By Lenie Lectura - August 19, 2019
THE Manila Electric Co. (Meralco)
has received a total of 23 offers from power generation companies that are
interested to supply the utility firm’s power requirements via competitive
selection process (CSP).
The utility firm is bidding out
three power supply contracts with a total capacity of 2,900
megawatts. These are a five-year contract for a 500 MW mid-merit
capacity, a 20-year contract for 1,200 MW greenfield and a 10-year contract for
1,200 MW brownfield capacity.
“Eleven submitted expressions of
interest [EOI] for the CSP for the 1,200 MW baseload requirement, effective
December 26, 2019, with an aggregated offered capacity of 2,830 MW,” said
Meralco Utility Economics Head Lawrence Fernandez in an interview.
The 11 firms interested to
participate in the CSP of 1,200 MW brownfield capacity 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 December 26, 2019,
with an aggregate offered capacity of 1,200 MW,” added Fernandez.
These are Team Energy, First Gen
Hydro Power, Phinma Energy, Solar Philippines, Therma Luzon, AP Renewables,
South Premiere Power and SMC Consolidated. For the 1,200 MW greenfield
capacity, Fernandez identified four interested bidders. These are
First Gen, Atimonan One, Panasia Enegy and Mariveles Power.
“Finally, four submitted EOIs for
the CSP for 1,200 MW baseload, with commercial operations date of 2034,”said
Fernandez.
Mid-merit power plants are those
that can adjust the power output as demand for electricity fluctuates
throughout the day. Greenfield power plants are those that are built from
scratch while brownfield plants are those that are already existing.
The CSP requires distribution
utilities to hold competitive bidding for their supply requirements as against
securing power deals via bilateral contracts. This is meant to ensure
transparency and fair competition.
Meralco earlier inked seven PSAs
with several power generation companies, including two from its power
generation arm Meralco PowerGen, which is building power plants under Redondo
Peninsula Energy Inc. and Atimonan One Energy Inc.
The remaining five are with St.
Raphael Power Generation Corp., Meralco’s joint venture with Consunji-led
Semirara Mining and Power Corp.; Central Luzon Premiere Power Corp. (CLPPC);
Mariveles Power Generation Corp. (MPGC); Panay Energy Development Corp.; and
Global Luzon Energy Development Corp.
CLPPC and MPGC are under SMC Global
Power Holdings, the power arm of SMC.
However, these PSAs, with a total
capacity of over 3,500 MW, were not implemented following the Supreme Court
order that all power supply agreements filed on or before June 30, 2015, shall
undergo CSP.
The SC decision stemmed from
allegations that the Energy Regulatory Commission (ERC) gave due preference to
Meralco by extending the deadline for compliance of CSP.
The ERC appealed the SC ruling.
However, this was denied recently.
The ERC said it would file a Motion
for Clarification on how to implement the SC decision.
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