By:
Ronnel W. Domingo 05:12 AM December 28, 2019
Manila Electric Co. has started the competitive bidding process for a contract
with a brand new power plant with a capacity of 1,200 megawatts (MW).
This followed a
successful competitive selection process held earlier this year for power
supply agreements covering a total 1,200 MW of baseload capacity as well as 500
MW of mid-merit capacity.
Baseload refers to
generators that will run around the clock to cover the minimum demand while
mid-merit refers to power plants that are dispatched to augment baseload
supply.
According to Meralco,
the latest contract—which is good for 20 years—requires that the new power
plant must start commercial operations in September 2024.
“Meralco continues to
work with the Department of Energy and the Energy Regulatory Commission to
ensure the completion of the succeeding biddings,” said Jose Ronald V. Valles,
first vice president and head of regulatory management at the company.
The power distribution
giant “is confident that the next round of bidding will be successful once
again as this will contribute to adding much-needed capacity to the Luzon grid
as well as bring power rates further down for the benefit of our consumers,”
Valles said in a statement.
The lawyer added that
the terms of reference for the latest bidding “are pro-consumer, transparent
and will result in least cost” as required by the the Electric Power Industry
Reform Act.
A third-party bids and
awards committee is scheduled to conduct a pre-bid conference on Jan. 20.
Submission and opening of bids are slated for Feb. 17.
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