The Manila Electric Co. (Meralco) has started the competitive selection process (CSP) for 500-megawatts worth of renewable energy (RE) it requires in two years.
Meralco said the bidding is consistent with Department of Energy’ policy on renewable portfolio standards and forms part of its commitment to source an increasing portion of its supply requirements from RE sources.
The 10-year power supply agreement (PSA) resulting from the bidding will cover Meralco’s 350-MW mid-merit requirement starting February 2025 which will also require an additional 150 MW beginning February 2026.
Meralco calls on power generation companies to submit expressions of interest by 7 June as the pre-bid conference begins on 17 June. Submission of bids lapses on 17 July.
Meralco has already contracted 1,880 MW of RE capacity from various suppliers as part of its long-term sustainability strategy. This already exceeds its initial target of 1,500 MW.
RE is programmed to account for 22 percent of Meralco’s supply portfolio by 2030.
Prior to this development, Meralco also recently secured additional power supply via a series of CSPs, with the latest attracting an additional 400 MW.
Under this CSP exercise, Limay Power Inc. submitted the lowest offer of P6.2708 per kilowatt-hour for 400 MW worth of baseload power supply until February 2025.
Meralco said the winning bid represents the least cost for customers once approved by the ERC and reduces its exposure to the Wholesale Electricity Spot Market when prices are volatile due to high demand and thin supply.
