The Energy Regulatory Commission set the hearings for the joint application of Manila Electric Co. (Meralco) and GNPower Dinginin Ltd. Co. (GNPD) for their proposed 15-year power supply agreement (PSA).
GNPD won the contract to supply Meralco with 400 megawatts of mid-merit capacity with its offer of P7.6816 per kilowatt-hour (total delivered levelized cost of electricity (LCOE), value added tax and line rental inclusive).
GNPD’s offer was lower than the P8.0585 per kWh reserve price for LCOE set for the bidding held on Oct. 1, 2024.
Meralco conducted a competitive selection process after it foresaw a mid-merit capacity deficit in its portfolio of 400 MW beginning September 2025.
GNPD, led by Aboitiz Power Corp., owns and operates a 1,336-MW supercritical coal-fired power generation facility and private port facility at Sitio Dinginin, Barangay Alas-asin, Mariveles, Bataan.
According to the joint application, GNPD’s delivered rate of P6.7628 per kWh (line rental inclusive and VAT exclusive), is lower by about P2.3202 per kWh than the total effective cost of P9.0830 per kWh if the equivalent capacity under the PSA is to be sourced from the Wholesale Electricity Spot Market (WESM).
By sourcing the capacity through the Meralco-GNPD PSA, Meralco’s average blended generation rate will be reduced by about P0.1219 per kWh, resulting in savings to consumers of about P4.8 billion.
The commission set the determination of compliance with the jurisdictional requirements, expository presentation, pre-trial conference and presentation of evidence on March 14 and March 21, 2025.