Meralco starts auction for 900-MW baseload power

MANILA, Philippines — Power utility giant Manila Electric Co. (Meralco) is seeking bidders for a 15-year contract to supply 900 megawatts (MW) of baseload electricity.

The company opened the auction after the Department of Energy issued a certificate of conformity covering the terms of reference for the power supply agreements (PSA) to be awarded.

The PSA resulting from the competitive selection process (CSP) will provide 600 MW of baseload power starting Feb. 26, 2031, followed by an additional 300 MW a year later, subject to approval by the Energy Regulatory Commission.

Baseload power is the minimum amount of electricity needed on the grid to meet constant demand.

Power generation companies may submit their expressions of interest until Oct. 15.

The pre-bid conference is set for Nov. 6, followed by the bid submission deadline on Dec. 9.

“Through the CSP, Meralco continues to secure sufficient and reliable power supply to meet the growing electricity needs of its customers,” the country’s largest power utility said.

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

Earlier this month, Meralco announced that energy firms controlled by tycoons Ramon Ang and Sabin Aboitiz submitted the best bids in its 600-MW power supply auction.

Ang’s Mariveles Power Gen Corp. and Sual Power Inc. offered the lowest bid prices of P5.3573 and P5.4357 per kilowatt-hour, respectively, for 200 MW each.

GNPower Mariveles Energy Center of the Aboitiz Group, meanwhile, initially bid P5.5789 per kWh for 600 MW before reducing its offered capacity to 200 MW, completing the requirement for the auction.

The initial 300 MW of baseload power is targeted for delivery by Feb. 26, 2028, with the additional 300 MW to follow a year later.