The Manila Electric Co. (Meralco) is conducting a competitive selection process (CSP) for 70 megawatts (MW) worth of electricity to be supplied until January 2037.
Power supply deals in the country require CSP which involves the conduct of a bidding to procure the cheapest source of power before an agreement can be made.
Based on the terms of reference (TOR) uploaded in the Department of Energy’s website, the power must come from baseload sources that can be deployed from any intervals under the said CSP that will be needed from Jan. 26, 2022 until Jan. 25, 2037.
The winning bid is not allowed any outage allowance but must provide replacement power from nominated power plants, portfolio power plants or from the wholesale electricity spot market.
The winning bidder must pay for a fine equivalent to P908 million multiplied by each MW hour for each day to lower the generation charge of Meralco customers if no replacement power can be find.
If the third party bids and awards committee of the CSP receives less than two expressions of interest by October 15, the process will be considered a failure which might prompt changes in the TOR.
If enough power providers are collected, opening of bids will be pursued by November 19. – Jed Macapagal
