Meralco CSP attracts 3 bidders

By Lorenz S. Marasigan – July 19, 2024
from Business Mirror

The Manila Electric Co. (Meralco) said on Thursday it has successfully secured bids for 500 megawatts (MW) of renewable energy supply through a competitive selection process (CSP).

The bid attracted offers from three companies: San Roque Hydropower, Inc. (SRHI), Gigasol3, Inc., and Santa Cruz Solar Energy, Inc. (SCSEI).

During the bid opening, SRHI emerged with the most competitive offer, presenting a total headline rate of P7.1000 per kilowatt-hour (kWh) for 340 MW of the required supply.

Gigasol3 proposed P8.1819 per kWh for 139 MW, while SCSEI bid P8.1998 per kWh for the remaining 21 MW. All offers were below the reserve price of P8.2380 per kWh set for this CSP, according to Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA).

According to Meralco BAC-PSA Chairman Lawrence S. Fernandez, the submitted bids underwent “rigorous assessments to ensure completeness and compliance, followed by a pre-qualification evaluation.”

A post-qualification evaluation will be conducted before the BAC-PSA submits its recommendations to Meralco’s Board of Directors for final approval and issuance of Notices of Award.

Fernandez noted that CSP aligns with the Department of Energy’s (DOE) Department Circular No. DC2023-06-0021 and Energy Regulatory Commission (ERC) Resolution No. 16, Series of 2023.

“As a highly regulated entity, Meralco has conducted its business in full compliance with the rules and regulations issued by the ERC and DOE.”

The 10-year power supply agreement (PSA) will commence in February 2025, initially covering a 350-MW mid-merit requirement, with an additional 150 MW starting in February 2026.

For the longer term, Meralco has already secured 1,880 MW of renewable energy capacity, surpassing its initial target of 1,500 MW. By 2030, renewable energy is projected to account for 22 percent of Meralco’s supply portfolio.

Meralco had reported a 9-percent increase in energy sales to 12,307GWh as of end-March this year, mainly driven by higher consumption of residential and commercial segments, the extra day in February, and the continuous recovery of the industrial segment.

It said that hotels, educational institutions, and restaurants had significant consumption upswings due to the sustained increase in in-person events.