The Department of Energy (DOE) has granted Manila Electric Co. (Meralco) clearance to conduct a competitive selection process (CSP) for 200 megawatts (MW) of renewable baseload supply, scheduled to begin on January 26, 2026.

According to DOE Undersecretary Mario Marasigan, the upcoming auction will replace Meralco’s terminated baseload supply contract with ACEN Corp. However, he said the distribution utility must first address the recommendations raised by the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC) before it can proceed.

“If Meralco feels that they have already complied with the comments of the PCC and the ERC, then they can proceed,” Marasigan said, while withholding details of the two agencies’ suggestions.

The PCC is reviewing Meralco’s CSPs as part of competition safeguards, following the company’s liquefied natural gas (LNG) partnership sealed in January with San Miguel Global Power and AboitizPower. Through its generation arm, Meralco PowerGen Corp., Meralco invested in LNG-fired power assets and an LNG terminal in Batangas as part of the venture.

Marasigan added that the DOE has also received feedback on Meralco’s two other proposed CSPs—a 600-MW baseload and a 450-MW mid-merit supply—which are currently under review. The 600-MW auction is set for a 15-year term from February 2028 to February 2043, while the 450-MW CSP will involve two delivery tranches starting in 2028 and 2029.

He said the DOE continues to evaluate Meralco’s broader procurement pipeline to ensure competitive pricing and supply reliability, noting that a 900-MW baseload CSP is also being prepared to meet projected demand growth.

Beyond Meralco’s upcoming bids, Marasigan confirmed that the DOE is advancing its nuclear cooperation agreements with the United States and Canada, and is also in talks with Japan and South Korea for additional technology partnerships. He said these will support the country’s readiness once the Philippine Atomic Energy Regulatory Authority (PhilAtom) finalizes its implementing rules and regulations.

Marasigan also said DOE officials are studying capacity-market frameworks and microgrid reforms to strengthen long-term power security, particularly in off-grid areas.

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