3 bidders disqualified from MERALCO power auction

Alsons get ERC approval for transmission facility in Mindanao

Three of the nine bidders in the Manila Electric Company’s (MERALCO) competitive selection process (CSP) were disqualified from participating in the auction for the supply of 1,800 megawatts (MW) over a 20-year period.

Based on a report by the Manila Standard, those disqualified were Solar Philippines, AC Energy subsidiary Santa Cruz Solar, and newcomer Kingstone Energy.

Santa Cruz Solar and Solar Philippines are said to have offered hybrid renewable energy projects using technologies that have been proven effective globally. Thus, they are expected to file an appeal before the third party bids and awards committee (TPBAC).

AC Energy and Solar Philippines recently went into a joint venture to develop solar facilities mostly in Central Luzon, which has areas covered by MERALCO’s franchise.

Meanwhile, it is not clear why Kingstone Energy was disqualified despite reports of it having Chinese financiers.

MERALCO utility economics head and TPBAC secretariat Lawrence Fernandez said that they could not divulge the identity of the pre-qualified bidders since the CSP is still ongoing. He said, however, that the results of Wednesday’s pre-qualification stage were reported to the Department of Energy (DOE).

The Standard report also reveals that pre-qualified bidders include San Miguel Corporation’s (SMC) three power generating companies based in Zambales, Bataan, and Batangas. SMC has offered a total of 2,400MW using coal and liquefied natural gas technologies.
Other reported pre-qualified generating companies (gencos) are Aboitiz Power Corporation’s GNPower Dinginin Ltd., St. Raphael Power Generation Inc. of the Consunji Group, and Atimonan One Energy Inc. of MERALCO PowerGen Corporation (MGen).
MERALCO, the country’s largest power distributor, said it decided to move the opening of the bids to February 19 instead of the previously-scheduled February 10 to give bidders more time to appeal.