MANILA, PHILIPPINES—The United Leyte Geothermal Power Plants is soon to fall under ownership of whoever wins the bidding for the Independent Power Producer Administrators (IPPAs).
The Power Sector Assets and Liabilities Management Corporation (PSALM) has now started the said selection process.
“At stake are rights to the “bulk energy” or smaller-sized output referred to as “strips of energy,” for which any qualified company can bid,” said PSALM President and CEO Emmanuel R. Ledesma Jr.
“Strips of energy” from the Visayas-based geothermal plants that range from one megawatt (MW) up to a maximum of 40 MW are at stake for the winning IPPA.
However, out of the 240 MW worth strips, only 200 of it will be offered to IPPAs. Thus, the remaining 40 MW with PSALM will serve as security capacity.
In addition, the IPPA for the bulk energy shall have the rights to the capacity in excess of the 240 MW sum of strips.
According to PSALM, the obligation to trade the Unified Leyte’s total output and the necessary registration applications required by the Wholesale Electricity Spot Market will lie solely with the IPPA for the bulk energy.
“The sale structure of the Unified Leyte IPPA encourages diversification in the market. This bid is not just limited to generation companies, given that even distribution utilities including electric cooperatives and other interest groups can participate and win as well,” said Ledesma.
Each interested party must submit a letter of interest not later than 5:00 PM of August 7.
Participants likewise need to execute a confidentiality agreement and an undertaking, pay a non-refundable participation fee of P200, 000.00 for the bulk energy and P50, 000.00 for the strips of energy on or before August 14 to acquire the bidding package.
Ram Idelbert A. Hilario
Leyte Normal University