The study analyzes the root cause, and provides a timeline of the ongoing Mindanao power crisis. It looks into the Ancillary Services Procurement Agreement (ASPA) between the National Grid Corporation of the Philippines (NGCP) and the Therma Marine, Inc. (TMI) of the Aboitiz Group which was entered into last February 2010 and which lapsed in February 2012. The ASPA was contracted at the onset of the El Nino phenomenon in 2010 as the Agus and Pulangui plants operated at only 33% of their total capacity.
Non-renewal of the ASPA is a critical factor in the ongoing power crisis in Mindanao. The paper discusses the concept of ancillary service, and whether the NGCP is legally authorized to enter such service. It also presents solutions on how to ensure supply security for the Mindanao grid in the short-term.