Manila Electric Company (Meralco) said it has revised portions of its 2026 Power Supply Procurement Plan (PSPP) after delays in the approval process for several Competitive Selection Processes (CSPs), affecting planned baseload and mid-merit power procurement activities.

During its first-quarter 2026 financial and operating results briefing, Meralco officials said the company had to revisit and realign procurement schedules because the Department of Energy (DOE) had yet to approve the Terms of Reference (TORs) for multiple CSPs previously included in its 2025 procurement plan.

“These were all part of what the Department of Energy approved in the PSPP, or Power Supply Procurement Plan, for 2025. But since they did not issue the TOR, and the delay in approval, we had to redo everything. We have to make adjustments on the timing of the CSP,” said SVP and Head of Regulatory Management Jose Ronald Valles.

Among the major revisions, Meralco said the implementation of its 600-megawatt baseload CSP would initially cover only 300 MW during the first year, with the remaining 300 MW to follow in succeeding years.

Meanwhile, the start date for the planned 900-MW baseload CSP was moved from 2030 to 2031, while its first-year implementation was reduced from 900 MW to 600 MW.

Meralco also reduced the capacity of its planned mid-merit CSP from 450 MW to 400 MW and deferred its implementation to 2030. Another 500-MW mid-merit CSP was moved from 2032 to 2034. The company likewise added a new 400-MW baseload CSP requirement under the revised plan.

Competitive Selection Processes are the bidding mechanisms used by distribution utilities to procure future electricity supply. These processes determine which generation companies will supply power to utilities such as Meralco and influence future electricity costs, supply security, and the country’s generation mix.

The revised procurement schedules come as Meralco and its generation arm continue navigating volatile global fuel markets and evolving energy supply requirements.

During the briefing, Meralco officials also acknowledged the growing role of liquefied natural gas (LNG) in the country’s future power supply mix as new coal development becomes increasingly difficult.

“And today, because we cannot build coal anymore, wala tayong choice hindi magtayo ng LNG plant. Kaya yun yung nagpapamahal sa kuryente,” said Executive Vice President and Chief Operating Officer Ronnie Aperocho during the discussion on future supply requirements and market conditions.

The company said it remains focused on ensuring reliable and secure supply for its franchise area while balancing baseload, mid-merit, renewable energy, and battery storage developments in its long-term procurement strategy.

The CSP revisions also come amidst broader discussions in the power sector on supply adequacy, reserve requirements, and the impact of fuel price volatility following recent geopolitical tensions in the Middle East.

How should the Philippines balance future power supply needs as coal development slows and LNG demand grows?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.