Meralco declares failed bidding for 260-MW interim peaking power supply
By Alena Mae S. Flores – March 10, 2024, 7:45 pm
from manilastandard.net
Power retailer Manila Electric Co. (Meralco) declared again as failed bidding the competitive selection process for its 260-megawatt interim peaking power supply requirement, after it did not receive any offer.
Meralco said in a report that on March 8, 2024, its bids and awards committee for power supply agreement did not receive any expression of interest, and no prospective bidder purchased the bidding documents.
This is the second round of bidding for the supply, after the first round held on February 26, 2024 failed due to lack of bidders.
“Considering that no expression of interest was received by the BAC-PSA and no prospective bidder purchased the bidding documents for this bidding, pursuant to Section 10(d), Article IV of the ERC CSP Guidelines, the bidding is considered to have failed,” the report read.
Meralco vice president and head of utility economics Lawrence Fernandez said the 260-MW peaking supply would be needed during the dry months.
He said they were preparing for a negotiated bidding as Meralco would need the additional supply until July 2024.
“If we do not have the 260 MW, then we will have to resort to use up more of the other contracts. If there is nothing available, then we’ll have to get from the spot market,” Fernandez said.
He said the Department of Energy’s projection showed adequate power supply even with the El Nino weather phenomenon.
“There will be enough generation in the Luzon grid, even with El Nino. So, what we’re doing right now is to get contracts so that we won’t have to rely on the spot market,” he said.
Meralco spokesman Joe Zaldarriaga said the company was trying to procure interim power supply contracts not only to secure adequate supply but to also reduce exposure to the spot market.
“We know that historically, during summer months electricity prices go up in the market,” he said.
Meralco asked power suppliers of the 260-MW peaking capacity to ensure 100-percent availability of the contract capacity for 12 hours daily covering the peak hours from 9 a.m. to 9 p.m.
