SMC, ACEN bid for power deals

The Manila Electric Co. (Meralco) has received competitive bids from the power units of San Miguel Corp. (SMC) and ACEN Corp. for the 500 megawatts (MW) of renewable energy supply it requires starting next year.

In a press statement on Thursday, Meralco said San Roque Hydropower Inc. (SRHI), owned by SMC, and Gigasol3 Inc. and Santa Cruz Solar Energy Inc. (SCSEI), both owned by ACEN,  offered the best bids.

The Bids and Awards Committee for Power Supply Agreements (BAC-PSA) said that SRHI had submitted the most competitive total headline rate of P7 per kilowatt-hour (kWh).

The rate will apply to 340 megawatts (MW), which constitutes a portion of the total requirement.

Meanwhile, Gigasol3 offered P8.18 per kWh for 139 MW of the requirement, while SCSEI cornered the remaining 21-MW requirement at a rate of P8.20 per kWh.

Lower than index price

Based on the information provided by the BAC-PSA, all offers submitted for this Competitive Selection Process (CSP) were lower than the predetermined reserve price of P8.24 per kWh.

The 10-year Power Supply Agreement resulting from this CSP will cover Meralco’s 350-MW mid-merit requirement starting February 2025 and will increase by 150 MW by February 2026.

“As a highly regulated entity, Meralco has conducted its business in full compliance with the rules and regulations issued by the ERC and DoE,” Meralco BAC-PSA chairperson Larry Fernandez said.

Following a rigorous Pass/Fail completeness assessment, the submissions were subjected to a pre-qualification evaluation. 

The BAC-PSA will conduct a post-qualification evaluation, present its recommendations and report to Meralco’s Board of Directors for approval before issuing Notices of Award.

Meralco is required by government regulators 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.

As part of its long-term sustainability strategy, Meralco has already contracted 1,880 MW of renewable energy capacity from various suppliers — exceeding its initial target of 1,500 MW.