Meralco starts search for 10-year RE supplier
Initially, the PSA will provide 350 MW of mid-merit power starting February 2025, to gradually decrease to 150 MW beginning in February 2026
Daily TribuneInitially, the PSA will provide 350 MW of mid-merit power starting February 2025, to gradually decrease to 150 MW beginning in February 2026
(FILES) Electricity distributor Meralco maintained that an early franchise renewal would greatly benefit its millions of customers.
PHOTOGRAPH BY KING RODRIGUEZ FOR THE DAILY TRIBUNE
To help meet its projected demand next year, the Manila Electric Co. (Meralco) has launched the Competitive Selection Process (CSP) for 500 megawatts (MW) of mid-merit renewable energy (RE) capacity.
The power distributor announced the commencement of the CSP on Monday to identify a supplier for a 10-year Power Supply Agreement (PSA).
Initially, the PSA will provide 350 MW of mid-merit power starting February 2025, to gradually decrease to 150 MW beginning in February 2026.
Expressions of Interest
Meralco’s Bids and Awards Committee for PSAs said interested power generation companies should submit Expressions of Interest by 7 June.
The Pre-Bid Conference is scheduled for 17 June, with the Bid Submission Deadline set for 17 July.
Meralco is required by the Department of Energy to boost its reliance on renewable energy sources.
According to Meralco, by 2030, it anticipates renewable energy to make up 22 percent of its energy portfolio.
Long-term sustainability strategy
As part of its long-term sustainability strategy, Meralco has already contracted 1,880 MW of RE capacity from various suppliers — exceeding its initial target of 1,500 MW.
In February, Limay Power, Inc., operated by SMC Consolidated Power Corp., won the PSA with Meralco for a 400-MW interim supply.
The Ramon S. Ang-led company offered a total headline electricity rate of Php 6.2708 per kilowatt-hour, or kWh, inclusive of value-added tax, and line rental, for the entire 400-MW base load requirement.
Next best bid
Another generation company, Masinloc Power Co. Ltd., submitted the next best bid of P6.2957 per kWh, VAT and line rental inclusive, for 195-MW capacity. Both offers are compliant with the P6.3512 per kWh reserve price set for the bidding.
As per the DoE Department Circular DC2023-06-0021, Series of 2023, and Energy Regulatory Commission Resolution No. 16, Series of 2023, CSPs should be conducted openly and transparently.
