Meralco-SPBBC supply deal OK’d

BY LENIE LECTURA – JANUARY 11, 2023
from Business Mirror

THE Manila Electric Co. (Meralco) and Solar Philippine Batangas Baseload Corp. (SPBBC) are now cleared to negotiate for their 200-megawatt (MW) power supply agreement (PSA).

This after the Meralco Third-Party Bids and Awards Committee (TPBAC) declared the second round of Competitive Selection Process (CSP) for the utility firm’s 200-MW baseload energy requirement a failure after the SPBBC’s bid was unchallenged for the second time.

The TPBAC said it did not receive any competitive bids from any challenger during the bid submission deadline on January 10. This was the second time that there have been no challenges to SPBBC’s 200 MW unsolicited proposal.

Since there are no outstanding dispute on the first and second rounds of competitive challenge for the contract, Meralco may enter into direct negotiation for the contract capacity requirement, as provided by the revised CSP rules.

To recall, SPBBC’s offer involves a 20-year contract starting 2024 at P4.65 per kWh at 100 percent capacity factor. Once negotiations are completed, Meralco will enter into a PSA with the original proponent and seek regulatory approval for the contract.

The terms of reference for SPBBC’s 200 MW baseload supply is for 1800 MW solar and 1800-MWh batteries, which would be the world’s first large-scale solar-battery baseload providing 24/7 power.

Solar Philippines has developed this project through its wholly-owned subsidiary, SPBBC, which is part of SPNEC’s asset-for-share swap.

SPBBC will provide the capacity using solar and battery in compliance with Meralco’s Renewable Portfolio Standards (RPS) requirement.