Bigger Leyte power auction eyed

by Alena Mae S. Flores – January 13, 2016 at 11:25 pm

from Manila Standard

Power Sector Assets and Liabilities Management Corp. is seeking approval from the Energy Department to auction the contract to manage the remaining 40-megawatt capacity of the Unified Leyte geothermal power plants.

PSALM president Lourdes Alzona told reporters at the sidelines of a conference the agency was seeking guidance from the department on the inclusion of 40 MW of so-called security capacity to the bidding of the 160-MW bulk energy of the Unified Leyte power project.

“For 2016, we target to privatize that subject to further policy direction of DoE. Because in our proposal to the board, we will include the remaining 40 MW, so it will be the bulk plus the 40-MW security asset,” Alzona said.

The official said the bulk energy auction was scheduled for negotiated bidding in the first semester this year while the balance of 40 MW would need approval of the department.

“We have decided to sell the security assets because there will be a security requirement in Luzon because in the Visayas we don’t see any need any more,” she said.

PSALM has already privatized the 200-MW strips of energy contracts of the Unified Leyte power plant.

PSALM earlier bid out the bulk energy contract where only one made an offer.

PSALM received the go-signal to conduct a negotiated bidding with lone bidder Unified Leyte Geothermal Energy Inc., a unit of Energy Development Corp.

Unified Leyte Geothermal offered a bid of P215 bid million in November 2013 during the first auction.

The company, however, decided to withdraw from the privatization, citing the damage suffered by the plants from typhoon Yolanda in 2013. Unified Leyte Geothermal’s withdrawal promptedPSALM to rebid the bulk energy contract this year.

PSALM has already awarded 200 MW of total capacity from strips of energy from the Unified Leyte geothermal plant to the winning bidders.

The Unified Leyte Geothermal Power Plant is composed of the 125-MW Upper Mahiao, 232.5-MW Malitbog, and 180-MW Mahanagdong power plants, and the 51-MW optimization stations.

The power plant is covered by power purchase agreements between state-owned National Power Corp. and EDC of the Lopez Group.