The Manila Electric Co. (Meralco) has started the competitive selection process (CSP) for 1,200 megawatts (MW) of baseload requirement meant to meet the growing demand for electricity within its franchise area.
This followed the Department of Energy’s (DOE) issuance of a Certificate of Conformity on the Terms of Reference (TOR) for the 15-year Power Supply Agreements (PSAs) which will be effective once approved by the Energy Regulatory Commission (ERC).
Through its Bids and Awards Committee for PSAs, Meralco called on interested power generation companies to participate in the CSP, with the Submission of Expression of Interest due on December 11, 2023.
The pre-bid conference is scheduled on December 18, 2023, while the Bid Submission Deadline is set on January 23, 2024.
The TOR states that pursuant to the DOE’s advisory on the conduct of CSP for power supply using indigenous natural gas as transition fuel, “power suppliers with natural-gas fired power plants are highly encouraged to participate in the Bidding.”
It further provides that operations effective date for the initial 810 MW would be on December 26, 2023, while additional 200 MW and 190 MW would be effective by February 26 and March 26, 2024, respectively.
This CSP, which was based on Meralco’s DOE-approved Power Supply Procurement Plan, is meant to meet the power distributor’s future capacity requirements, including the 1,000 MW supply that was covered by its PSAs with change in circumstance cases that are pending resolution.
Last year, Meralco’s energy sales volumes increased by 6 percent to 48,916 gigawatt hours (GWh) from 46,073 GWh in 2021 brought about by the minimal restrictions in commercial and social activities. Sales mix continued to shift towards the commercial segment, Meralco had reported.
The company said in November that its core earnings will likely reach P37 billion by the end of 2023 and surpass last year’s P27.1 billion after the company ended the nine-month period with P30 billion.
“As we approach the close of 2023, it might be appropriate to provide our guidance for our full year’s performance. In this regard, absent a Black Swan event, Meralco’s CCNI [consolidated core net income] for the full year is likely to land at P37 billion,” Meralco Chairman Manuel V. Pangilinan said.
During the press briefing on the company’s financial and operating results for January to September, Meralco reported that its CCNI at end-September jumped by 53 percent from P19.6 billion in the same period last year.