Meralco to rebid 1,200 MW contract

MANILA, Philippines — Manila Electric Co. (Meralco) is rebidding the contract for the 1,200-megawatt (MW) greenfield capacity within the fourth quarter once changes are cleared by the Department of Energy (DOE).

This would complete the first batch of competitive selection process (CSP) of Meralco, which includes the signed contracts for the supply of 500-MW mid-merit capacity with three firms.

Changes in the terms of reference (TOR) would be presented to the DOE first before conducting the bidding, Meralco president and chief executive officer Ray Espinosa said in an interview yesterday.

“We will change some items in the TOR then we will present that to the DOE.  If these are cleared by the DOE, then we can publish our first notice and invitation within the week,” he said.

Meralco conducted the CSP for the 1,200-MW greenfield capacity, but was declared a failed bidding after only Atimonan One Energy Inc., a unit of Meralco Powergen Corp., submitted its offer.

“We want to be able to conclude this well within November or the latest, December,” Espinosa said.

Meanwhile, Meralco signed power supply agreements (PSAs) with First Gen Hydro Power Corp., Phinma Energy Corp., and South Premiere Power Corp. (SPPC) of the San Miguel Group for the supply of 500 MW of mid-merit capacity for five years.

The contracts are subject to regulatory proceedings and evaluation by the Energy Regulatory Commission (ERC), and if approved, would be implemented starting Dec. 26.

First Gen Hydro Power’s contract capacity is for 100 MW with an all-in headline rate (VAT inclusive) of P5.1908 per kwh and computed all-in levelized cost of energy  of P5.3989 per kwh.

Phinma Energy’s contract is for 110 MW at all-in headline rate (VAT inclusive) of P5.5858 per kwh  and computed all-in LCOE (VAT inclusive) of P5.5858 per kwh.

Eric Francia, president and CEO of Phinma Energy, said supply would come from its coal and solar plants.

SPPC’s contract is for 290 MW and has an all-in headline rate (VAT inclusive) of P5.5347 per kwh and computed all-in LCOE (VAT inclusive) of P5.7527 per kwh.

The supply would come from the 1,200-MW Ilijan power plant in Batangas. SPPC has been the Ilijan plant’s independent power producer (IPP) administrator since San Miguel Corp. bagged the independent power producer administration (IPPA) contract in April 2010.

Meralco said the PSAs would result in additional savings and, ultimately, least cost to consumers.