Meralco seeks API deal challenger
API, a company majority owned by Prime Infrastructure Capital Inc., develops hydropower plant projects through direct investment and partnerships
Dominant power distributor Manila Electric Company (Meralco) is looking for a supplier of electricity that would support its uninterrupted services to customers within its franchise area.
Meralco said Wednesday it has started the Competitive Selection Process (CSP) for an unsolicited proposal to supply 500 megawatts (MW) for its mid-merit power requirement starting in 2026.
Through its Third-Party Bids and Awards Committee (TBPAC), Meralco invites interested parties to challenge Ahunan Power Inc. (API), which offered a P4.0511 per kilowatthour (kWh) headline rate and levelized cost of electricity.
The cost is exclusive of pumping and charging energy cost, for the 20-year contract that will start on 26 February 2026.
API, a company majority owned by Prime Infrastructure
Capital Inc., develops hydropower plant projects through direct investment and partnerships. It intends to source the supply from pumped storage hydroelectric power plant projects in Pakil, Laguna, San Mateo and Antipolo, Rizal.
Dedicated output
Under the approved terms of reference of the CSP, the supply can come from a single or portfolio of plants, provided that the minimum configuration is sufficient to meet the contract capacity.
The guaranteed output should also be solely contracted to Meralco.
It further provides that 100 percent of the contract capacity should be available for 6 to 12 hours daily covering Meralco’s peak hours, for at least 84 hours a week.
Prospective challengers have until 10 August to submit their Expression of Interest,
and the Pre-Bid Conference will be held on 11 August.
The Bid Submission Deadline is scheduled on 14 September. After the Opening of Pre-Qualification Document Submissions on the same day, the TPBAC will declare the number of days needed for the Pre-Qualification Evaluation.
Opening of Bid Prices and Notification of Best Bid will take place no earlier than seven days after the TPBAC’s issuance of the Bid Bulletin announcing the results of the Pre-Qualification Evaluation.
The CSP round complies with the Department of Energy’s Renewable Portfolio Standards policy and forms part of Meralco’s efforts to source up to 1,500 MW of its power requirements from renewable energy sources.
Earlier this year, Meralco received an unsolicited proposal from Terra Solar to supply 850 MW of mid-merit power.
After the two rounds of CSP failed due to a lack of challengers, Meralco started direct negotiations with the original proponent, consistent with the Revised CSP Rules.