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 grid against 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 the power 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 technical requirements 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. ###
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