Department of Energy (DOE) Secretary Alfonso Cusi has approved the revised version of the terms of reference (TOR) for the Manila Electric Copany’s (Meralco) competitive selection process (CSP) for the 1,200 MW goal for its supply portfolio.
Cusi said Meralco already implemented his recommendations on the revised CSP terms.
“Finally, there was a meeting of the mind,” the energy chief was quoted saying in a Manila Bulletin report.
Cusi also noted that the DOE has allowed Meralco to publish its CSP tendering process.
“They asked for authority to publish. When they publish, they can already solicit tenders – so that’s a go,” Cusi said.
Cusi said that the issue in the CSP-TOR was the participation of merchant brownfield generating facilities in Meralco’s supply procurement. He said the newly built plants or those still within their technological cycles shall be allowed to join the auction.
He further explained by saying that if a plant has a life cycle of 25 years and was just operating for the last 15 years, then it is still qualified to bid its capacity for the remaining duration of its life cycle.
“We exchanged views and we suggested and we articulated this and that, so that’s already okay,” Cusi stressed.
He said the “stacking option” has been accepted by Meralco, which stated that the capacity off-take will not be for a bulk single contract of 1,200 MW.
Merchant plants shall also be allowed to participate as it is one of the DOE’s strategies to promote investments for power generating facilities, he added.
“Remember that we are encouraging merchant power plants, so that infrastructure is ahead even without PSA,” the energy secretary pointed out.
Meralco Vice President Lawrence S. Fernandez said the TOR is already for publication, but the company will still meet with the third party bids and awards committee (TPBAC) “to formally obtain their approval to publish.”
“We also need to confirm their availability to set the schedules for the pre-bid conference and the opening of bids,” Fernandez said.
“These dates will be part of the invitation to bid to be published,” he added.