Six power generation firms keen on Meralco’s 400-MW CSP

Six power generation firms have expressed interest in the competitive selection process (CSP) for the 400-megawatt (MW) supply requirement of Manila Electric Company, the power distributor said Thursday.

According to Meralco, First Gas Power Corp., First Natgas Power Corp., FDC Misamis Power Corp., GNPower Dinginin Ltd. Co., Masinloc Power Co. Ltd., and Sual Power Inc. participated in the pre-bid conference on Thursday, August 29.

The power supply agreement (PSAs) for the 400-MW mid-merit requirement is targeted to start on August 26, 2025, pending the review and approval process of the Energy Regulatory Commission (ERC) prior to implementation.

This comes as Meralco earlier this week secured offers for its 600-mW supply requirement from two power generation firms under another CSP — Masinloc Power Co. Ltd. which offered P5.6015 per kWh for 500-MW capacity, and GNPower Dinginin Ltd. Co. for the remaining 100-MW requirement at P5.7392 per kWh, both lower than the P7.2609 per kWh reserve price.

“Following the success of our recent CSP for 600 MW of baseload supply where Meralco received very competitive offers, we welcome the continued interest of the country’s major energy players to join this CSP round that will help us ensure availability of least-cost supply for our customers starting next year,” Meralco Bids and Awards Committee chairman Lawrence Fernandez said in an emailed statement.

“We are happy that the main objective of the CSP, which is to secure the least cost supply for our customers, has been achieved. We hope that there will be no further delays as we work towards immediate signing of the PSAs resulting from the 600 MW CSP,” Meralco senior vice president and Regulatory Management head Jose Ronald Valles said.

Meralco constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Pampanga, and Quezon.

The firm counts as subsidiaries and associates Vantage Energy Solutions and Management Inc. and MeridianX Inc., acting as retail electricity suppliers in Luzon and the Visayas. 

The company is optimistic to hit a core net income of at least P40 billion in 2024, as it believes it can sustain the growth it recorded in the first quarter of the year.—AOL, GMA Integrated News