Meralco in talks with power firm for 260-MW deal

By Alena Mae S. Flores – March 31, 2024, 9:35 pm
from manilastandard.net

Power retailer Manila Electric Co. (Meralco) said it is in talks with a power generating company to supply its 260-megawatt interim peaking power supply requirement in the dry months.

“We are asking around who has available capacity. At the moment, only one has expressed interest,” Meralco senior vice president and head of regulatory management Jose Ronald Valles said.

Meralco previously declared as failed bidding the second round of competitive selection process for its 260- MW peaking supply after no offers were submitted.

Meralco said in a report that on March 8, 2024, its bids and awards committee did not receive any expression of interest, and no prospective bidder purchased the bidding documents.

The first CSP round on Feb. 26, 2024 also failed in the absence of bidders.

Meralco vice president and head of utility economics Lawrence Fernandez earlier said the 260-MW peaking supply would be needed in the dry season.

Fernandez said they were preparing for a negotiated bidding as Meralco should secure the additional supply by July.

“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.