Aboitiz keen on supplying power to Meralco via CSP

ABOITIZ Power Corp. will participate in the competitive selection process (CSP) for the Manila Electric Co.’s (Meralco) baseload capacity requirement of 1,000 megawatts (MW) for 2026 to 2046 and 1,200MW for 2030 to 2049.

AboitizPower President Emmanuel V. Rubio said during a forum on Wednesday titled “Ensuring Sustainability of Food and Utilities”—organized by the Economic Journalists Association of the Philippines and Aboitiz—that the second unit of GNPower Dinginin Ltd. Co. (GNPD), which has a capacity of 668MW, could partly supply the 1000MW CSP.

“For 2026, we will participate via GNPD unit 2 that we will be offering for that CSP that’s coming hopefully towards the end of the year or the first quarter of 2022,” said Rubio. Meralco plans to start the publication of the 1,000MW CSP in January 2022.

GNPD’s construction has been pushed back due to the travel restrictions. “Unit2 is behind unit1. We are expecting some delays but we are looking to start commissioning by mid-March 2022,” said Rubio.

GNPD Unit 1, also 668MW, is still in the commissioning stage. Rubio said AboitizPower is expecting for the Energy Regulatory Commission (ERC) to issue the certificate of compliance of GNPD Unit 1 by the third week of September, before the Malampaya gas facility shuts down from October 2 to 22.

For Meralco’s 1,2000MW CSP, Rubio said AboitizPower might offer gas. “Gas is one of the options. If it proves to be the most competitive option by then, we will consider building one.”

At present, the power firm has no gas in its portfolio. But many power firms agree that gas is the transition fuel prior to full decarbonization come 2050.

“Hopefully, greener technology that can be cost competitive and as competitive as gas will be considered for that 2030 delivery of what we know is a 1,200 MW CSP of Meralco. Today, the only visible cost competitive technology that we see is gas.

We don’t think coal will be built given all the pressures on the environment and the lack of financing. But we are not closing our doors on any alternative technology that can provide the same capacity factor that would be cost competitive or more cost competitive than gas.

Gas is just a placeholder because today, that is the most competitive option that we are seeing but we’re are still 9 years away and if there will be an alternative to gas, which is cleaner or more cost-competitive, then we will go for that option and I think there will be,” said Rubio.