The Manila Electric Company (MERALCO) is set to release the revised terms of reference (TOR) for its competitive selection process (CSP) concerning the targeted procurement of 1,800 megawatts (MW) of capacity.
According to the Manila Bulletin, the updated TOR, scheduled for tenders-submission on December 27, came as a response to the recommendations from the Energy Regulatory Commission (ERC) Chairperson Monalisa C. Dimalanta.
Atty. Jose Ronald Valles, MERALCO’s Senior Vice President and Head of Regulatory Affairs, highlighted that the revised TOR includes significant changes, notably capping the maximum offered capacity at 1,200 MW.
While the CSP is still scheduled by year-end for the procurement of 15-year power supply agreements (PSAs) amounting to 1,800MW, Valles mentioned the utility is connecting with the ERC, seeking guidance on whether the bid, opening on December 27, should proceed.
Winning bidders, Valles explained, could potentially offer capacities of 1,200 MW, 600 MW, or smaller increments down to 150 MW, utilizing a ‘capacity stacking system’ detailed in the TOR.
The procurement is prioritizing newer plants that have been in commercial operation since January 2020.
Valles further elaborated that, while the tender process remains technology neutral, in cases of similar price bids, preference might be given to facilities using cleaner fuels like gas over coal or favoring indigenous gas over LNG, following advisories from the Department of Energy (DOE).
Encouraging the use of indigenous fuel, particularly Malampaya gas, has been incorporated into the TOR to promote participation from plants utilizing this resource in the bidding process, aligning with government directives to prioritize such energy sources.
