Energy department awards 10 RE contracts under OCSP 2

Energy department awards 10 RE contracts under OCSP 2

The Department of Energy (DOE) has awarded renewable energy contracts for eight hydropower sites and two geothermal areas auctioned under the second open and competitive selection process (OCSP 2)

Six companies won the eight hydropower sites while two companies bagged the two geothermal areas, data from the DOE evaluation said.

The Lopez group’s First Gen Mindanao Hydropower Corp won most of the contracts: Area 4 Binongan – Tineg in Abra, Area 15 Cateel in Davao Oriental and Area 16 Cagayan 1N in Cagayan de Oro.

Vivant Energy Corp. of Cebu bagged two RE service contracts for Area 12 Tubig and Area 13 Buhid in Eastern Samar.

Meanwhile, the Phinma Energy Corp won the Area 7 Ilog in Mabinay. Clean N Energy Solution Inc. won the contract for Area 14 Bugtong in Samar.

Area 17 Agus III in Lanao del Norte and Lanao del Sur contracts were given to the Marano Energy Corp.

For the geothermal contracts, Repower Energy Development Corp. won Area 2 in Southern Leyte, while the Energy Development Corp won Area 3 Amacan in Compostela Valley.

DOE Renewable Energy Management Bureau director Mario Marasigan said that the service contracts were already awarded to the winning bidders.

Under the service contracts, the winning companies will be given two years for pre – development for less than 50 MW and five years of at least 50 MW. It also includes a 25 year development stage that can be renewed for another 25 years.

In February last year, DOE offered 21 RE sites under the OCSP 2, four are geothermal sites with a potential capacity of up to 134 megawatts (MW) and 17 hydropower sites of up to 733.4 MW.

The department received only offers for the geothermal concession areas and 31 proposals for the 14 hydropower deals.

Area 1 and Area 2 Madongan 1, and Area 3 Solsona in Ilocos Norte; Binalbagan 1, Area 9 Binalbagan 2, Area 10 Binulog in Negros Occidental were hydropower sites declared failure as the bids did not qualify.

DOE also declared failure for hydropower sites Area 5 Sinambalan 1 in Occidental Mindoro, Area 6 Pagbalan 1 and Area 11 Hilabangan in Negros Occidental; and geothermal sites Area 1 Acupan – Itogon in Benguet and Balut Island in Davao Occidental that had no bid proposals.

DOE said that these sites will be opened “direct negotiation subject to the compliance of regulatory requirements.”