Power retailer Manila Electric Co. will bid out again 1,200 megawatts of power requirement on Feb. 17, 2020 in compliance with the competitive selection process of the Department of Energy.
Meralco, in a new invitation to bid, called on interested parties to participate in the competitive bidding for the supply of 1,200 MW of baseload capacity for 20 years starting 2024.
The company held the first bidding for the 20-year 1,200-MW baseload requirement on Sept. 10, but declared a failure after only one company submitted a bid.
Meralco’s third-party bids and awards committee scheduled the submission of expression of interest on Jan. 13. It said it would declare a failure of the bidding process if less than two parties expressed interest in the auction.
“Offered contract capacity per bidder shall only be by discrete 600 MW [net] blocks. An interested bidder shall submit a bid price containing its headline rate [proposed price using 2020 indices and prices] and its levelized cost of electricity,” the company said.
The power distributor said the bidder should make available the full contract capacity by September 2024, with an option by Meralco to take available energy up to 1,200 MW at commissioning energy charge starting September 2023.
Meralco said the bidders, in case they will offer multiple units, should have a minimum of 150 MW per unit and have the same fuel type and guaranteed net plant heat rate.
“Bidder shall offer fuel source from a technology that complies with the prevailing emission standards under pertinent DENR [Department of Environment and Natural Resources] issuances on emission and other environmental standards for power plants,” it said.
Meralco said that no capacity and electrical output, to the extent of contract capacity, of the plant would be contracted under an agreement apart from its power supply agreement.