Meralco attracts 3 bidders for 500-MW renewable energy supply

The Manila Electric Company (Meralco) on Thursday announced it has secured three bids to supply 500 megawatts (MW) of renewable energy requirement.

In a statement, Meralco said three power generation companies submitted bids through the government-mandated competitive selection process (CSP) of the distribution utility.

The power distributor said San Roque Hydropower Inc. (SRHI), Gigasol3 Inc., and Santa Cruz Solar Energy Inc. (SCSEI) submitted qualification documents, technical proposal, and bid price at the did submission deadline on July 17, 2024.

Meralco said the Bids and Awards Committee for Power Supply Agreements (BAC-PSA) announced that SRHI submitted the lowest total headline rate of P7.1000 per kilowatt-hour (kWh) for 340 MW of the total requirement.

Gigasol3 offered P8.1819 per kWh for 139 MW of the requirement, while SCSEI cornered the remaining 21-MW requirement at a rate of P8.1998 per kWh.

Meralco said all offers it received were below the P8.2380 per kWh reserve price set for the CSP.

The power distributor said the submissions underwent a stringent pass/fail completeness assessment and pre-qualification evaluation. The company said the CSP’s BAC-PSA is also set to conduct a post-qualification evaluation and submit its recommendation and report to Meralco’s Board of Directors for approval prior to the issuance of Notices of Award.

The conduct of the CSP is in accordance with the Department of Energy’s (DOE) Department Circular No. DC2023- 06-0021 and Energy Regulatory Commission (ERC) Resolution No. 16, Series of 2023.

“As a highly regulated entity, Meralco has conducted its business in full compliance with the rules and regulations issued by the ERC and DOE,” said Meralco BAC-PSA chairman Larry Fernandez.

To further ensure transparency, Meralco said representatives from the DOE and consumer groups were present during the CSP as observers.

It added that the proceedings were also streamed live, and all contracts resulting from this bidding process shall be subjected to regulatory proceedings and evaluation by the ERC.

Meralco said 10-year PSA resulting from the CSP will cover its 350-MW mid-merit requirement starting February 2025 and will increase by 150-MW beginning February 2026.

As part of its long-term sustainability strategy, the power distributor said it has already contracted 1,880 MW of renewable energy capacity from various suppliers—exceeding its initial target of 1,500 MW.

Meralco said renewable energy is expected to account for 22% of its supply portfolio by 2030.
—RF, GMA Integrated News