MANILA, Philippines—The Power Sector Assets and Liabilities Management Corporation (PSALM) has started the selection process for Independent Power Producer Administrators (IPPAs) that will assume ownership of the Unified Leyte Geothermal Power Plants’ output. Bidding is set to take place in October this year.
At stake are rights to the “bulk energy” or smaller-sized output referred to as “strips of energy,” for which any qualified company can bid, PSALM president and CEO Emmanuel R. Ledesma Jr. said in a text message.
As such, the sale structure of the Unified Leyte 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,” Ledesma said.
In an earlier published invitation to prospective bidders, PSALM said interested parties can participate in the tender for bulk energy.
An IPPA can win the rights to these “strips of energy” from the Visayas-based geothermal plants that range from 1 megawatt (MW) up to a maximum of 40 MW. 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 IPPA for the bulk energy will have the rights to the capacity in excess of the 240-MW sum of strips. The obligation to trade the Unified Leyte power complex’s total output (bulk and sum of strips), as well as the necessary registration applications required by the Wholesale Electricity Spot Market, “shall lie solely with the IPPA for the bulk energy,” according to PSALM.