Electricity retailer Manila Electric Co. will conduct a competitive selection process or public bidding on 3,920 megawatts of supply, including renewable energy, for its requirements until 2030.
“The forecasted supply considered a capacity allocation for baseload, intermediate and peaking supply requirements that would result in a least cost generation cost for Meralco’s captive customers,” the company said in its power supply procurement plan for 2021 to 2030.
Meralco will bid out about 1,520 MW this year. The power retailer will publish the CSP for 70 MW of baseload supply, 100 MW of renewable energy baseload supply and 850 MW of RE mid-merit supply this month.
The power supply agreement on the 70-MW baseload capacity is due to start next month while the 100 MW RE baseload deal is set to begin in March 2023.
The company will conduct a CSP on 1,000 MW of baseload supply and 200 MW of RE baseload supply next year with publication set in January.
Meralco will also need 1,200 MW of baseload supply starting March 2026 but the company has yet to announce when the CSP will be published. Meralco will also require 850 MW RE mid-merit by March 2026.
Meralco vice president and head of utility economics Lawrence Fernandez said the utility was still waiting for the Department of Energy’s finalization of the amendments to the CSP guidelines.
The amendments include changing the composition of the third-party bids and awards committee, giving one seat to the Department of Energy and rules on unsolicited proposal.
Fernandez said the 70-MW baseload PSA is in compliance to the Supreme Court’s resolution on CSP.
“The PSA, though already being implemented, was among those affected by the SC ruling. Thus, the 70 MW PSA is already being implemented, but will have to be subjected to CSP to comply with the SC decision,” Fernandez said.