PEA approves PPUC solar project power purchase agreement

Palau Energy Agency approved Palau Public Utilities Corporation (PPUC) Independent Power Producer (IPP) Power Purchase Agreement (PPA) for a 20MWp renewable solar energy generation.
The PPA was approved by PPUC Board of Directors and submitted to Palau Energy Agency in November for their final approval. PEA gave their approval before the 60 days allotted for review expired.
“We have been very meticulous, detailed and careful with review of this one. Other than couple of technical clarifications, PEA has approved the PPUC’s contract in compliance with the law and PEA regulations. We did not want to have the same issues as the last one,” stated Mr. Joe Chilton, of Palau Energy Administration, referring to the initial PPA with Engie Ltd.
With PEA approval secured, PPUC can proceed with the contract. Mr. Anthony Rudimch of PPUC previously reported that PPUC expected to implement the contract by January of this year, 2021.
The Independent Power Producer bid was issued out by Palau Public Utilities Corporation (PPUC) in 2018 year for a renewable solar energy producer. The IPP was to build, operate and sell power to PPUC for an agreed price and terms as negotiated in the Power Purchase Agreement.
With assistance of Asian Development Bank expertise and NREL, PPUC had selected a bidder and started negotiating with the company in May of 2019 on Power Purchase Agreement (PPA).
PPUC’s technical team along with expert support negotiated the terms of the PPA and final draft was approved by PPUC Board and submitted to PEA last year.
Out of thirteen (13) original bidders, PPUC selected three finalists, METKA ENG (Cyprus based company), ENGIE (a France based company) and SOLAR PACIFIC, all huge multinational solar power producing corporations. Reliable source say SOLAR PACIFIC is final bidder but PPUC has not officially confirmed this.
Unless the bid requires government sovereign guarantee, it will not be going to OEK for approval. Last proposal for a 45MW solar generation project was rejected by OEK when government sovereign guarantee was requested.