Asian Energy Advisors

Energy Philippines has the early story:

AP Renewables Inc., a full subsidiary of listed Abotiz Power Corporation, bagged the Tiwi-Makban geothermal complex in a bidding conducted yesterday by Power Sector Assets and Liabilities Management Corp. (PSALM) with a bid of $ 446.88 M.

It outflanked the only other bidder–First Luzon Geothermal Energy Corp. of the Lopez-controlled Energy Development Corporation which came in with a much lower bid of $ 368.44 M.

My summary of all the major asset privatizations is here.

Look at the price: $598/kW. Compare that to the other sales which range $1500/kW to $1800/kW for coal and hydro.

I’m not up to date on the condition of the assets and steam field. Maybe this price is indicative of extensive capital expenditures required to rehabilitate? Or maybe indicative of the inability of the steam fields to actually provide the full 747 MW of rated output? Or are we seeing, finally, a rationalization of asset pricing that better matches realistic expectations of future market prices?

On this day..

• Analyzing Meralco's P9.4 Billion - 2007
• Philippine Cooperative Movement - 2006