Aug. 10--THE Department of Energy (DOE) will bid out petroleum exploration and development contracts within the month, an official said.

Energy Undersecretary Ramon Oca told reporters over the weekend that the agency is reviewing petroleum blocks that will be placed on the auction block as part of the second phase of this year's Philippine Energy Contracting Round (PECR).

The PECR kicked off with the bidding of coal exploration areas in May.

"We are still reviewing it, subject to finalization and for the secretary's approval. We are looking to have it approved this month," Oca said.

The government may offer more than five contracts mostly offshore for petroleum development.

Oca said the agency is evaluating the offers it received for the 30 coal contracts it auctioned off in May.

During this bidding round, the department received 25 proposals from 17 companies for around 12 or 13 areas that were offered for coal exploitation.

"We are still on the final stages of evaluation. We are hoping to finish it soon so that we could end it as we begin the petroleum round," he said.

Launched in 2005, the PECR is a public contracting round crafted by the government to draw investors into local energy projects to reduce the country's reliance on imported fuel.

Last year, the said carbon-based fuels accounted for about 40 percent of the 50.62 million megawatt-hours of electricity generated in the country. In the transport sector, imported petroleum-finished products represented around 97 percent of local requirements.

The DOE is also set to include renewable energy projects in future PECRs.

Under Department Circular 2009-07011, exploration and development of renewable energy in the country will be required to undergo an open and competitive bidding process.

But unlike the current PECR, in which the DOE lines up potential contracts first before bidding these out, renewable energy contracts will be offered to investors as soon as these are identified.

Geothermal energy contracts will be classified under renewable energy projects together with hydro, biomass, solar, wind, and ocean sources, among others.

"The publication of areas shall be made as practicable depending on the number of identified areas and type of RE [renewable energy] resources, among others," the guidelines read.

Mario Marasigan, Energy Utilization and Management Bureau director, said the DOE still has to complete mapping out the country's renewable energy resources.

The Renewable Energy Act of 2008 provides fiscal and non-fiscal incentives to proponents of renewable energy projects to support clean and indigenous power sources.

The DOE reserves the right to directly negotiate with investors who apply for "frontier areas" of renewable energy projects, when a contract on the auction block does not receive a proposal or no bidder qualifies for it.

Also, renewable energy projects that are for non-commercial operations or for "own-use" will not be put on the auction block but will have to be registered with the DOE so that proponents can avail of incentives under the law.

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