By Lenie Lectura - January 6,
2020
The Manila Electric Co.’s (Meralco)
revised bidding rules for the second round of the competitive selection process
(CSP) for 1,200-megawatt (MW) capacity sparked the interest of conglomerate San
Miguel Corp. (SMC) and Ayala Corp.
SMC President Ramon Ang affirmed
over the weekend the company’s strong interest for the upcoming CSP scheduled
next month.
“Yes, we will bid,” said Ang in a
text message when asked if the power unit of SMC will participate in the
competitive bidding.
Ang has been telling Meralco to
allow other power plants to join the bidding because the original terms of
reference (TOR) meant for greenfield power requirement were stringent.
To ensure a successful rebidding,
Meralco relaxed the rules. Among others, the utility firm now allows a 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.”
Previously, Meralco’s TOR allow
power plants utilizing high-efficiency, low-emission technology.
Mariveles Power Generation Corp.,
which is a joint venture between SMC Global Power Holding Corp. and Meralco
PowerGen Corp. (MGen), withdrew from the first CSP because the power plant that
would join the auction is a circulating fluidized bed (CFB) coal-fired power
plant.
“We did not join the greenfield
because CFB plants do not meet the requirements. If they will let us join, that
is a level playing field,” Ang had said.
Another power giant that is expected
to join the second round of CSP is AC Energy.
“We are reviewing it,” said AC
Energy President Eric Francia in a text message, while adding that the new set
of TOR has made it attractive to power firms. “There have been significant
improvements in the TOR. Other remaining concerns, hopefully, could be
addressed through the process. I hope this CSP succeeds as we need additional
capacity soon.”
AC Energy and SMC previously won in
two other competitive biddings for Meralco’s 1,200 MW brownfield and 500-MW
capacity requirement.
Based on the revised TOR, bidders
can offer Meralco to supply 600 MW blocks. If multiple power facilities would
be utilized to supply Meralco, bidders are allowed to place a minimum bid capacity
of 150 MW per unit of the same fuel type. Previously, the TOR stated that the
entire 1,200-MW capacity must come from one power plant.
The new bid invite was published
December 27.
A pre-bid conference is scheduled on
January 20, while the bid submission and opening is on February 17. The
power-supply contract is good for 20 years, commencing September 2024.
It can be recalled that the first
CSP for the 1,200-MW capacity was declared a failure after only Atimonan One
Energy Inc. of MGen submitted a bid. MGen is the power-generation arm of
Meralco.
Thereafter, the Department of Energy
(DOE) told Meralco to revise the TOR so more power firms can participate.
Energy Secretary Alfonso G. Cusi
declined to comment on the revised TOR, saying “I have yet to see it first.”
Clean energy advocates said they
would vigilantly watch over the upcoming CSP. They warned Meralco that
consumers would be on guard to uphold the goal of the CSP in securing
affordable electricity from the power firms that will sell their capacity to
the country’s largest power distribution firm.
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