Meralco set to hold auction for additional power supply
THE Manila Electric Co. (Meralco) assured the Department of Energy (DOE) that it will start within the month the competitive selection process (CSP) for the auction of 1,800megawatts (MW) of power capacity requirement.
“We are preparing to commence the 1800MW CSP within the third quarter, as mentioned by the DOE in its letter,” Lawrence Fernandez, Meralco utility economics head, said in an interview.
Meralco earlier asked the DOE if it could delay the auction to October this year. However, the DOE told Meralco to proceed at the soonest time possible the competitive auction for the 1800MW. It advised Meralco to explore other ways by which it can conduct the CSP amid the quarantine imposed by the government.
Fernandez said the publication of bid invites is expected to happen mid-september. “There is no fixed date yet, but we are targeting second half of September to publish the invitation to bid. Before that, we need to publish Meralco’s updated Power Supply Procurement Plan (PSPP) on DOE'S portal, as soon as DOE approved the PSPP."
The 1,800MW greenfield baseload capacity will supply Meralco’s requirements in 2024-2025.
The 1,800MW consists of the 1,200MW capacity from the failed CSP in 2019 and an additional 600MW from the target 1500MW baseload capacity supposedly scheduled for bidding in 2020.
The company was supposed to conduct 3 CSPS this year. These are 1,000MW baseload for 2025, 500MW baseload for 2027 and 600MW mid-merit for 2023.
Last year, Meralco conducted three CSPS. These are the 1,200MW baseload capacity starting 2020, 500MW mid-merit starting 2020 and the 1,200-MW baseload starting 2024.
SMC Global Power Holdings Corp., the power unit of conglomerate San Miguel Corp. earlier said it may participate in the 1,800MW CSP, based on a report to the Philippine Dealing and Exchange Corp.
Fernandez said Meralco expects more power firms to participate in the auction. He said their interest will be known after the utility firm has published the bid invite.