Aboitiz secures 400-MW Meralco supply deal

GNPower Dinginin Ltd. Co. (GNPD), part of the Aboitiz Group, has won a power supply agreement (PSA) to meet Manila Electric Co.’s (Meralco) 400-megawatt (MW) mid-merit power supply requirement for the coming year.

Following a Competitive Selection Process (CSP) held today, GNDP offered the best bid among the three generation companies that submitted their qualification documents, technical proposals, and bid prices. 

All offers came in below the reserve price of P8.0585 per kilowatt-hour (kWh) for the levelized cost of electricity (LCOE) set for the bidding.

GNPD’s bid of P7.6816 per kWh for the entire 400-MW requirement was declared the best offer. 

Sual Power Inc. followed with a bid of P7.7416 per kWh for 300 MW of supply, while Masinloc Power Co. Ltd. submitted a bid of P7.8567 per kWh for 200 MW.

All submissions met the pre-qualification criteria outlined in the bidding documents, according to Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA).

“This CSP has once again achieved its goal of securing power supply for customers at the least cost through an open and transparent process,” Lawrence S. Fernandez, Chairman of the Meralco BAC-PSA, said.

Consumer groups and other observers were present to witness the bid submissions, and the proceedings were streamed live on Meralco's YouTube channel.

The BAC-PSA will now conduct a post-qualification evaluation before issuing a Notice of Award and executing the PSA with the winning bidder. 

As a regulated entity, Meralco carried out the CSP in full compliance with regulations from the Energy Regulatory Commission (ERC) and the Department of Energy (DOE). 

The resulting 15-year PSA, covering Meralco’s 400-MW mid-merit requirement, will undergo regulatory approval by the ERC before its planned effectivity in August 2025.