Meralco readies bidding for 3,000 MW to replace terminated supply contracts

By Alena Mae S. Flores – November 1, 2023, 7:30 pm
from manilastandard.net

Power retailer Manila Electric Co. (Meralco) is set to conduct a competitive selection process or bidding for a combined 3,000 megawatts of baseload capacity this year.

Meralco’s 2023 power supply procurement plan involves the conduct of the CSP for 1,200 MW and 1,800 MW of baseload supply.

“Meralco needs both. The 1,200 MW will replace the emergency PSAs that were used to temporarily tide us over the termination of the 2019 PSAs of SMC (San Miguel Corp.),” Meralco head of utility economics Lawrence Fernandez said.

Meralco’s 1,200 MW baseload CSP will replace the terminated South Premiere Power Corp. deal under ERC Case No. 2019-081RC, San Miguel Energy Corp. (now known as Sual Power Inc.) PSA under ERC Case No. 2019-083RC and the failure of negotiations with Solar Philippines Batangas Baseload Corp. for execution of the 200-MW PSA.

The 1,200 MW capacity will have a 15-year contract starting Mar. 26, 2024.

“In accordance with DOE approved PSPP, the CSPs for both will need to start this 2023,” Fernandez said.

He said the DOE asked Meralco to commence the CSP on or before Nov. 15, 2023.

Meanwhile, the 1,800-MW would replace the terminated power supply agreements with Excellent Energy Resources Inc. (EERI) for contract capacity of 1,200 MW and Masinloc Power Partners Co. Ltd. (MPPCL) for 600 MW.

EERI and MPPCL sent notices of termination of the PSAs effective April 1, 2023 after they failed to get regulatory approval during the prescribed period.

The termination was approved by the Energy Regulatory Commission (ERC), prompting Meralco to move forward with preparations for the CSP.

Meralco said it would proceed to include a CSP for the 1,800 MW baseload supply requirement in its revised 2023 PSPP, consistent with the ERC orders dated Sept. 5, 2023.