Meralco: 4 power firms keen on supply deal

The Manila Electric Co. (Meralco) has received firm interest from four power firms to join the competitive bidding to supply the utility firm 70 megawatts (MW) from January 2022 to January 2037.

Panay Energy Development Corp. (PEDC), Quezon Power Philippines Ltd., Sem-Calaca Power Corp., and Therma Luzon Inc. participated in the pre-bid conference last October 22.

Meralco First Vice President and Head Regulatory Management Office Jose Ronald Valles identified on Monday the four firms that submitted an Expression of Interest (EOI). San Miguel Energy Corp. submitted an EOI but it did not participate in the pre-bid conference.

To provide the bidders more time to submit their queries regarding the bid documents, the Third Party Bids and Awards Committee will conduct a second part of the pre-bid conference within the week. The bid submission and opening of bids will be held on November 19.

Meralco had said the 70MW should be sourced from baseload power plants or those that continuously run on a 24/7 basis.

The competitive selection process (CSP) bid invite states that an annual ancillary service (AS) cost recovery cap, with a floor value of P0.28 per kilowatt hour, will be considered in computing the levelized cost of electricity (LCOE). The bidders’ proposed price and LCOE are subject to a pre-determined reserve price, which will only be revealed by the committee to qualified bidders during the opening of bids.

Valles also said Meralco will be conducting more CSPs for the procurement of 170MW power supply requirements to address future Malampaya gas curtailment and secure adequate supply up to the elections in May 2022.

“We are planning to procure emergency supply of 170MW. We will conduct CSPs accordingly,” he said.

The 170MW of additional capacity forms part of the 260MW Interim Power Supply Agreement with Masinloc Power Planters Co. Ltd. that Meralco wanted to exempt from CSP.

The Department of Energy, however, did not grant Meralco’s request. Instead, the agency told Meralco to tap state-owned Power Sector Assets and Liabilities Management Corp. (PSALM).

Meralco and PSALM eventually agreed on a 90MW power supply deal.

The balance of 170MW, Valles said, will be sourced from other power generation firms.