Manila Electric Co. on Wednesday declared the offers submitted by First Gen Hydro Power Corp. of the Lopez Group, Phinma Energy Corp. of the Ayala Group and South Premiere Power Corp. of San Miguel Corp. as the best bids for the supply of the combined 500-megawatt mid-merit power requirement starting Dec. 26, 2019 for five years.
Meralco said the resulting prices from the competitive supply agreement are significantly lower than their average generation cost today of around P5.88 per kilowatt-hour (VAT inclusive). “The results of today’s bidding for 500 MW are expected to save consumers P4.4 billion annually for the next five years. This is equivalent to a rate reduction of around P0.13 per kWh for consumers, starting Dec. 26, 2019,” the power retailer said.
“Along with the results of first successful CSP, consumers are projected enjoy total savings of around P13.86 billion per year, or a rate reduction of P0.41 per kWh,” it said.
First Gen Hydro’s bid was for a contract capacity of 100 MW with an all-in headline rate (VAT inclusive) of P5.1908 per kilowatt-hour and computed all-in levelized cost of energy at P5.3989 per kWh.
Phinma Energy submitted a bid for 110 MW at all-in headline rate of P5.5858 per kWh and computed all-in LCOE of P5.5858 per kWh.
South Premiere’s bid was for 290 MW and had an all-in headline rate of P5.5347 per kWh and computed all-in LCOE of P5.7527 per kWh.
Meralco said in a statement the resulting prices from the CSP are significantly lower than their average generation cost today of around P5.88 per kWh.