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NATIONAL GRID CORPORATION OF THE PHILIPPINES

News Release

13 April 2012

For media inquiries, please contact:

Atty. Cynthia P. Alabanza, Spokesperson (cpalabanza@ngcp.ph/09175707884)

NGCP clarifies research on penetration limits of RE into the grid

System operator and transmission service provider National Grid Corporation of the Philippines

(NGCP) has rejected allegations that it is arbitrarily limiting the installation targets of renewable

energy (RE) resources to be connected to the grid.

NGCP and its partners from the State Grid Corporation of China (SGCC) and China Electric Power

Research Institute (CEPRI) conducted a technical analysis last year to study how to guard the gridagainst the effects of the unpredictable nature of intermittent RE.

NGCP clarified that the interim report presented to the Department of Energy last year was not a

final recommendation on the installation targets. Other considerations for setting the targets like

financial and rate impacts are already outside of NGCPs purview.

The studys technical considerations included the electric power system stability and actual available

ancillary service under present regulation. The final maximum integration capacity will still depend

on the actual available ancillary service.

The main objective of the research was to help ensure the reliability, quality and security of thepower network even with the entry of intermittent renewable energy sources and technologies into

the dispatch program of NGCP. We focused on the technical requirements for the levels of

intermittent capacities that can penetrate the power system at any given time, without

compromising the condition of the entire network, NGCP Spokesperson Atty. Cynthia P. Alabanza

said.

Alabanza reiterated that assumptions on the integration level are still dependent on the availability

and sufficiency of regulating reserves. The said capacities may be increased only if additional

regulating reserve will be made available.

Alabanza added that developing technical certification and considering the mandatory technicalrequirements are important to the development of RE. Renewable energy facilities should meet

certain technical requirements prior to their commissioning.

Renewable energy generating units are powered by location-specific energy sources which make the

availability of generated capacity inherently variable, erratic, and uncontrollable. Under RA 9513, the

following renewable energy sources are considered intermittent: wind, solar, run-of-river hydro, and

ocean energy. ###

National Grid Corporation of the Philippines (NGCP)Quezon Ave. cor. BIR Rd., Diliman, Quezon City, Philippines

Telephone +632 981-2143 / +632 981-2142 Fax +632 922-2684 E-mail corpcomm@ngcp.ph

Website: www.ngcp.ph Twitter: @NGCP_ALERT Facebook: www.facebook.com/1NGCP

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