Manila Electric Co., the biggest retailer of electricity, on Monday issued another invitation to bid for the supply of 1,200 megawatts of power over a 20-year period from March 2024.
Meralco, in a published invitation to bid, said it asked qualified bidders to join the competitive auction for the 1,200-MW supply.
This is the second public notice of Meralco to comply with the competitive selection process, or the public bidding mandate of the government, in procuring supply.
Meralco earlier published an invitation on Friday for another 1,200-MW capacity for 10 years. It is set to publish another invitation for 500 MW capacity this week.
Under the terms of reference, Meralco said it was seeking bids for a base load supply whose power plant is expected to start commercial operations “not earlier than scheduled commercial operations date.”
Meralco set the commercial operations date for the plant by March 2024 for the first unit and full contract capacity by September 2024.
In case the plant has four units, Meralco said two units must attain commercial operations by March 2024.
Meralco said there should be a maximum of two plant sites (with one delivery point for purposes of settlement and transfer risk and loss) and the delivery point should be within the Luzon grid and nearest to Meralco’s load center.
“If multiple units, minimum of 300 MW per unit, which shall have the same fuel type, and guaranteed net plant heat rate. Bidder shall offer fuel source from high-efficiency, low emission technology,” it said.
Meralco said no capacity or output of the plant should be contracted apart from the supply agreement with the retailer.
Meralco said the power plant’s outage allowance should not surpass30 days and maintenance schedule must not exceed 20 days and not more than four times during the contract period. Forced outage allowance should also not exceed 15 days.
The power supplier will also procure replacement power for delay in the commercial operations date.
In the event of delay in the commercial operations date of the plant, Meralco said the parties should meet and confer about the terms on which the PSA may be continued.
“If agreement is not reached within 60 days of the delay limit date, the PSA may be terminated by Meralco and the performance security may be forfeited,” it said.
Meralco said the contract capacity might be reduced by reason of the implementation of retail competition and open access, Renewable Energy Law and other laws and legal requirements.