Meralco launches bid for 600 MW under 3,100-MW supply plan

MANILA Electric Co. (Meralco) has launched a bid to procure 600 megawatts (MW) of baseload capacity as part of a broader plan to secure 3,100 MW of power supply for its projected requirements through 2049.

In a statement on Wednesday, Meralco said the bidding seeks to secure a 15-year power supply agreement covering an initial 300 MW by Feb. 26, 2028, with an additional 300 MW to be supplied a year later. The staggered supply schedule aligns with the company’s projected demand growth and long-term supply planning requirements.

Baseload power refers to electricity generated continuously to meet minimum demand levels on the grid.

The procurement will be conducted through a competitive selection process (CSP) after the Department of Energy (DoE) issued a certificate of conformity allowing the power distributor to proceed with the bidding following more than a year of review. The certificate is required before distribution utilities can conduct a CSP under DoE rules.

The CSP also forms part of Meralco’s latest Power Supply Procurement Plan (PSPP), which has been approved by the DoE.

Under the terms of reference, the bidding is open to all generation technologies that meet the technical and commercial requirements.

Meralco is inviting power generation companies to submit expressions of interest for the CSP by July 14. The pre-bid conference is scheduled for July 28, while the deadline for bid submissions is Sept. 1.

“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 S. Fernandez, chairman of Meralco’s Bids and Awards Committee for Power Supply Agreements.

Distribution utilities conduct CSPs to procure electricity through a competitive process aimed at securing power supply agreements at least cost.

CSPs were adopted to promote transparency and competition in power procurement and help ensure that consumers receive electricity at least-cost rates.

Under its approved PSPP, Meralco plans to launch a series of CSPs to procure a total of 3,100 MW of baseload and intermediate capacity to meet projected supply requirements from 2028 to 2049. The procurement plan is intended to ensure adequate supply for Meralco’s franchise area amid growing electricity demand from residential, commercial, and industrial customers.

Meralco is the country’s largest private electric distribution utility, serving more than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.

Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera