Meralco seeks bids for 600-MW baseload power supply deal

MANILA, Philippines — Power giant Manila Electric Co. (Meralco) has opened the bidding for its 600-megawatt (MW) baseload electricity requirement, aiming to secure a multi-year supply to keep the lights on in its franchise area.

This follows the Department of Energy (DOE)’s issuance of a certificate of conformity, effectively allowing the company to proceed with its proposed competitive selection process (CSP).

The 15-year power supply agreement (PSA) resulting from this CSP will cover an electricity supply of 300 MW starting Feb. 26, 2028, which will then double to 600 MW after a year.

The implementation of the supply deal is subject to the approval by the Energy Regulatory Commission.

“This CSP forms part of Meralco’s continuing commitment to securing reliable, adequate and competitively priced power supply for customers through a transparent and competitive procurement process,” said Lawrence Fernandez, chairman of Meralco Bids and Awards Committee-PSA.

Power generation companies are given until July 14 to submit their expressions of interest for the auction, ahead of the pre-bid conference scheduled on July 28.

The deadline for bid submissions, meanwhile, is set on Sept. 1.

Pursuant to the terms of reference, the CSP will be technology-neutral, allowing all generation technologies that meet the technical and commercial requirements to submit offers.

The auction is expected to ensure that Meralco’s power supply requirements are procured through a transparent process based on least-cost parameters.

This latest CSP is among the first wave of supply procurements under Meralco’s latest DOE-approved power supply procurement plan.

This year, the country’s largest power utility intends to launch another auction in September for a 900-MW baseload requirement, with a delivery period starting in 2031 and a contract term of 15 years.

Also in Meralco’s pipeline is the planned bidding for a total of 1,600 MW of baseload and mid-merit supply from 2028 to 2033.

Baseload supply refers to the minimum amount of electricity needed on the grid to meet constant demand, while mid-merit capacity bridges the gap between baseload and peak generation sources.

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

Currently, Meralco provides electric service to more than eight million customers in Metro Manila and nearby provinces.