Big names in the power sector, including conglomerates San Miguel Corp. (SMC) and Aboitiz Group, showed interest anew in securing another Manila Electric Co. (Meralco) contract, this time for the supply of 400 megawatts (MW) in capacity over a 15-year period.
The power utility firm conducted a prebid conference on Thursday, where six generation firms participated to supply Meralco’s mid-merit requirements. These facilities are gap fillers ready to ramp up capacity in case electricity fluctuates throughout the day.
READ: Meralco opens bidding for 400 MW of supply
The companies were First Gen Corp.’s First Gas Power Corp. and First Natgas Power Corp.; San Miguel Global Power Holdings Corp.’s Masinloc Power Co. Ltd. and Sual Power Inc.; Aboitiz’s GNPower Dinginin Ltd. Co.; and Filinvest Group’s FDC Misamis Power Corp.
“Following the success of our recent [competitive selection process or CSP] for 600 MW of baseload supply where Meralco received very competitive offers, we welcome the continued interest of the country’s major energy players to join this … round that will help us ensure availability of least-cost supply for our customers starting next year,” Meralco bids and awards committee chair Lawrence Fernandez said. Baseload plants fulfill the minimum requirement of a distributor.
Opening of proposals would take place on Oct. 1, the official added. Just like the 600-MW capacity, Meralco expects to receive the supply by August next year.
Earlier this week, the power distributor announced that the units of SMC and Aboitiz Group provided the best bids for its 600-MW power supply requirement. SMC’s Masinloc Power Co. Ltd. gave the best offer at P5.6015 per kilowatt-hour (kWh) total levelized cost of electricity rate (LCOE) for 500 MW. GNPower Dinginin Ltd. Co. of the Aboitiz Group, meanwhile, would be supplying for the 100-MW balance at P5.7392 per kWh.
“We are happy that the main objective of the CSP, which is to secure the least cost supply for our customers, has been achieved,” Meralco senior vice president and head of regulatory management Jose Ronald Valles said.
The group reiterated the process was “in full compliance with government rules and regulations.”