The Manila Electric Co. (Meralco) said on Wednesday it has successfully completed a critical step in enhancing its power supply capacity after securing the best bid for 1,200 megawatts (MW) through a competitive selection process (CSP).
According to Meralco Bids and Awards Committee for Power Supply Agreements (BAC-PSA) Chairman Lawrence S. Fernandez, 3 bidders participated in the CSP, each submitting qualification documents, technical proposals, and bid prices.
Following a thorough evaluation, South Premiere Power Corp. (SPPC) emerged as the best bidder, offering the lowest rate for Meralco’s baseload requirement.
SPPC’s bid stood at P7.0718 per kilowatt-hour (kWh) for the entire 1,200-MW requirement, “a rate that demonstrates both competitiveness and value for the consumers.”
Meanwhile, the unincorporated joint venture of Limay Power Inc. and San Roque Hydropower Inc. offered a close second best, with a bid of P7.1006 per kWh for a 150-MW capacity.
First Natgas Power Corp. (FNPC) proposed a rate of P8.4489 per kWh for 210 MW. Notably, except for FNPC, all other offers were below the P7.1538 per kWh reserve price set for this CSP.
The process encouraged the participation of suppliers with indigenous natural gas-fired power plants.
In compliance with Department of Energy (DOE) Department Circular No. DC2023-06-0021 and Energy Regulatory Commission (ERC) Resolution No. 16, Series of 2023, Meralco ensured an open and transparent bidding process, according to Fernandez.
“Meralco, as a highly-regulated entity, has conducted its business in full compliance with the rules and regulations promulgated by the ERC and DOE. All contracts resulting from this CSP will be subject to the regulatory proceedings of the ERC.”
The committee is set to undertake a post-qualification evaluation and recommend the best bid to Meralco’s Board of Directors, preceding the issuance of a Notice of Award.
The upcoming 15-year power supply agreement (PSA) from this CSP is aligned with Meralco’s DOE-approved Power Supply Procurement Plan. This plan accounts for Meralco’s future capacity needs, including the 1,000 MW (net) supply pending resolution under its PSAs with change in circumstance cases.