SMC makes best power supply offer to Meralco

MANILA, Philippines  -A subsidiary of conglomerate San Miguel Corp. (SMC) gave the best offer for the 400-megawatt (MW) baseload capacity requirement of distributor Manila Electric Co. (Meralco) that must be available until February 2025 to help meet growing demand.

Meralco on Tuesday said Limay Power Inc. (LPI) offered a rate of P6.2708 per kilowatt-hour (kWh) for the entire baseload requirement. This already includes value-added tax and line rental, according to Meralco.

Baseload refers to capacity and supply that is deployed throughout the business day.

Masinloc Power Co. Ltd., another San Miguel company, offered the next best bid at P6.2957 per kWh for 195 MW.

READ: Meralco calls for more power supply as warm months near

The bids and awards committee of Meralco is set to conduct a postqualification evaluation prior to the issuance of a notice of award.

The power supply agreement will only be implemented upon the approval of the Energy Regulatory Commission.

LPI currently operates a 600-MW coal-fired power plant in Bataan province. The facility started commercial operations in 2017.

The power utility giant sought suppliers for the baseload requirement in January to meet high demand and ensure ample supply for its customers, especially at the onset of the El Niño climate pattern.

READ: Meralco bares best bids for new supply deals

Another 260-MW peaking interim power supply agreement was also up for bidding. However, the only two companies that initially expressed their interest to join had withdrawn, resulting in a failed bidding, Meralco head of regulatory management Jose Ronald Valles said on Monday.

Valles did not disclose why the companies backed out, but noted that they would apply for a second round of bidding with the Department of Energy. INQ