Power retailer Manila Electric Co. declared a failure of bidding for the 260-megawatt interim peaking power supply requirement in preparation for an expected increase in demand during the dry months.
“The two supposedly bidders have withdrawn their expressions of interest and therefore resulted in failed bidding,” Meralco first vice president Jose Ronald Valles said.
The two interested bidders―1590 Energy Corp. of Vivant Energy Corp. and San Roque Hydro Power Inc. (SRHI) of San Miguel Global Power Holdings Corp. (SMGP)–decided to withdraw from the submission of bids for the interim power supply scheduled on Monday.
Valles said Meralco would inform the Department of Energy of the failure of bidding and ask for approval to conduct a second round.
Meralco documents showed 1590 Energy decided to withdraw its participation in the bidding, citing “excessive and unreasonable bid security required.”
SRHI decided to withdraw after “further evaluation of the terms of references and the pertinent circumstances.”
Meralco executive vice president Ronnie Aperocho said the company was working closely with the government and industry partners to push for demand-side management efforts and energy efficient practices that would help ensure stable and reliable supply in the coming months.
“As we approach the dry season, we continue to be proactive in securing sufficient and competitive-priced power through our CSPs, while remaining vigilant on the possible impact of the lingering El Niño phenomenon,” Aperocho said.
Meralco asked power suppliers of the 260-MW peaking capacity to ensure 100-percent availability of the contract capacity for 12 hours daily covering the peak hours from 9 a.m. to 9 p.m.
Meanwhile, Meralco set the bid submission for its 400-MW baseload requirement on Tuesday.
Interested bidders are First NatGas Power Corp. of First Gen Corp., Limay Power Inc. with SHPI and Masinloc Power Co. Ltd.
Both Limay/San Roque and Masinloc Power are subsidiaries of SMGP.
Meralco’s 400-MW capacity requirement will come from baseload supply, where each unit of the plant should be capable of generating its rated capacity for 24/7.