Manila Electric Company (MERALCO) has begun its procurement process for the 1,200 megawatts (MW) baseload capacity to guarantee a steady supply of electricity.
The distribution utility (DU) firm called on interested power-producing companies to participate in the competitive selection process (CSP), where DUs are urged to opt for the least-cost electricity supply through a competitive bid.
The pre-bid meeting is scheduled for December 18, hence, companies should submit an expression of interest by December 11. Meanwhile, the deadline for submitting bids is on January 23, 2024.
Companies will compete for the 1,200 MW baseload to substitute the terminated power supply agreements (PSAs) with South Premiere Power Corporation (SPPC) encompassing 670 MW, Sual Power, Inc. (SPI) once known as San Miguel Energy Corporation, for 330 MW, and the 200-MW unsolicited proposal from Solar Philippines Batangas Baseload Corporation (SPBBC).
SPPC oversees the operation of the natural gas-fired power plant in Ilijan, Batangas, while SPI manages the coal power plant in Sual, Pangasinan. Both entities are subsidiaries of San Miguel Global Power Holdings Corporation, the power division of San Miguel Corporation (SMC).
Meanwhile, MERALCO still has an ongoing 300 MW emergency power supply agreement with SPPC, which is until March 25, 2024.
Earlier, MERALCO initiated the bidding process for the 1,800 MW baseload capacity intended to replace the terminated Power Supply Agreements (PSAs) with Excellent Energy Resources, Inc. (EERI) and Masinloc Power Partners Co. Ltd (MPPCL), both terminated earlier this year.
The Energy Regulatory Commission (ERC) granted approval for the termination, as their PSA application exceeded the deadline for approval set by the regulator.
Six entities have shown interest in joining the bidding process, including GNPower Dinginin Ltd. Co., First NatGas Power Corp., SP New Energy Corp., Mariveles Power Generation Corp., Excellent Energy Resources, Inc. (EERI), and Masinloc Power Partners Co. Ltd (MPPCL).
The deadline for bid submissions is December 26.