More service contracts for renewable energy due for award this week

Posted on August 31, 2015

NEW RENEWABLE energy (RE) service contracts are expected to be awarded to developers this week, an official from the Energy department said, noting this will mark the conclusion of the second round of open and competitive selection process (OCSP 2).

Mario C. Marasigan, director of the agency’s Renewable Energy Management Bureau, said the last leg of applications evaluation is due tomorrow.

“We will have another deliberation on Tuesday since we got a lot of bids,” Mr. Marasigan said in a text message when asked on the status of the ongoing evaluation.

“Sept. 4 is still our target awarding date,” he added.

The opening of proposals for the new RE contracts was held in May.

Under the OCSP 2, the Energy department offered 21 RE sites for development and utilization.

This auction round covers four geothermal sites with aggregate potential capacity of up to 134 megawatts (MW) and 17 hydropower sites with aggregate potential capacity of up to 733.4 MW.

A total of eight offers for four geothermal concession areas, and 31 offers for 14 hydropower prospects were received.

For geothermal, Repower Energy Development Corp.; Cabalian Bay Company, Inc.; and Aboitiz Renewables, Inc. submitted offers for area 2, which covers the Southern Leyte geothermal prospect.

For area 3 -- covering the Amacan geothermal prospect in Compostela Valley -- APC Energy Resources, Inc.; Emerging Power, Inc.; Energy Development Corp.; Biliran Geothermal, Inc.; and Repower participated.

Meanwhile, the hydropower sites offered in the auction are spread across the country: six in Luzon, eight in the Visayas, and three in Mindanao.

Area 1 (Madongan hydro project) attracted offers from Pachydro Energy, Inc.; Clean N Green Energy Solutions; FGS Renewable Energy, Inc.; and Alternergy Hydro Partners Corp.

FGS and Alternergy also submitted offers for areas 2 and 3, covering the Madongan 2 and Solsona hydropower projects.

Area 4 -- which covers the Binongan-Tineg hydro project -- got offers from FGS and First Gen Mindanao Hydro Power Corp.

FGS, Trans-Asia Oil and Energy Development Corp., and Almana Power Corp. submitted bids for area 7 or the Ilog hydropower project.

Almana and Southeast Asia Mining and Power Corp., meanwhile, were named as the bidders for area 8 or the Binalbagan 1 hydro project.

Almana was also the sole bidder for areas 9 and 10 known as the Binalbagan 2 and Binulug hydropower projects.

Five companies -- FGS; Almana; Vivant Energy Corp.; Iraya Energy Corp.; and Renagmec Power Corp. -- participated for area 12 or Tubig hydropower project.

Vivant, FGS and Almana also submitted proposals for area 13 covering the Buhid hydro project.

Clean N Green was the sole interested bidder for area 14 (Bugtong Falls hydro project); while First Gen Mindanao submitted the only offer for area 15 (Cateel River hydro project.)

Southeast Asia Mining; Markham Resources Corp.; and First Gen Mindanao vied for area 16 or the Cagayan 1 hydro project.

Maranao Energy Corp. submitted the only proposal for area 17 covering the Agus 3 hydropower project.

There were no offers for two geothermal areas and three hydropower prospects

Mr. Marasigan said then these areas will be “open for direct negotiations.”

The contracts to be awarded will provide for pre-development stage of two years for projects involving less than 50 MW and five years for those involving at least 50 MW.

The development stage will run for 25 years from effectivity of the contract, renewable for up to 25 more years.

The first round of OCSP was conducted by the Energy department in 2009, where it awarded eight geothermal service contracts.

Data from the Energy department showed that as of end-June, the government had awarded 679 RE contracts since the enactment of Republic Act No. 9513, or the RE Act of 2008.

Projects with capacity totaling 3,902.30 MW are operational, while 12,407.94 MW are in various stages of development.

The government has been pushing development of indigenous sources of energy in a bid to reduce dependence on imported oil.

The department is also in the process of auctioning off petroleum areas under the fifth leg of the Philippine Energy Contracting Round (PECR 5). Launched in May last year, the PECR 5 involves 26 resource areas -- 11 petroleum and 15 coal. -- Claire-Ann Marie C. Feliciano