Published January 4, 2017, 10:01 PM By Myrna M.
Velasco
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.”
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