Meralco: 6 power gencos to join auction for supply deal
By Lenie Lectura – August 30, 2024
from Business Mirror
Six power generation companies (gencos) have formally expressed interest to supply 400-megawatts (MW) of mid-merit capacity to the Manila Electric Co. (Meralco) for 15 years.
During the pre-bid conference held Thursday, First Gas Power Corp., First Natgas Power Corp., FDC Misamis Power Corp., GNPower Dinginin Ltd. Co., Masinloc Power Co. Ltd., and Sual Power Inc. have indicated their participation in the competitive selection process (CSP) for 400MW of supply, which is intended for delivery starting August 26, 2025.
The bid submission deadline for their bid offers is set on October 1. The competitive auction will undergo the review and approval process of the Energy Regulatory Commission prior to implementation.
“We look forward to the participation of these prospective bidders during the Bid Submission Deadline and Bid Opening scheduled on October 1,” said Meralco Bids and Awards Committee Chairman Lawrence S. Fernandez.
With mid-merit power supply, the gap between baseload and peaking plants is filled.
Aligned with its annual power supply procurement plan approved by the Department of Energy, Meralco conducts open and transparent CSPs in full compliance with government rules and regulations.
Earlier this week, Meralco secured the lowest offers for its 600-MW supply requirement from two power generation companies through another CSP.
Masinloc Power Co. Ltd. offered P5.6015 per kWh for 500-MW capacity, while GNPower Dinginin Ltd. Co. offered to supply the remaining 100-MW baseload requirement at a rate of P5.7392 per kWh. Both offers were significantly lower than the P7.2609 per kWh reserve price set for the bidding. Post-qualification evaluations are ongoing.
“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,” added Fernandez.
Meralco Senior Vice President and Head of Regulatory Management Jose Ronald V. Valles reiterated that the main objective of the CSP is to secure the least cost supply for its customers.
“We hope that there will be no further delays as we work towards immediate signing of the PSAs resulting from the 600 MW CSP. We trust that ERC evaluation and approval will also be swift so customers can enjoy these very low rates upon scheduled delivery date in August 2025.”
