Tuesday, September 10, 2019

Meralco to bid out 2,900MW power supply this week


Updated By Myrna M. Velasco

Power utility giant Manila Electric Company (Meralco) is scheduled to auction this week 2,900 megawatts (MW) of capacity for power supply agreements (PSAs) that will satiate its immediate and long-term power supply requirements.
The bidding for its baseload capacity of 1,200MW is today and it will be offered to pre-qualified generation company-bidders at a chunk of 200MW capacity each.
On Tuesday, September 10, the utility firm will also accept and open tenders for its sourcing of 500MW mid-merit and peaking capacity – offered at 100MW capacity each to the bidders.
The last round of auction will be on September 11 for its supply procurement from a greenfield power capacity of 1,200MW that will meet its future electricity requirements.
Meralco will be sourcing the targeted power supply within the ambit of the competitive selection process (CSP), which is the judicially upheld policy on procurements that will underpin the PSAs to be underwritten by distribution utilities.
That had been based on a recent Supreme Court ruling mandating all PSAs to go through CSP process – and the guiding policy to that is the circular previously issued by the Department of Energy.
For Meralco’s power supply bidding, it will be administered by a five-man third party bids and awards committee (TPBAC) to be chaired by lawyer Ferdinand A. Domingo, who is touted to have vast expertise and experience on local and international procurements, while the DOE will sit as “observer” in the bidding exercise.
For the brownfield baseload capacity tendering, Meralco previously indicated that there are 11 parties intending to submit offers while there are seven bidders for the mid-range/peaking capacity.
The PSAs for the brownfield or capacity from existing plants will be for 10 years and delivery will start December 26, 2019 while the mid-range/peaking capacity is for five years and must also start delivery on December 26 this year.
On the 1,200MW greenfield or “new power plant capacity” it will be a 20-year contract with firm commitment from the generation company-bidders to start delivering power supply by year 2024.
For that bid process, it has been tipped off that three companies are aggressively targeting to submit a bid including the energy investment arm of San Miguel Corporation, First Gen Corporation and Meralco’s subsidiary Meralco PowerGen.
The technical parameters set out for the greenfield capacity PSA will be anchored on the deployment of “high efficiency, low emissions” technology in the power plant to be built.

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