Gas auction draws 14 projects as power firms seek capacity contracts
The Department of Energy has released its list of pre-qualified bidders for the Mid-Merit Natural Gas Capacity Auction, which seeks to secure flexible power generation to meet growing electricity demand and support the government’s efforts for renewable energy expansion.
Competition for natural gas power capacity is taking shape as 14 projects cleared the government’s initial auction screening, putting major energy developers in contention for supply deals that could strengthen the country’s electricity reserves.
The Department of Energy (DoE) has released its list of pre-qualified bidders for the Mid-Merit Natural Gas Capacity Auction, which seeks to secure flexible power generation to meet growing electricity demand and support the expansion of renewable energy.
“The List of Pre-Qualified Bidders is issued following the evaluation of the Registration Documents submitted by Interested Bidders during the Registration Period,” the DoE said in its 30 September advisory.
Projects that cleared screening
Among the projects that cleared screening are Panasia Energy Inc.’s Bataan Combined Cycle Power Plant, Therma Cebu Gas-To-Power Inc.’s Toledo gas-fired power project and three projects proposed by Cordova Power Generation Corp. in Panay, Cebu and Luzon.
First Natgas Power Corp.’s 420-megawatt (MW) San Gabriel Combined Cycle Power Plant also qualified, alongside three projects under Excellent Energy Resources Inc. covering its Visayas plant, Iloilo Combined Cycle Power Plant and the second phase of its Batangas facility.
The list also includes Quezon Power Inc.’s combined-cycle gas-fired turbine project in Quezon province and Vires Energy Corp.’s natural gas power project.
Meanwhile, First Gen-related companies secured slots for the 600-MW Santa Maria, 1,000-MW Santa Rita and 500-MW San Lorenzo power plants.
Natural gas facilities complementing solar, wind power
The auction could expand the country’s access to dispatchable generation, allowing natural gas facilities to complement solar and wind power when renewable output is insufficient to meet demand.
However, pre-qualification does not guarantee capacity awards, as developers must still comply with bidding requirements and compete in the succeeding auction stages.
“Pre-Qualified Bidders are given a one-time rectification period of two working days from receipt of the corresponding notification to address the specific deficiencies, additional information, and/or clarifications identified in the Registration Documents,” the DoE advisory said.
Pre-bid conference set for 27 October
The DoE has tentatively scheduled a pre-bid conference for 27 October, subject to the Energy Regulatory Commission’s issuance of the Gas Auction Threshold price.
The agency will separately issue instructions for accessing the electronic bidding platform ahead of the auction.