Meralco opens auction for 200-MW baseload

MANILA, Philippines — Industry giant Manila Electric Co. (Meralco) is inviting power producers to bid for 200 megawatts (MW) of baseload supply needed to meet its renewable energy (RE) requirements.

The move follows the Department of Energy’s issuance of a certificate of conformity for Meralco’s proposed competitive selection process (CSP), which involves a four-year power supply agreement (PSA).

The PSA will help Meralco comply with its obligations under the Renewable Portfolio Standards (RPS), which mandates power utilities to source a portion of their supply from eligible RE plants.

“This CSP is consistent with Meralco’s ongoing efforts to expand its supply portfolio sourced from renewable energy sources while securing Meralco’s RPS compliance through a competitive and transparent bidding process,” Meralco regulatory management head Jose Ronald Valles said.

Power generation firms may submit their expressions of interest until Jan. 6, with a pre-bid conference scheduled for Jan. 15. The bid submission deadline, meanwhile, is slated for Feb. 16.

Implementation of the resulting PSA under this CSP will be subject to approval by the Energy Regulatory Commission.

To date, Meralco has contracted 1,536 MW of RE capacity from multiple suppliers, surpassing its initial target of 1,500 MW.

The country’s largest power utility serving over eight million customers in Metro Manila and nearby provinces expects RE to make up 22 percent of its supply portfolio by 2030.

Under existing guidelines, energy utilities like Meralco are required to procure power supply through a transparent, competitive and timely conduct of CSPs to ensure electricity is delivered to end-users at the least cost.

Aside from the 200-MW CSP, Meralco also awaits DOE approval for two other auctions – a 600-MW baseload and a 450-MW mid-merit supply.

Both CSPs are required to meet the forecasted increase in captive demand, according to the company’s approved power supply procurement plan.