Meralco seeks DOE nod for power supply auction

BY LENIE LECTURA – MARCH 17, 2022
from Business Mirror

THE Manila Electric Co. (Meralco) has sought the green light of the Department of Energy (DOE) to proceed with the competitive selection process, or CSP, for the procurement of 180 megawatts (MW) of baseload supply needed for the dry months.

The utility firm said the DOE has approved the terms of reference (TOR) for the competitive bidding on May 4.

“Through its Third Party Bids and Awards Committee (TBPAC), Meralco is inviting all interested parties to submit their offers for the contract. It will be effective upon the issuance of notice of award and approval of the Energy Regulatory Commission (ERC) until July 25, 2022,” the listed firm said.

Interested bidders have until March 31 to submit their Expressions of Interest. A pre-bid conference will be held on April 7, while bid-submission deadline will be on May 4.

Under the TOR, the minimum offered contract capacity per bidder is at least 50MW.  The winning bidder should supply Meralco starting March 26 up to July 25 this year.

Forming part of the 350-MW power requirement that Meralco needs to augment available supply during the summer months, this 180-MW supply is meant to cover for the output of plants that are affected by Malampaya facility’s continued inability to supply adequate natural gas fuel. Last February, Meralco entered into a power supply agreement (PSA) with South Premiere Power Corp. (SPPC) following the CSP for the initial 170-MW of peaking power requirement. The PSA is now with the ERC for approval.