The Department of Energy (DOE) asked the National Electrification Administration (NEA) to facilitate the joint conduct of competitive selection process (CSP) or bidding for the power supply of electric cooperatives (ECs) using indigenous natural gas as transition fuel.
It said this is pursuant to Department Order 2023-10-0022 mandating attached agencies and stakeholders to ensure adequate and optimal allocation of natural gas to ensure reliable supply and reasonably priced power to complement the variability of renewable energy and achieve the targets under the Philippine Energy Plan (PEP).
The DOE is encouraging the full utilization of indigenous natural gas, including the aggregation and blending with imported natural gas, development of the domestic natural gas industry and ensuring a market for existing and future production and utilization of indigenous natural gas.
The move will also provide a transparent and competitive environment for natural gas stakeholders, specifically the distribution utilities’ buying of natural gas from brownfield and greenfield power facilities.
The DOE authorized the NEA to issue the rules and guidelines for ECs in the conduct of aggregation of natural gas demand and the terms and conditions of the corresponding CSP.
It asked NEA to aggregate the demand of the ECs based on their uncontracted requirements and contracted demand expiring within two years pursuant to their latest and posted power supply procurement plan.
The aggregated demand will be subjected to the joint conduct of the CSP.
