The Department of Energy (DOE) is crafting a template for the conduct of competitive selection process (CSP) that will be followed by all distribution utilities (DUs).
DOE Secretary Alfonso Cusi said the move hopes to resolve the conflict with the Manila Electric Co.’s (Meralco) plans on the conduct of a CSP for 1,200 megawatts (MW) worth of baseload power.
Meralco is firm on intentions to only solicit bids from greenfield power plants and not to allow bids from existing power plants in the CSP.
“…To avoid these problems, we are coming up with a CSP template. One more thing, the reason why we want to open up the bidding (to all participants) is because of the fact that Meralco is a distribution utility and at the same time owns generation facilities so we want them to have a little different CSP system,” Cusi told reporters on the sidelines of an energy project inauguration in Palawan last week.
“We only want to make it competitive and open to all. (Meralco) want(s) me to approve the TOR (terms of reference) that they’ve submitted but I am also telling them the kind of TOR that I want. They do not want my suggested TOR and I cannot do anything with that,” he said.
But Cusi clarified Meralco can still continue publishing its own version of the TOR provided it will clarify to interested bidders the terms were not approved by the DOE.
Meralco stands firm a “dichotomy” between brownfield and greenfield power plants in the conduct of CSP must be maintained “to provide incentive to build new plants.”
Meralco has relaxed the TOR for the CSP by allowing power plants with a minimum block configuration of 150 MW per unit compared to the previous 600 MW per unit.
It is also open to allowing bidders for capacities that will come from power plants in multiple different locations. However, only a single developer will be selected to supply the entire 1,200 MW.