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Manila Bulletin devider Business devider DOE corners six offers from lone bidder for electrification of micro-grid sites

DOE corners six offers from lone bidder for electrification of micro-grid sites

Published Jan 1, 2024 02:20 am

At A Glance

  • The tendering process for the unserved and underserved domains for energization had been underpinned by the provisions of Republic Act 11646 or the Micro Grid Systems Act and its implementing rules and regulations. <br> 

The Department of Energy (DOE) has cornered at least six passing bids from one investor-group for the energization of unserved and underserved microgrid sites covering designated areas in Cebu, Quezon and Palawan.

In an announcement to the media, the department emphasized that out of nine (9) pre-qualified bidders, it secured six complete offers from only one group – the Maharlika Consortium, which also passed all the criteria set in the auction’s terms of reference.

According to the DOE, the Maharlika Consortium is an aggrupation of three firms, namely Clean Power Holdings, Inc. as well as Singaporean firms CleanGrid Partners and WEnergy Global.

The acceptable proposals from Maharlika Consortium covered eight (8) lots – and that account for a portion of the 49 lots covering 98 unserved and underserved areas in the country that had been offered by the DOE via its 1st Micro Grid Service Provider – Competitive Selection Process (MGSP-CSP) activity.

Energy Undersecretary Rowena Cristina Guevara noted that “while we received proposals from only one pre-qualified bidder and acknowledge that we may not encompass all 98 declared unserved and underserved areas, we deem our pilot implementation of the MGSP-CSP a success.”

The offered lots straddle the franchise areas of Cebu II Electric Cooperative Inc., Quezon II Electric Cooperative Inc. and Palawan Electric Cooperative Inc. – and the cooperation period prescribed under the TOR will be for 20 years.

She qualified that the initial auction process “is a crucial step forward, as it ensures that communities will soon benefit from deploying microgrid systems.”

Guevara indicated that the department so far gained ‘learning experiences’ from the pilot CSP for the microgrid sites – and it will be employing those to improve processes in the next bid round targeted this year – primarily in securing higher degree of interest from investors.

Following the conclusion of the first auction last December 27, the passing bids will have to go through post-qualification process until February 20 this year and the issuance of the ‘notices of award’ will be by March.

“Should the proposal of Maharlika Consortium be found to be in accordance with the requirements of the terms of reference…a post-qualification process will be conducted before the DOE renders the notice of award, targeted to be issued by March 2024,” the department reiterated.

The tendering process on the unserved and underserved domains for energization had been underpinned by the provisions of Republic Act 11646 or the Micro Grid Systems Act and its implementing rules and regulations. 

 

 

Related Tags

Department of Energy (DOE) electrification program competitive selection process microgrid auction
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