The Department of Energy (DoE) urges power companies against contracting all their output to the competitive selection processes (CSP).

“(What) I want (is) for the plant not to be 100 percent contracted because we want to build our electricity market,” Energy Secretary Alfonso Cusi told reporters at the sidelines of a forum in Cebu on Monday.

He said, for example, any greenfield plant can opt to contract or sell only up to 50 percent of its total capacity.

“Not — for instance — 300 (megawatts), and all of that 300 MW goes to you. I can give you 200 from this greenfield, and that should be acceptable,” Cusi said.

“(This is) so we can build the electricity market. There will be no reserve if I contract all of that capacity. What will I trade in the market?” he added.

Cusi’s remarks came when asked if he had already reviewed the change of terms of reference (ToR) filed by the Manila Electric Co. (Meralco) for its 1,200-megawatt greenfield capacity.

The DoE would need to clear Meralco’s change of ToR before the latter could rebid the contract for the greenfield capacity.

Once done, the 1,200-MW would complete Meralco’s first batch of CSP which totals 2,900 MW. This comprised of a 10-year 1,200-MW brownfield capacity supply successfully bagged by Phinma Energy Corp., San Miguel Energy Corp., and South Premiere Power Corp.; and another five-year 500 MW awarded to First Gen Hydro Power Corp., Phinma and South Premiere.

Once approved by the Energy Regulatory Commission, the two successful biddings will result in P13.4 billion annual savings for consumers in the next five to 10 years. Both contracts will start in December this year.