Meralco: 3 power firms keen on CSP
BY LENIE LECTURA – JANUARY 11, 2022
from Business Mirror
Three power firms are interested to participate in the competitive auction for the supply of 170 megawatts (MW) to the Manila Electric Company (Meralco).
“The TPBAC [Third-Party Bids and Awards Committee] received expressions of interest from three interested bidders. The aggregate offered capacity totaled 270MW,” Meralco utility economics head Lawrence Fernandez said via text message.
The identities of the interested bidders were not revealed, pending the results of the auction next month.
The committee has scheduled a pre-bid conference on Wednesday. “Everything is so far on schedule for the bid submission and opening on February 2,” said Fernandez.
The power supply contract will cover the period February 26, 2022 to July 25, 2022.
The company thanked the Department of Energy (DOE) last December for the timely approval of the terms of reference for this round of competitive selection process (CSP) that allows the distributor to proceed with the emergency power procurement.
Meralco Head of Regulatory Management Office Jose Ronald V. Valles had said this will “help Meralco ensure availability of reliable and cost-competitive supply, which is especially critical during the 2022 dry months and the upcoming National and Local Elections.”
The company is anticipating a peaking capacity deficit of 260MW, of which 90MW was already secured through the Contract for the Supply of Electric Energy it inked earlier with the Power Sector Assets and Liabilities Management Corp., from September 2021 to July 25, 2022.
The reasons for the deficit include persistent Malampaya gas restrictions, the recently concluded maintenance shutdown of the Malampaya gas facility, and anticipated thinning electricity operating margins leading up to the May 2022 elections.
The need for Meralco to source additional peaking capacity through bilateral power supply contracts is also necessary to reduce customers’ exposure to the Wholesale Electricity Spot Market.
