The Department of Energy (DOE) has ordered the National Electrification Administration (NEA) to begin the bid process for the various electric cooperatives to buy power from indigenous natural gas suppliers as transition fuel.
The bid mandate allows electric cooperatives to sign power supply agreements only after calling for and receiving at least two qualified bids from the generation companies. Direct negotiations with other power suppliers are allowed but only after two failed bids.
Energy Secretary Raphael Lotilla on October 10, the directive ensures adequate allocation of natural gas for generating power to complement the variability of renewable energy.
It also encourages the full use of indigenous natural gas, including its aggregation and blending, to help develop the domestic industry and ensure a market for existing and future production of locally produced fuel.
The DOE also said the directive provides a transparent and competitive environment for natural gas stakeholders, specifically for distribution utilities, to buy power from both brownfield (or existing) and greenfield (completely new) gas power facilities.
The issuance also mandates NEA to establish the necessary rules, guidelines and methodology for the conduct of the aggregation of demand of ECs from natural gas fired facilities.
