DOE awards new contracts for hydro, geothermal dev’ts

By Myrna M. Velasco –  January 4, 2017, 10:01 PM
from Manila Bulletin

Department of Energy (DOE) has awarded 10 new areas of development for hydropower and geothermal projects via its open and competitive selection process (OCSP) scheme of contracting.

Of the ten, seven hydropower ventures have been bestowed to various developer-firms; while two areas were set for geothermal resource developments.

The awarded hydropower renewable energy service contracts (RESCs) had been: Areas 4, 15 and 16 for Binongan-Tineg, Cateel and Cagayan 1N prospects to First Gen Mindanao Hydropower Corporation; Area 7 for Ilog venture to Trans-Asia Oil and Energy Development Corporation (now PHINMA Energy); Areas 13 and 14 for Tubig and Buhid prospects to Vivant Energy Corporation; Area 14 for Bugtong to Clean N Energy Solutions, Inc., and Area 17 for Agus III project to Marano Energy Corporation.

For geothermal, the winning bids had been bestowed for Area 2 Southern Leyte undertaking to Repower Energy Development Corporation; and Area 3 for Amacan venture to Energy Development Corporation.

The energy department, on the other hand, has declared failure of bidding in six hydropower service contracts that had been offered under OCSP to prospective investors.

These include Areas 1 and 2 for Madongan 1 and 2 hydropower service contracts; Area 3 for Solsona; Areas 8 and 9 for Binalbagan 1 and 2 targeted developments; as well as Area 10 for Binulog venture.

With such development, the energy department noted that these areas will be “open for direct negotiation,” but subject to the regulatory requirements of the Circular setting the OCSP scheme.

Meanwhile, the DOE indicated that it failed to receive bids for at least three service areas for hydro in Sinambalan 1, Pagbalan 1 and Hilabangan 3 prospects; and two areas for geothermal in Acupan-Itogon and Balut Island projects.

The RE service contracts tendered under OCSP are those considered primarily as ‘non-frontier’ or the areas with RE sources having sufficient available technical data and feasible for immediate development and utilization.

When such project selection process was introduced by the DOE, it noted that it had given proclivity to service areas endorsed by local government units (LGUs) as well as those set as priority by distribution utilities (DUs) taking into consideration their critical role as off-takers of generated capacities.

In the rules crafted by the energy department, it stipulated that “preference may be given for non-frontier areas with private proponents with LGU endorsement.”

It was further prescribed that “a similar preference may also be given to the DU with interests in the development of RE resources within its franchise area.”