Meralco opens bidding for 1,800-MW power supply in 2024

The Manila Electric Company (Meralco) is opening the competitive bidding for 1,800 megawatts (MW) of its power supply requirement next year, weeks after the Energy Regulatory Commission (ERC) approved the termination of its power supply deals with San Miguel’s power generation units.

In a statement on Thursday, Meralco said it has started the competitive selection process (CSP) for the electricity supply and distribution utility needs to meet the growing demand of its customers.

CSP is a form of competitive public bidding for distribution companies' purchase of electricity.

The company’s opening of CSP for the 1,800-MW power supply came weeks after the ERC gave its go signal for the termination of two power supply agreements (PSAs) with San Miguel Corp. (SMC) Global Power Holdings Inc.’s Excellent Energy and Masinloc Power Partners “on the basis that it’s already lapsing.” 

In 2021, Excellent Energy and Masinloc Power both bagged 20-year contracts for the supply of 1,200MW and 600MW, which would take effect by 2024 and 2025, respectively.

Meralco had earlier said the termination of the two PSAs will not have an impact on its operations.

“This CSP is meant to replace the capacity covered by Meralco’s 2021 PSAs with Excellent Energy Resources Inc. (EERI) and Masinloc Power Partners Co. Ltd. (MPPCL) which were terminated earlier this year,” the company said.

“The Energy Regulatory Commission approved the termination of contracts just last month,” it added.

The start of CSP also came following the Department of Energy’s issuance of a Certificate of Conformity on the Terms of Reference (TOR) for a 15-year contract involving Meralco’s 1800-MW baseload requirement starting December 2024.

“Through its Bids and Awards Committee for power supply agreements (PSAs), Meralco calls on interested power generation companies to participate in the CSP, with the Submission of Expression of Interest due on November 13, 2023,” Meralco said.

The pre-bid conference is scheduled on November 20, 2023, while the bid submission deadline is set on December 26, 2023, it said. —VAL, GMA Integrated News