Meralco starts bidding for 660-MW supply

MANILA, Philippines — Manila Electric Co. (Meralco) has started the search for interim power supply deals for its 660-megawatt (MW) requirement to boost supply this coming summer.

Meralco said the Department of Energy (DOE) has issued a certificate of conformity on the terms of reference for the interim power supply agreements (IPSAs) covering its 260-MW peaking requirement and 400-MW baseload requirement this year.

The issuance has allowed the power distributor to commence with the competitive selection process (CSP) for the 660-MW interim supply in preparation for the expected increase in demand during the dry months.

Meralco said the 260-MW and 400-MW IPSAs would be effective until July 2024 and February 2025, respectively.

“The conduct of these CSPs is also in accordance with Meralco’s DOE-approved power supply procurement plan that considers the need for additional available capacities to augment supply to customers through these IPSAs, which will be implemented once approved by the Energy Regulatory Commission,” the company said.

Meralco is inviting interested power generation companies to submit their expressions of interest for both IPSAs by Jan. 15.

Pre-bid conferences for the 260-MW peaking requirement and 400-MW baseload requirement are both scheduled on Jan. 22.

Bid submission deadlines are set on Feb. 26 for the 260-MW peaking requirement and Feb. 27 for the 400-MW baseload requirement.

The Department of Energy earlier said that while 2024 appears to be better supply-wise for the country, the El Niño phenomenon, which would likely persist until the second quarter, could complicate things.

Meralco, the largest electric power distribution company in the country, is also conducting the CSP for its 1,800-MW requirement aimed at meeting the growing demand of its customers this year.

The 1,800-MW CSP is meant to replace the capacity covered by the company’s 2021 power supply agreements with San Miguel Corp. units Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd. which were terminated earlier this year.

Bid submission deadline and opening of pre-qualification document submissions for the CSP were previously moved from Dec. 27, 2023 to Jan. 5, 2024.

Meralco is likewise conducting a CSP for 1,200-MW baseload power requirement to ensure continued availability of sufficient and reliable supply for its 7.8 million customers.

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

Deadline for bid submission is set on Jan. 23, 2024.

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.