San Miguel Corp.’s South Premiere Power Corp. (SPPC) submitted the lowest bid for the contract to supply 170 megawatts (MW) the Manila Electric Co. (Meralco) with peaking power at a competitive selection process (CSP) held yesterday
The third-party bids and awards committee (TPBAC) overseeing the CSP declared SPPC’s offer of P6.8198 per kilowatt hour (kWh) as the best bid which was also below the P7.2989 per kWh total delivered headline reserve price of the bidding.
Meralco said Global Business Power Corp., through subsidiaries Panay Energy Development Corp., Toledo Power Co., and Panay Power Co., submitted a P9.7777 per kWh offer, exceeding the reserve price set for the bidding.
Therma Luzon Inc. which initially expressed interest for the CSP, withdrew its participation.
Ferdinand Domingo, TPBAC chairman, said SPPC’s offer will be subjected to a post-qualification evaluation prior to the issuance of the notice of award.
The 170 MW electricity in this CSP involves a contract from February 26 to July 25, 2022 to ensure sufficient, reliable and cost-competitive supply for the summer months when demand is usually high.
Based on the peaking CSP’s official bid invitation, the power supply needed should also have 100- percent guaranteed availability for 12 hours daily to cover the peak hours of Meralco from 9 a.m. to 9 p.m.
“Upon the issuance of a notice of award, Meralco will enter into a power supply agreement (PSA) with SPPC, which will then be submitted for approval by the Energy Regulatory Commission. This PSA will help ensure availability of supply, which is especially critical in the upcoming dry months and the national and local elections,” said Jose Ronald Valles, Meralco head of regulatory management office, in a statement.
Apart from this round of CSP, Meralco is also awaiting for the DOE’s approval of the terms of reference for another CSP covering 180 MW from baseload sources or power plants that can provide electricity 24×7 that will also be needed this coming summer.
