Meralco preps for anticipated El Niño in 2024

MANILA, Philippines — Manila Electric Co. (Meralco) aims to secure additional power supply agreements in preparation for the summer months of 2024, which are expected to be impacted by the El Niño weather phenomenon.

Meralco senior vice president and regulatory management head Jose Ronald Valles said the company recently filed with the Department of Energy (DOE) the terms of reference (TOR) for the planned procurement of 400-megawatt (MW) and 250-MW supply requirements.

“The 400 MW is a one year interim power supply agreement or IPSA,” Valles said.

“Then there’s another one for peaking, it’s 250 MW. That’s for five months, February 26 until July,” he said.

Valles said Meralco is targeting to have the bid submission for both power supply requirements by the last week of January next year, subject to the DOE’s approval.

“That is not yet definite because we’re waiting for the DOE approval on the TOR. And we’re hoping that the DOE will approve as soon as possible so we can make the target definite,” he said.

Valles said these supply procurements could help shield its customers from volatile and potentially high spot market prices during the summer months.

“We don’t want to speculate what the prices of WESM will be at the point in time, but the likelihood is it would be slightly higher,” Valle said.

“That’s the reason why we have filed already the TOR for the IPSA and the 250-MW peaking to address what we see as potential shortage in supply during the summer period,” he said.

Meralco, largest electric power distribution company in the country, is currently conducting the competitive selection process (CSP) for its 1,800-MW requirement aimed at meeting the growing demand of its customers starting next year.

The CSP is meant to replace the capacity covered by the company’s 2021 power supply agreements with San Miguel units Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd. which were terminated earlier this year.

The contract is for a 15-year power supply agreement/agreements which will be effective once approved by the Energy Regulatory Commission.

Meralco provides electric service within its franchise area coverage which includes Metro Manila, all of the provinces of Rizal, Cavite and Bulacan, and parts of the provinces of Pampanga, Batangas, Laguna and Quezon.