Companies backed by Razon-led Prime Infrastructure Capital, Inc. (Prime Infra) and Ang-led San Miguel Corp. (SMC) are among nine bidders that have advanced in the Philippine government's first waste-to-energy (WTE) auction, the Department of Energy (DoE) said.

In a statement on Tuesday, the DoE said nine companies, representing 12 projects with a combined capacity of 428 megawatts (MW) — about 36 MW per project on average — had been identified for possible awards following the special WTE auction. The bidders must complete the prescribed post-auction requirements before their respective certificates of award can be issued.

"This first waste-to-energy auction opens new opportunities to turn municipal solid waste into a productive energy resource. It is an important step toward encouraging investments that can support electricity supply while helping communities address growing waste management challenges," Energy Secretary Sharon S. Garin said.

Among the bidders identified by the DoE are Prime Integrated Waste Solutions, Inc., the waste-management arm of Prime Infra, and Pan Pacific Renewable Power Phils. Corp., which has an ownership link to SMC. Prime Integrated Waste Solutions offered 23 MW of capacity from its 25-MW WTE project in Pampanga, while Pan Pacific Renewable Power advanced after offering capacity from two WTE projects in Cavite and Navotas.

The SMC ownership link runs through San Miguel Global Power Holdings Corp., a subsidiary of the conglomerate, which holds a 40% stake in FPSP Holdings Corp., the company that wholly owns Pan Pacific Renewable Power.

The other bidders identified by the DoE are Manila Integrated Environment Corp., LECRA Eco Sustain Philippines, Inc., International Solid Waste Integrated Management Specialist, Inc., Forza Development Corp., North Maharlika Energy Corp., San Mateo Sanitary Landfill and Development Corp., and the City Government of Davao — the only local government unit on the list.

Two of the 11 qualified bidders — Pangilinan-led MetPower Venture Partners Holdings, Inc. and Green Atom Renewable Energy Corp. — did not make the DoE's list.

The DoE said all price offers were below the auction reserve price of P9.2959 per kilowatt-hour set by the Energy Regulatory Commission. In auctions of this type, the reserve price acts as the ceiling for acceptable offers.

The projects are targeted to begin commercial operations no later than Dec. 31, 2029, subject to the completion of development and regulatory requirements.

"Our priority is to ensure that these commitments translate into actual projects that serve the public," Ms. Garin said.

WTE technologies convert waste materials into usable energy, including electricity, heat, or fuel. The DoE said the projects are expected to provide an additional source of electricity while helping local governments address solid-waste management challenges.

The agency also expects the facilities to help mitigate flooding by reducing the volume of improperly discarded waste that can clog drainage systems and waterways.

"When integrated with proper waste collection and segregation, these facilities can support efforts to keep drainage channels clear and reduce the risk of flooding associated with waste-related blockages during heavy rainfall and typhoons," the DoE said.

Reported by Sheldeen Joy Talavera for BusinessWorld.

Source: BusinessWorld