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Aboitiz Power joins auction for Leyte geothermal power contracts

Tongonan, Leyte Geothermal power plant, Philippines
Alexander Richter 18 Aug 2013

Aboitiz Power Corp. through Aboitiz Renewables has registered for the auction of PSALM for the geothermal power contracts for the Unified Leyte geothermal plants.

Local news report that Aboitiz Power Corp. will join the bidding for the Unified Leyte geothermal power contract in October.

“We’re interested in the privatization of some of PSALM’s assets. In fact, we have registered for Unified Leyte. I think we applied under Aboitiz Renewables [AP Renewables Inc.] but the chances are we will probably form a special purpose vehicle [for Unified Leyte bidding],” Aboitiz Power president Erramon Aboitiz told reporters.

PSALM, the agency tasked to privatize National Power Corp.’s assets, will offer the contracts in two packages. The first package involves the plant’s output totaling 200 MW collectively known as the Strips of Energy or Strips.

The bidder can win the rights to “strips of energy” from the Visayas-based geothermal plants that range from 1 MW to 40 MW.

The second package involves 240 MW of allocated capacity which will be offered in one bulk, known as Bulk Energy.

He said the company continued to build its power generation capacity through the construction of greenfield or new power projects.

We are also studying some geothermal sites. That basically is where our focus is building new capacity rather than looking at buying existing assets,” he said.

Source: Manila Star