The Manila Electric Co. (Meralco) has started the competitive selection process (CSP) for an unsolicited proposal covering the supply of 850 megawatts (MW) of mid-merit power for a period of 20 years.
Meralco, through the CSP’s Third Party Bids and Awards Committee, is inviting interested parties to challenge the offer of Terra Solar which proposed a P6.0800 per kilowatt hour headline rate and levelized cost of electricity.
Meralco said Terra Solar’s proposed solar power plants are in Batangas, Cavite, Nueva Ecija, Tarlac and Zambales which will also be equipped with an energy storage system.
A total 600 MW of the power supply will be available by Feb. 26, 2026 while the remaining 250 MW supply is expected to be delivered starting Feb. 26, 2027.
Interested bidders have until Feb. 2, 2022 to submit their expression of interest with a pre-bid conference to be held on February 4. Actual bid submission deadline is on March 7.
Meralco said this CSP is in compliance with the Department of Energy’s (DOE) policy on renewable portfolio standards which mandates distribution utilities to allocate a portion of their supply from renewable sources.
Meralco said this CSP forms part of efforts to source up to 1,500 MW of its power requirements from cleaner energy sources.
Meralco is also calling for two other CSPs intended to secure additional power supply for the summer months.
Meralco is seeking DOE approval for the conduct of a CSP for 180 MW baseload sources or power plants that can provide electricity 24í—7 for the summer season with a proposed contract period from February 26 to July 25 this year.
The DOE has allowed Meralco for a CSP of 170 MW of electricity from peaking power also needed for the summer months.
Based on the peaking CSP’s official bid invitation, the power supply needed should have 100-percent guaranteed availability for 12 hours daily to cover the peak hours of Meralco from 9 a.m. to 9 p.m.
More than one supplier can also win the 170 MW CSP but minimum offered contract capacity per bidder was set at 50 MW.
Meralco said based on initial forecast, peak demand in the Luzon grid this year might reach 12,387 MW expected to occur sometime in May subject to changes especially with the possible effects of the resurgence of the new coronavirus disease 2019 in the country.
Last year, Luzon grid’s peak demand was at 11,640 MW. – J. Macapagal
