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MANILA, Philippines — SMC Global Power Holdings Corp., the power arm of conglomerate San Miguel Corp. (SMC), will join the bidding for the rights over Unified Leyte geothermal power plants’ output slated in October.
“Yes, we will bid,” said Ramon Ang, president and chief operating officer of SMC, when asked for a comment.
SMC Global is the Philippines’ largest power trader, currently administering the capacities of the Sual coal plant, San Roque hydropower plant and the Ilijan natural gas power facility.
The company has a total of 2,545 megawatts (MW) installed capacity, making it one of the largest independent power generation companies in the country.
Auction terms for the geothermal plant
The Power Sector Assets and Liabilities Management Corp. (PSALM) announced it would auction 440 MW of the Leyte geothermal power facility on October 29.
PSALM is the agency handling the privatization of National Power Corp.’s (Napocor) assets.
Two packages would be bid out, PSALM said early this year.
The first package includes the plant’s output totaling 200 MW, collectively known as the “strips of energy” or “strips.” The winning bidder can own the rights to the strips of energy from the Visayas-based geothermal plants ranging from 1 MW to 40 MW max.
PSALM explained only 200 MW of the 240 MW strips it owns would be sold. The remaining 40 MW would be retained to serve as security capacity.
The second package includes 240 MW of allocated capacity to be offered in one bulk. The winner of would become the administrator of the bulk energy, and would own the rights to the capacity that is in excess of the 240 MW strips, said PSALM.
The winning bidder for the bulk energy would also be responsible for trading Unified Leyte plants’ total energy output (bulk and sum of strips).
PSALM president Emmanuel Ledesma Jr. said distribution utilities can also join the bidding.
“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 said.
The Unified Leyte geothermal power complex is located in Tongonan, Leyte, and composed of several geothermal units:
- 125-MW Upper Mahiao
- 232.5-MW Malitbog
- 180-MW Mahanagdong power plants
- 51-MW optimization plants
The Unified Leyte plants have existing power purchase agreements with Napocor and the Energy Development Corp. – Rappler.com
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