Meralco starts CSP for 1,200-MW supply

MANILA, Philippines — The Manila Electric Co. (Meralco) has commenced its search for 1,200 megawatts (MW) of baseload power requirement to ensure continued availability of sufficient and reliable supply for its 7.8 million customers.

This followed the issuance of a certificate of conformity on the terms of reference by the Department of Energy (DOE).

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

Meralco is calling on interested power generation companies to participate in the CSP, with the submission of expression of interest due on Dec. 11, 2023.

A pre-bid conference is scheduled on Dec. 18, with the deadline for bid submission set on Jan. 23, 2024.

“This CSP, which was based on Meralco’s DOE-approved power supply procurement plan, is meant to meet the power distributor’s future capacity requirements, including the 1,000 MW (net) supply that was covered by its PSAs with change in circumstance cases that are pending resolution,” the company said.

Pursuant to the DOE’s advisory on the conduct of CSP for power supply using indigenous natural gas as transition fuel, the terms of reference states that “power suppliers with natural-gas fired power plants are highly encouraged to participate in the bidding.”

Further, it provides that operations for the initial 810 MW would be effective on Dec. 26, while additional 200 MW and 190 MW would be effective by Feb. 26 and March 26, 2024, respectively.

Meanwhile, bid submission deadline for Meralco’s CSP for its 1,800-MW power supply requirement aimed at meeting the growing demand of its customers starting next year has been set on Dec. 26.

A total of six bidders have earlier expressed interest to join the CSP. These are GNPower Dinginin, First NatGas Power, SP New Energy, Mariveles Power Generation, Excellent Energy Resources, and Masinloc Power Partners.

Meralco earlier assured that it secures an approval from the DOE of its power supply procurement plan and the terms of reference before conducting a CSP to make sure that these are aligned with the requirements and standards set by the government.

“The CSP is a very transparent process, and the resulting PSAs from this bidding will still be subject to the review and approval of the ERC,” Meralco first vice president and regulatory management head Jose Ronald Valles said.