The Manila Electric Co. (Meralco) has secured 1,800 megawatts (MW) worth of power supply at the end of a competitive selection process (CSP) last week.
From six qualified bid offers, the CSP’s Third-Party Bids and Awards Committee (TPBAC) found two offers to be the “best” among the lot.
The two bids were from Excellent Energy Resources Inc. with a levelized cost of electricity (LCOE) of P4.1462 per kilowatt hour (kWh) for 1,200 MW from a natural gas-fired power plant and Masinloc Power Partners Co. Ltd. for P4.2605 per kWh for 600 MW from a coal-fired power plant.
Their offers were below the LCOE reserve price of P5.2559 per kWh.
Three other offers not selected but qualified as “possible next best bids” were from Mariveles Power Generation Corp. for P4.3321 per kWh, Atimonan One Energy Inc. for P4.6338 per kWh and GNPower Dinginin Ltd. Co. for P5.2500 per kWh.
The only bid which failed to meet the reserve price was from St. Raphael Power Generation Corp. with its P5.4426 per kWh offer.
The best bids are undergoing post-qualification proceedings before the TPBAC can issue notices of award in favor of those which can pass the final evaluation.
TPBAC chairman Ferdinand Domingo said the CSP was conducted in full compliance with rules and regulations of the Department of Energy (DOE)which also reviewed the terms of reference.
All contracts from the CSP will be subject to regulatory proceedings and evaluation of the Energy Regulatory Commission.
“We will continue to work with the energy industry, government and other stakeholders to serve the country’s energy needs. As evidenced in the past, a successful CSP and the resulting PSA (power supply agreement) signings will result in additional savings and ultimately, least cost to consumers,” said Lawrence Fernandez, Meralco vice president and head of utility economics department.
Fernandez said because of successful CSPs, Meralco customers last year experienced a net rate reduction of P1.3870 per kWh, equivalent to bill reduction of more than P277 for a 200 kWh household.