end-users, as provisionally approved by ERC, it remits the
collection for ancillary services directly and entirely to the generators from
which the ancillary services are taken, the company said in a statement to a
major network.
A check on the company’s postings showed
that in Luzon, a generator it has contracted with is Trans Asia Oil &
Energy Dev. Corp., which belongs to the Phinma Group.
After the Luzon black out, shouldn’t we
ask Trans Asia Oil why there was no generation capacity to replace Calaca 1
& 2.
303030
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