The Manila Electric Company (Meralco) has secured the best bids for 1,800-megawatt (MW) supply from three generation companies through the government-mandated Competitive Selection Process (CSP) of the distribution utility.
At the Bid Submission Deadline last January 5, four (4) of the six (6) bidders that expressed interest to participate in the CSP submitted their qualification documents, technical proposal, and bid price.
During the Bid Opening on the same day, the Bids and Awards Committee for Power Supply Agreements (BAC-PSA) announced that GNPower Dinginin Ltd. Co. (GNPD), Mariveles Power Generation Corporation (MPGC), and Excellent Energy Resources, Inc. (EERI) submitted the lowest offers for Meralco’s future baseload requirement.
GNPD offered a total levelized cost of electricity (LCOE) rate of PhP6.8580 per kilowatt-hour (kWh) for 300 MW of the total requirement, while MPGC offered Php 6.9971 per kWh LCOE for another 300 MW of supply. EERI, meanwhile, put in the bid for the biggest 1,200-MW supply at Php 7.1094 per kWh LCOE.
Masinloc Power Co. Ltd. (MPCL), the other generation company that participated in the bidding, offered for 300 MW at a rate of Php 7.1417 per kWh. However, with EERI’s bid completing the required 1,800 MW total supply requirement, MPCL’s bid was designated as a possible next best bid.
All offers received were below the reserve prices set for this CSP, according to the BAC-PSA.
All submissions underwent a very stringent Pass/Fail completeness assessment and pre-qualification evaluation, and the BAC-PSA is also set to conduct a post-qualification evaluation and submit its recommendation and report to Meralco’s Board of Directors for approval of the best bids as the winning power suppliers prior to the issuance of Notices of Award.
“The Meralco BAC-PSA has fully complied with its mandate to conduct the bid in an open and transparent manner to achieve the least cost of electricity in accordance with the Department of Energy’s (DOE) Department Circular No. DC2023- 06-0021, Series of 2023 and Energy Regulatory Commission (ERC) Resolution No. 16, Series of 2023,” Meralco BAC-PSA Chairman Lawrence S. Fernandez said.
“As a regulated entity, Meralco has conducted its business in full compliance with all rules and regulations issued by the ERC and DOE. The Terms of Reference’s (TOR) conformity to Meralco’s Power Supply Procurement Plan were likewise reviewed and approved by the DOE and, in the process of the Bidding, was updated to consider the recommendations of ERC Chairperson Monalisa C. Dimalanta. To further ensure transparency, proceedings were streamed live, and all contracts resulting from this bidding process shall be subjected to regulatory proceedings and evaluation by the ERC,” he added.
The resulting PSAs from this CSP cover Meralco’s future baseload requirement for a 15-year period beginning December 2024. This CSP was meant to replace the capacity covered by Meralco’s 2021 PSAs that were terminated in 2023 after regulatory approval.
