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Wednesday, April 17, 2024

San Miguel power unit plans to offer output of 1,313-MW plant to Meralco in new bidding process

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San Miguel Global Power Holdings Corp. plans to offer the output of a 1,313.1-megawatt combined cycle power plant to Manila Electric Co. under a new competitive selection process even after it terminated the supply contract for the same project early this month.

SMGP said in a report to the Philippine Dealing & Exchange Corp. that subsidiary Excellent Energy Resources Inc. is constructing the Batangas combined cycle power plant that will utilize re-gasified liquefied natural gas.

It said it would offer the power output of the Batangas combined cycle power plant to Meralco when the latter holds a CSP or bidding later this year.

The company signed the engineering procurement and construction contract with Black & Veatch, BVI (Philippines) Corp. and First Balfour Inc. for the project in December 2021.

SMGP expects the construction period to be shorter with the substantial completion of the first blocks expected in one and a half to two years, compared to three to four years for coal-fired power plants.

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Meralco’s previous power supply agreement for 1,200-MW contract capacity for 20 years with EERI, effective Nov. 26, 2024, was terminated on April 1, 2023.

EERI offered a levelized cost of electricity of P4.1462 per kilowatt hour during the bidding in February 2019.

SMGP decided to terminate EERI’s and Masinloc Power Partners Co. Ltd.’ s contract with Meralco for a total capacity of 1,800 MW over the non-issuance by the Energy Regulatory Commission of the final approvals of the agreements within the respective long stop dates on Sept. 17, 2021 and Sept. 23, 2021.

SMGP said it was also exploring possible improvements to or the retrofitting of the 1,200-MW Ilijan power plant.

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