AboitizPower, San Miguel among 9 gencos in MERALCO auction

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Aboitiz Power Corporation and SMC Global Power Holdings Corporation, the power arm of San Miguel Corporation (SMC), were among the final nine generating companies (gencos) that participated in the Manila Electric Company’s (MERALCO) competitive selection process (CSP) on Wednesday.

Based on a report by the Manila Bulletin, sources from the two gencos confirmed their participation in the bidding, but there was no mention of the scale of their respective bids and price offers. AboitizPower and San Miguel are the country’s largest gencos, based on latest data from the Department of Energy (DOE).

The report also indicated hints that the AC Energy-Solar Philippines joint venture — which recently took off — had plans of joining the CSP.

The CSP’s Third Party Bids and Awards Committee (TPBAC) received the nine bids as of the 9AM deadline on January 27. This was only half of the 18 expressions of interest the power giant received as of November 2020. MERALCO utility economics head Lawrence Fernandez said that some formally declined to participate, while others did not submit the required documents by the deadline.

First Gen Corporation was among the firms that dropped out, according to the Manila Bulletin report.

The nine bids, which offered an aggregate offered capacity of 5,850 megawatts (MW), would be scrutinized by the TPBAC before the price offers of qualified bidders are opened on February 10. Winning bidders will be awarded 20-year power supply agreements with MERALCO, subject to regulatory approvals. MERALCO is holding the CSP to fill up its 1,800MW power requirements beginning 2024.

Aside from Aboitiz and San Miguel, MERALCO PowerGen Corporation (MGen) has constantly looked to join the auction. MGen is MERALCO’s genco subsidiary.

Under the DOE-approved bidding terms, MERALCO was to go for a “stacking option” on the capacity offers. It also allows for flexibility on the technology interested bidders would use.

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