Eight generation companies expressed interest to participate in the competitive selection process (CSP) or bidding for 600 megawatts (MW) of baseload supply intended to meet Manila Electric Co.’s requirements starting 2025.
Meralco head of utility economics Lawrence Fernandez said the offers exceeded the 600-MW requirement of the company.
“Eight gencos submitted expressions of interest by the deadline. The total offered capacity from the eight bidders was 1,870 MW, vis a vis the 600 MW requirement to be bid out,” Fernandez said.
The companies submitted expression of interest to Meralco’s Bids and Awards Committee for power supply agreement during the June 25 deadline.
Meralco is conducting the CSP following the Department of Energy’s (DOE) issuance of a certificate of conformity to the approved-power supply procurement plan for the terms of reference (TOR) of the latest CSP.
The TOR provides that “power suppliers with natural gas fired power plants are highly encouraged to participate in the bidding and prioritize the use of indigenous natural gas.”
This CSP involves a 15-year power supply agreement (PSA), which is targeted to start on Aug. 26, 2025. The pre-bid conference is scheduled on July 4, and the bid submission on Aug. 2, 2024.
The conduct of CSPs is part of Meralco’s continuing efforts to ensure the availability of reliable, sufficient and cost-competitive power for customers.
Meralco also started the bidding for 500 MW of mid-merit renewable energy (RE) capacity and another 400 MW mid-merit capacity.
A mid-merit power plant is able to adjust its capacity based on demand at certain hours of the day.