Meralco should open CSP to other power plant technology

MANILA, Philippines — Manila Electric Co. (Meralco) should open its competitive selection process (CSP) to all kinds of power plant technology to get the least cost generation charge for consumers.

Allowing power plants with a wide range of technology to join the bidding would allow a level playing field in Meralco’s bid to secure long-term power supply, San Miguel Corp. (SMC) president and COO Ramon Ang said.

The diversified conglomerate has expressed interest in joining Meralco’s CSP. “We want to make an offer, so allow us to join the CSP,” Ang said.

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

Interested bidder PanAsia Energy Inc. withdrew its participation in the bidding process ahead of the bid deadline.

Mariveles Power Generation Corp. of the San Miguel Group submitted a letter stating its withdrawal from CSP, while First Gen Corp. did not submit its bid documents.

Under the terms, Meralco wants the generating companies (gencos) to bid for the whole supply requirement using plants with high efficiency, low emission (HELE) technology.

SMC withdrew from the bidding because circulating fluidized bed (CFB) coal-fired power plants would not meet the strict standards set by Meralco.

“We did not join the greenfield because CFB plants do not meet the requirements. If they will let us join, that’s a level playing field,” Ang said earlier.

Following the failed bidding, Meralco has evaluated its steps to improve the CSP for the 1,200-MW greenfield supply.

It submitted the new terms of reference (TOR) to the Department of Energy (DOE) for its approval, hoping to start and complete the CSP process before the year ends.

However, DOE Secretary Alfonso Cusi said he wants the power distributor to change the terms in its CSP for greenfield capacity by not contracting the full capacity of the genco participating in the bid.

He said any greenfield plant should be able to opt to contract or sell only a part of its capacity to a distribution utility (DU).

This is to allow the remaining capacity to be sold to the wholesale electricity spot market (WESM) for reserves, Cusi said.