San Miguel bags 170MW MERALCO summer supply contract


A unit of SMC Global Power Holdings, San Miguel Corporation’s (SMC) power generation company (genco), will be supplying the Manila Electric Company (MERALCO) with 170 megawatts (MW) of peaking power after being declared as having the lowest bid in the power giant’s competitive selection process (CSP) for the summer season.

South Premiere Power Corporation (SPPC) offered a bid of Php6.8198 per kilowatt-hour (kWh), which is lower than the total delivered headline reserve price of Php7.2989/kWh. The Total Delivered Headline rate includes Value-Added Tax and other charges.

SPPC is the independent power producer administrator of the 1,200MW Ilijan gas-fired power plant in Batangas City.

The San Miguel firm beat Global Business Power Corporation (GBP), which submitted a Php 9.777 per kwh offer, and Aboitiz Power Corporation’s Therma Luzon, Inc., which withdrew its application. GBP is a unit of MERALCO PowerGen Corporation, MERALCO’s genco.

The additional 170MW supply is expected to address the power demand surge during the second quarter. SPPC’s power supply agreement (PSA) would run from February 26 to July 25.

“Upon the issuance of a notice of award, MERALCO will enter into a PSA with SPPC, which will then be submitted for approval by the Energy Regulatory Commission. This PSA will help ensure availability of supply, which is especially critical in the upcoming dry months and the National and Local Elections,” Atty. Jose Ronald Valles, Head of MERALCO’s regulatory management office, said in a statement.

The CSP was conducted by the Third Party Bids and Awards Committee. The decision was based on a pass/fail assessment of the qualification documents for completeness. The committee will be conducting a post-qualification evaluation before issuing the notice of award. 

SMC Global Power also bagged two PSAs for the supply of 1,800MW to MERALCO last year.

Meanwhile, the power giant is waiting for the Department of Energy’s terms of reference for another CSP covering the 180MW baseload supply also needed for the summer months. The company also recently called for bids to challenge Terra Solar’s unsolicited proposal to provide it with 850MW in mid-merit power from renewable energy sources. Terra Solar is a joint venture between Leandro Leviste’s Solar Philippines and Enrique Razon’s Prime Infrastructure Capital, Inc.