TRANS-ASIA Oil and Energy Development Corp. is no longer interested to bid for the selection and appointment of an independent power producer administrator (IPPA) for the bulk energy of the Unified Leyte Geothermal Power Plants (ULGPP), its top official said.
“We will no longer bid for it. Geothermal is expensive. It’s capital intensive. Coal is still much cheaper,” Trans Asia President Franciso Viray said in a text message.
Trans-Asia was among the four investor groups that earlier expressed to bid for the supply of bulk energy. The other three are SPC Power Corp.; Therma Central Visayas Inc.; and Unified Leyte Geothermal Energy Inc. All four earlier attended the prebid conference conducted by the Power Sector Assets and Liabilities Management Corp. (PSALM).
The ULGPP is composed of the 125-megawatt (MW) Upper Mahiao, 232.5-MW Malitbog, and 180-MW Mahanagdong power plants; and the 51-MW optimization plants. It is covered by power purchase agreements between the National Power Corp. and the Energy Development Corp.
The PSALM Board has scheduled the auction on September 2.
Trans-Asia, said Viray, intends to pursue projects to bulk up its generation portfolio to cater to more customers. “We need to increase our generation capacity to coincide with the growing power demand and to become a key player in the industry.”
The power firm has recently completed the first 135-MW unit of a coal-power project in Calaca, Batangas. This is being undertaken by South Luzon Thermal Energy Corp (SLTEC), a joint venture between Trans-Asia and AC Energy of the Ayala Group. It declared commercial operations in April.
Unit 2, which will generate another 135 MW, is set for commercial operations before year-end. The construction of the second unit is under way and is in the final stages of completion.
Trans-Asia is now laying the ground work for additional projects to address the country’s power needs for the 2018-2023 period. These include the expansion of the 20-MW geothermal power plant under Maibarara Geothermal Inc. for another 10 MW.
It is expected to be online by the first quarter of 2017.
MGI is Trans-Asia’s joint venture with PetroEnergy Resources Corp. and PNOC Renewables Corp.
Trans-Asia also recently acquired power barges 101-103 with a total capacity of 96MW. These will contribute to the energy needs in the Visayas.
Trans-Asia, the power firm of the PHINMA group, earlier reported a 74-percent jump in its net income in the first semester of the year to P377 million from P216 million in the same period a year ago.
Company revenues from January to June this year also increased to P1.26 billion from P969 million at end-June last year.
The company cited strong generation revenues in the second quarter this year to P753 million this year from P369 million. Revenues from electricity trading in the spot market also grew by 21 percent for the second quarter to P398 million from P329 million due to lower cost of power.