Meralco lines up 900-MW power supply through 2032

Manila Electric Co. (Meralco) is expanding its long-term power supply portfolio, opening the procurement of another 900 megawatts (MW) of baseload capacity to meet the growing electricity needs of its customers through 2032.

In a statement Tuesday, Meralco said it had started the Competitive Selection Process (CSP) after the Department of Energy issued a Certificate of Conformity on the terms of reference for the power supply agreements (PSAs) covering the requirement.

The 15-year contracts will provide 600 MW beginning 26 February 2031, followed by another 300 MW starting 26 February 2032, subject to approval by the Energy Regulatory Commission.

Through its Bids and Awards Committee for PSAs, Meralco called on power generators to submit expressions of interest by 15 October.

The pre-bid conference is scheduled for 6 November, while bids are due on 9 December.

Meralco said the procurement would allow it to “secure sufficient and reliable power supply to meet the growing electricity needs of its customers.”

The latest auction extends Meralco’s long-term supply contracting after the utility recently secured the best offers for another 600 MW of baseload capacity that will begin serving customers in 2028.

Mariveles Power Gen Corp. (MPGC), Sual Power Inc. (SPI), and GNPower Mariveles Energy Center (GMEC) emerged with the lowest offers in that CSP, each accounting for 200 MW of the requirement.

MPGC submitted the lowest total levelized cost of electricity at P5.3573 per kilowatt-hour (kWh), followed by SPI at P5.4357 per kWh.

GMEC initially offered the entire 600-MW requirement at P5.5789 per kWh before reducing its offered capacity to 200 MW, allowing the three bidders to split the requirement evenly.

All offers were inclusive of value-added tax and a capped line rental charge.

The resulting 15-year PSAs will cover an initial 300 MW beginning 26 February 2028 and another 300 MW starting 26 February 2029, giving Meralco contracted baseload supply extending into the next decade.