State-run Power Sector Assets and Liabilities Management Corp. (Psalm) has started bidding out the Unified Leyte Geothermal Power Plants (ULGPP) to independent power producer administrators (IPPAs).
The ULGPP is composed of several geothermal units located in Tongonan, Leyte. The geothermal plants included in ULGPP are the 125-megawatt (MW) Upper Mahiao, 232.5-MW Malitbog and 180-MW Mahanagdong power plants, and the 51-MW optimization plants.
In an invitation to bid, it was indicated that Psalm has started the selection process for the IPPAs for the ULGPP. According to Psalm, an IPPA can win the rights to “strips of energy” from the Visayas-based geothermal plants that range from 1 MW up to 40 MW maximum.
Psalm explained that out of the 240 MW sum of strips, only 200 MW will be offered to IPPAs. The 40 MW, which will remain with Psalm, will serve as security capacity.
The IPPAs for the bulk energy, on the other hand, will have the rights to the capacity in excess of the 240-MW sum of strips.
Emmanuel Ledesma Jr., Psalm president and chief executive officer, said that the sale structure of the Unified Leyte to 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,” he added.
To acquire the bidding package, participants need to pay a non-efundable participation fee of P200,000 for the bulk energy, and P50,000 for the strips of energy on or before August 14, 2013.
Madelaine B. Miraflor