Meralco prepares for 2023 demand
BY LENIE LECTURA – OCTOBER 31, 2022
from Business Mirror
THE Manila Electric Co. (Meralco) will undertake competitive auctions for 480 megawatts (MW) of additional capacity needed for the dry months.
Jose Ronald V. Valles, Meralco First Vice President and Head, Regulatory Management Office, said the utility firm is planning to conduct competitive selection process (CSP) for 180-MW baseload and 300-MW peaking to cover for the summer months of next year.
“We are preparing for the summer months next year,” said Valles adding the supply they identified would be submitted to the Department of Energy (DOE) for approval of the terms of reference (TOR).
In line with the DOE’s plan to increase the minimum level of electricity that distribution utilities should source from renewable energy (RE) to 2.52 percent starting 2023 from the current 1 percent under the Renewable Portfolio Standards (RPS) policy, Meralco has been conducting various CSPs to help meet its commitment to source up to about 1,500 MW of its supply requirements from renewables.
Following two failed rounds of competitive challenge and pursuant to the revised CSP rules, the company negotiated with Terra Solar Philippines Inc. for its unsolicited proposal to supply 850 MW RE to cover Meralco’s mid-merit requirement starting 2026.
The power supply agreement (PSA) has been signed last October 24 and will be submitted for review and approval of the ERC.
Meralco is currently conducting two more CSPs for its RPS compliance. The CSP via competitive challenge for the unsolicited proposal by Ahunan Power Inc. (API) for 500-MW RE to cover Meralco’s mid-merit requirement starting March 2026 is on the second round of the bidding process. The bid submission deadline has been set for November 8, 2022.
Meanwhile, the competitive challenge for the unsolicited proposal of Solar Philippines Batangas Baseload Corp. (SPBBC) involving 200 MW RE to cover Meralco’s baseload requirement starting March 2024 will undergo another round of bidding process after the first one failed due to lack of challengers during the bid submission deadline last October 25.
On Meralco’s PSAs with South Premiere Power Corp. (SPPC) and San Miguel Corp. (SMC), Valles said they continue to supply power under protest without prejudice to the available remedies that they may undertake.
Because of this development, Valles said Meralco told the DOE to put on hold its application to exempt from competitive auction some of the emergency PSAs, or “EPSA,” it forged with some power suppliers.
“Yes, we filed with the DOE a request for a certification of exemption for equivalent capacity of 1070MW to presumably… to cover the 1070MW that will expire; assuming that the ERC (Energy Regulatory Commission) will allow the expiration of those contacts with SMC,” Valles said.
Valles added that “in light of decision of ERC with respect to SMC contracts, we have decided to request DOE to put on hold the evaluation of request because SMC is now supplying power to Meralco at this time.”
