Three power generation companies (gencos) have expressed interest to participate in the competitive selection process (CSP) for the supply of 170 megawatts (MW) to the Manila Electric Company (MERALCO).
The bidders’ aggregate offered capacity amounted to 270MW, MERALCO utility economics head Lawrence Fernandez said in a BusinessMirror report. The identities of the interested bidders were not disclosed, pending the results of next month’s auction.
The Third-Party Bids and Awards Committee has scheduled a pre-bid conference this Wednesday in preparation for the bid submission and opening on February 2.
Winning bidders will be awarded a power supply contract valid from February 26 to July 25. The said period covers the 2022 automated national elections on May 9. The polls will fall well within the second quarter, which has the highest power demand annually.
MERALCO earlier anticipated a peaking capacity deficit of 260MW, of which 90MW had already been secured through a contracted it inked with the Power Sector Assets and Liabilities Management Corporation, from September 2021 to July 25, 2022.
Among the reasons for the deficit include the persistent Malampaya gas restrictions, the recently concluded maintenance shutdown of the Malampaya gas facility, and anticipated thinning electricity operating margins leading up to the May 2022 elections. Relative to this, Luzon went on Yellow Alert on Monday night and Tuesday.