Power retailer Manila Electric Co. is seeking offers from power generators to supply 400 megawatts of mid-merit capacity for 15 years starting Aug. 26, 2025.
A mid-merit power plant can adjust its capacity based on demand at certain hours of the day.
“We encourage all power suppliers to participate as this is a huge 600 MW capacity. This will at least assure a more reliable and stable supply to Meralco customers…This is open to brownfield, open to greenfield power plants,” Meralco senior vice president and head of regulatory management office Jose Ronald Valles said.
Meralco set the submission of expression of interest to participate in the competitive selection process (CSP) on July 1, 2024 and the pre-bid conference on July 5, 2024. The bid submission deadline is on Aug. 9, 2024.
Meralco said that based on the Department of Energy advisory dated Oct. 11, 2023, power suppliers with natural gas fired power plants are highly encouraged to participate in the bidding the prioritize the use of indigenous natural gas.
Interested bidders should be able to supply 100 percent of the contract capacity for a continuous period of 15 hours Mondays to Saturdays covering the peak hours of 9 a.m. to 12 noon and 10 hours on Sundays covering the peak hours of 2 p.m. to 12 midnight.
Meralco has an ongoing CSP for 500 MW of mid-merit renewable energy (RE) capacity where three companies attended the pre-bid conference, including Gigasol3, San Roque Hydro Power and Santa Cruz Solar.
The Gigasol 3 owns the 63-megawatt solar plant in Palauig, Zambales, while Santa Cruz Solar Energy is developing a 283-MW solar farm in San Marcelino, Zambales. Both solar plants are controlled by the Ayala Group’s ACEN Corp.
Meanwhile, San Miguel Corp.’s San Roque Hydro Power Corp. owns the 435-MW hydro facility in Pangasinan.
Meralco said the 10-year power supply agreement (PSA) resulting from the 500-MW mid-merit RE CSP would cover Meralco’s 350-MW mid-merit requirement starting February 2025, which would increase by 150 MW beginning February 2026. Meralco’ s BAC set the bid submission deadline on July 17.
Meralco also has an ongoing CSP for 600 MW of baseload supply intended to meet the power distributor’s requirements starting next year.
The CSP involves a 15-year PSA which is targeted to start on Aug. 26, 2025.
Meralco set the deadline for submission of expression of interest on June 25, 2024. The pre-bid conference is scheduled on July 4, 2024, while the bid submission deadline is on Aug. 2, 2024.
