The Manila Electric Company (MERALCO) has secured the most favorable bids for the 1,800-megawatt (MW) supply from three generation companies through a Competitive Selection Process (CSP).
Of the six interested bidders, only four submitted documents and bid details by the January 5, 2024 deadline.
Every proposal underwent a pre-qualification assessment and evaluation procedure, with the Bids and Awards Committee for Power Supply Agreements (BAC-PSA) set to conduct a post-qualification evaluation and present its findings and recommendations to MERALCO’s Board of Directors for approval of the top bids as the successful power suppliers.
“The Meralco BAC-PSA has fully complied with its mandate to conduct the bid in an open and transparent manner to achieve the least cost of electricity in accordance with the Department of Energy’s (DOE) Department Circular No. DC2023- 06-0021, Series of 2023 and Energy Regulatory Commission (ERC) Resolution No. 16, Series of 2023,” Meralco BAC-PSA Chairman Lawrence S. Fernandez said.
On the same day, the BAC-PSA announced that three companies that submitted the lowest bids, namely, GNPower Dinginin Ltd. Co. (GNPD), Mariveles Power Generation Corporation (MPGC), and Excellent Energy Resources, Inc. (EERI). These companies presented the most favorable proposals for meeting MERALCO’s future base load requirement.
The offers are as follows: GNPD proposed a levelized cost of electricity (LCOE) rate of Php 6.8580 per kilowatt-hour (kWh) for 300 megawatts (MW) of the total requirement. MPGC presented an LCOE of Php 6.9971 per kWh for an additional 300 MW of supply. EERI, on the other hand, submitted the largest bid of 1,200 MW at Php 7.1094 per kWh LCOE.
Meanwhile, Masinloc Power Co. Ltd. (MPCL) entered the bid for 300 MW at a rate of Php 7.1417 per kWh. Despite this, as EERI’s bid satisfied the total supply requirement of 1,800 MW, MPCL’s bid was acknowledged as the next best offer.
With the approval of the ERC, MERALCO’s 2021 PSA concluded last year, and this CSP was intended to replace the capacity it contained.