Four companies expressed interest to participate in the bidding for Manila Electric Co.’s 70-megawatt supply contract covering the period January 2022 to January 2037.
“Representatives from the four interested bidders were present, along with three DOE [Department of Energy] observers, led by Engr. Rodel Limbaga of the Power Bureau,” Lawrence Fernandez, Meralco vice president and head of utility economics, said. Meralco held the pre-bid conference on Friday.
Fernandez said all the interested bidders have power plants registered at the Wholesale Electricity Spot Market, the trading floor of electricity, since 2017.
Meralco is bidding out the 70-MW baseload capacity, which was affected by the Supreme Court ruling requiring distribution utilities to conduct a competitive selection process in the procurement of their supply requirement.
The capacity involves the power supply agreement of Meralco with supplier Panay Energy Development Corp.
“The SC ruling on the ABP case affected the PSA of Meralco with PEDC. The ruling means that the 70 MW should undergo CSP in compliance with the DOE’s 2018 CSP guidelines,” Fernandez said earlier.
He said PEDC could still participate in the bidding. Bid submission is scheduled on or before 9 a.m. of Nov. 19.
Under the TOR, the bidder’s proposed price and its levelized cost of energy are both subject to a pre-determined reserve price, which will only be revealed by the third-party bids and awards committee to qualified bidders during the opening of the bids.
The TOR also states that the winning bidders will have to provide 100-percent guaranteed availability of supply or no outage allowance.