POWER retailer Manila Electric Co. (Meralco) is preparing for a new competitive selection process (CSP) for 900 megawatts (MW) of baseload capacity later this year.
“There is another one in the pipeline, but we are still waiting for comments on a resolution from the Department of Energy [DOE] with respect to CSP,” said Meralco head of regulatory management Ronnie Valles in an interview.
“These are more urgent in terms of commercial operation dates [COD]. As we have submitted to the DOE, another 900 MW baseload CSP is supposed to be done in the latter part of this year,” said Valles.
The 900 MW is targeted for commercial operations on Feb. 26, 2030, with a contract term of 15 years.
Meralco is also awaiting confirmation from the DOE, the Energy Regulatory Commission (ERC) and the Philippine Competition Commission (PCC) for its proposed CSPs involving 200 MW of baseload renewable energy (RE), 450 MW of mid-merit capacity and 600 MW of baseload capacity.
The 200 MW capacity is scheduled to be supplied starting Jan. 26, 2026. The 600 MW baseload supply is set to begin on Feb. 26, 2028. The 450 MW of mid-merit capacity will be supplied in two tranches: 300 MW from Feb. 26, 2028 to Feb. 25, 2043, and 150 MW from Feb. 26, 2029 to Feb. 25, 2044.
Valles said Meralco is waiting for the final resolution by the DOE for the 200-MW baseload RE capacity. The PCC is still reviewing the 600-MW baseload and 450-MW mid-merit capacity for CSP.
This follows a recent PCC decision that allowed MGEN, Aboitiz Power Corp. and San Miguel Corp. to proceed with their joint acquisition of two gas-fired power plants and a liquefied natural gas (LNG) terminal.
The PCC’s approval of the transaction includes safeguards, such as its oversight of the CSPs, to ensure that power supply agreements are awarded through a transparent and competitive bidding process.
The oversight aims to prevent collusion or unfair practices. The two power plants involved in the transaction are owned by Excel-lent Energy Resources Inc. and South Premiere Power Corp.
