Nine firms are reportedly interested in the divestment of the 650 MW Malaya thermal power plant.
The following firms are the SMC Global Power Holdings of the San Miguel Group; AC Energy Inc., DMCI Power Corporation, Panasia Energy Inc., Quezon Power (Philippines) Ltd, Co.; Crown Investment Holdings Inc.; Energy World Power Operations Philippines Inc., FGen Reliable Energy Holdings Inc., and Pan Pacific Renewable Power Philippines Corp.
According to a report by the Manila Bulletin, there are two options for the said thermal plant. First is to convert the facility into a gas plant; second is to have its power generation aligned for the ancillary services needs of the Luzon grid.
With the Renewable Portfolio Standards (RPS) program in place, a “back-up power capacity” for the Malaya plant would be crucial to meet the projected targets of higher penetration of renewable energy through the RPS.
If the buyer will pursue improvements on the plant’s ramp up rate, the Malaya plant was noted to be ideal to support the intermittency of renewables which form part of the ancillary services required to ensure reliable operation and seamless service to consumers.
Asset-seller Power Sector Assets and Liabilities Management Corporation (PSALM) said it will no longer impose conditions concerning the sale of the asset due to its current track of privatization.
When the facility was first put up for auction last year, there had been requirements to have the plant converted into a gas-fired asset and to have it as a must-run unit (MRU) for three years.
Due to these conditions, several prospective bidders backed out, which forced PSALM to backpedal on the asset’s divestment.
Right now, PSALM firmly said that it is ready to let go of the asset given the current improvements in the power supply-demand outlook the country is now experiencing.
Capacity additions have been reaching commercial stream, which includes the biggest power grid of Luzon, ensuring that consumers will not be compromised of brownout conditions in case the State would unload on its remaining power assets.