Manila Electric Co. issued the notice of award to the three best bids offered by Phinma Energy Corp., San Miguel Energy Corp. and South Premiere Power Corp. for the supply of 1,200 megawatts effective Dec. 26.
Meralco successfully held on Sept. 9 the competitive selection process or public bidding for the supply of the 1,200-MW baseload power requirement from Dec. 26, 2019 to Dec. 25, 2029.
“The winning bidders were issued respective notices of award after having passed the post-qualification evaluation. The respective power supply agreements are still subject to the approval of the Energy Regulatory Commission,” the company said in a disclosure to the stock exchange.
Phinma Energy, which is now a part of the Ayala Group, will supply Meralco with 200 MW capacity while San Miguel Energy will supply 330 MW. South Premiere Power, a subsidiary of SMC Global Power Holdings Corp., won the bid for 670 MW.
Meanwhile, Meralco said the best bids for the supply of 500 MW mid-merit capacity from Dec. 26, 2019 to Dec. 25, 2024 would still undergo evaluation. Meralco held the CSP process for the 500-MW supply on Wednesday.
“The winning bidders will still be subjected to post-qualification evaluation, execution of their respective power supply agreement and the approval of the Energy Regulatory Commission,” it said.
The third-party bids and awards committee found the offers of First Gen Hydro Power Corp. for 100 MW, Phinma Energy for 110 MW and South Premiere for 290 MW as the best bids.
Meralco said no contract capacity was awarded for the 1,200-MW supply for commercial operations by 2024 “due to only one bid received.”
Meralco said the resulting prices from the CSP are significantly lower than their average generation cost today of around P5.88 per kilowatt-hour (VAT inclusive).
The results of the bidding for 500 MW are expected to save consumers P4.4 billion annually for the next five years. This is equivalent to a rate reduction of around P0.13 per kWh for consumers, starting Dec. 26, 2019.