The Manila Electric Co. (Meralco) started the competitive selection process (CSP) for 660 megawatts (MW) of interim supply in preparation for the expected increase in demand during the summer months.
The Department of Energy (DOE) earlier issued to Meralco a certificate of conformity on the terms of reference for the interim power supply agreements (IPSAs) covering the power distriutor’s 260 MW peaking and 400 MW baseload power requirements this year.
The 260 MW and 400 MW IPSAs will be effective until July 2024 and February 2025, respectively, with interested power generation companies required to submit expressions of interest by January 15.
Pre-bid conferences for the 260 MW peaking requirement and 400 MW baseload requirement are scheduled on January 22 while the actual bid submission deadline is set on February 26 and 27, respectively.
Meralco said the conduct of these CSPs is in accordance with the DOE-approved power supply procurement plan that considers the need for additional available capacities to augment supply to customers through these IPSAs, which will be implemented once approved by the Energy Regulatory Commission.
Apart from this 660 MW CSP, Meralco is also in the process of seeking qualified suppliers for a separate 1,200 MW and 1,800 MW worth of CSPs.
Under CSP, a distribution utility may only sign power supply agreements with generation companies only after calling for and receiving at least two qualified bids and will only be allowed to have direct negotiations with other power suppliers only after at least two failed bidding procedures.
