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Meralco gets 23 offers for 2,900-MW supply

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Power retailer Manila Electric Company said it received 23 offers during the competitive selection process on the supply of 2,900 megawatts.

Meralco is bidding out three supply contracts including a 500-MW mid-merit capacity for five years, 1,200-MW greenfield or newly-built capacity for 20 years and 1,200-MW brownfield or existing capacity over a 10-year period.

“Eleven submitted expressions of interest for the CSP for the 1,200-MW baseload requirement, effective Dec. 26, 2019 with an aggregated offered capacity of 2,830 MW,” Meralco utility economics head Lawrence Fernandez said.

Meralco published the invitation to bid for the 10-year supply of 1,200 MW capacity.  Bidders were asked to supply Meralco with the said capacity starting Dec. 26, 2019 to Dec. 25, 2029. 

Under the bidding rules, the supply should come from a baseload (firm and dispatchable) power plant or single or portfolio of plants.

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The power retailer said the minimum capacity offer per bidder should be 200 MW.  It set the bid submission deadline on or before 9 a.m. of Sept. 9

The eleven bidders are Phinma Energy, Energy Development Corp., Quezon Power, Solar Philippines, Southwest Luzon Power. Therma Luzon, AP Renewables, Masinloc Power, San Miguel Energy, South Premiere Power and SMC Consolidated. 

“Meanwhile, eight submitted EOI for the CSP for the 500-MW mid-merit requirement, also effective Dec. 26, 2019, with an aggregate offered capacity of 1,200 MW,” said Fernandez.

Meralco issued a notice for the supply of 500 MW of power capacity for its mid-merit requirements over a five-year period where the minimum capacity offer per bidder should be at least 100 MW.

Meralco said bidders should be able to start supplying the 500-MW mid-merit capacity requirement by Dec. 26, 2019 from a single or portfolio of power plants that adjust output according to fluctuations in demand.

The bidder should ensure 100-percent plant availability.  Meralco said that in case the winning bidder failed to provide power from its plants, spot market or other sources, the supplier would pay a fine of P908 multiplied by each megawatt-hour during a day which should be used to reduce the generation charge of consumers.

Bid submission deadline for the 500 MW mid-merit capacity requirement was on or before 9 a.m. of Sept. 11, 2019.

Meanwhile, the eight interested firms for the 500-MW supply are Team Energy, First Gen Hydro Power, Phinma Energy, Solar Philippines, Therma Luzon, AP Renewables, South Premiere Power and SMC Consolidated.

Fernandez said the four bidders for the 1,200-MW greenfield capacity are First Gen, Atimonan One, Panasia Enegy and Mariveles Power. 

Meralco earlier said it was seeking bids for a baseload 1,200 MW 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.

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