The Manila Electric Co. (Meralco) has secured the best bid for 1,200 megawatts (MW) worth of supply under a competitive selection process (CSP).
Meralco said San Miguel Corp.’s (SMC) South Premiere Power Corp. (SPPC) was named as the best bidder after submitting the lowest offer for its baseload requirement.
SPPC offered a total levelized cost of electricity rate of P7.0718 per kilowatt-hour (kWh) for the entire 1,200 MW requirement.
Meralco said the unincorporated joint venture of Limay Power Inc. and San Roque Hydropower Inc.,
submitted the next best bid at P7.1006 per kWh for 150 MW capacity.
First Natgas Power Corp. offered a rate of P8.4489 per kWh for a capacity of 210 MW.
Meralco said all three bidders submitted their qualification documents, technical proposal and bid price on Jan. 23, 2024. All submissions have also passed the criteria contained in the bidding documents and pre-qualification evaluation.
A post-qualification evaluation of the bidders will now be conducted before the winning power supplier could be issued a notice of award, Meralco added.
The resulting 15-year PSA from this CSP which was based on Meralco’s Department of Energy-approved Power Supply Procurement Plan will cover the distribution utility’s future capacity requirements.
Earlier this month, Meralco also completed a CSP for 1,800 MW which was secured from Aboitiz Power Corp.’s GNPower Dinginin Ltd. Co. as well as from SMC’s Mariveles Power Generation Corp. and Excellent Energy Resources Inc.
Meralco is also currently seeking qualified suppliers for another CSP for 660 MW.
Under a CSP, a distribution utility may sign PSAs with generation companies only after calling for and receiving at least two qualified bids. Direct negotiations are permitted with other power suppliers only after at least two failed bidding process.
