DOE sets auction terms for Leyte geothermal complex

MANILA, Philippines – The bidding terms for the 640-megawatt (MW) Unified Leyte geothermal power complex, which is acclaimed as world’s largest wet steam field, is out.

At stake is a contract as independent power producer administrator (IPPA) of the contracted capacities of the geothermal titan that is beating at the heart of a geothermal reservation in Leyte province.

Among those involved in setting the auction terms is Energy Secretary Carlos Jericho Petilla, a former governor of Leyte. Petilla, who assumed the energy portfolio in October 2012, sits as the vice chairman of the Power Sector Assets and Liabilities Management Corp. (PSALM), which oversees the privatization of various sectors of the power sector.

On Thursday, March 7, Petilla said the IPPA contract for the geothermal power complex will be auctioned off is designed to allow industries, electric cooperatives and large power to participate

The auction for the right to administer the 640-MW capacity of the complex will be divided into:

• 240-MW, a single contract 
• 400-MW at 1-MW each per contract

“We’re looking at strips of one megawatt per contract. We plan to offer 240 MW in bulk then the remaining will be strips of one megawatt,” Petilla told reporters.

“Definitely, the distribution utilities can bid. In fact, PASAR (Philippine Associated Smelting and Refining Corp.) can bid. End users can bid,” he added.

Previously, the government was contemplating on bidding out the capacity at 384MW and 255 MW per contract.

Complex, bidders

The Lopez-led Energy Development Corp. (EDC) currently operates the Unified Leyte geothermal power complex.

The Unified Leyte complex consists of 4 production wells:

• 125-MW Upper Mahiao
• 232.5-MW Malitbog
• 180-MW Mahanagdong 
• 51-MW Leyte Optimization plants

The area straddles Ormoc City and Kananga town in West Leyte.

Those who have earlier expressed interest to participate in the auction are the

• Ayala Group
• Aboitiz Power Corp.
• Pacifica Inc. of the Romero Group 
• First Gen Corp., parent firm of Energy Development Corp.

Petilla earlier said the bidding for the Unified Leyte could take place in either May or June 2013. – Rappler.com