Mariveles Power Gen Corp. (MPGC), Sual Power Inc. (SPI) and GNPower Mariveles Energy Center (GMEC) submitted the lowest bids during the Sept. 1 opening, potentially securing 200 MW each under 15-year power supply agreements (PSAs).
MPGC and SPI are subsidiaries of SMC Global Power Holdings Corp., while GMEC is controlled by AboitizPower through Therma Power Inc.
By the numbers
MPGC submitted the lowest total levelized cost of electricity (LCOE) at P5.3573 per kWh for 200 MW, followed by SPI at P5.4357 per kWh for another 200 MW. SPI offered P5.4357 per kWh also for a 200-MW supply.
GMEC initially offered 600 MW at P5.5789 per kWh but later reduced its offered capacity to 200 MW, completing Meralco’s 600-MW requirement.
Six of the nine companies that initially expressed interest in the contract submitted qualification documents, technical proposals and price bids. Meralco said all offers except that of Energy Development Corp. were below the reserve prices established for the CSP.
The other bidders were: Masinloc Power Co. Ltd, Therma Luzon Inc., and Energy Development Corp.
Meralco in a statement said all offers except that of EDC were below the reserve prices established for the CSP.
The offers include value-added tax and a capped line rental charge.
Why it matters
The procurement will provide Meralco with additional baseload capacity beginning in 2028 as the country's largest private electric distribution utility seeks to secure long-term supply at competitive rates.
The first 300 MW is targeted for delivery by Feb. 26, 2028, with the remaining 300 MW scheduled to come online on Feb. 26, 2029.
“The Meralco BAC-PSA has fully complied with its mandate to conduct the bid in an open and transparent manner to achieve the least cost of electricity in accordance with rules and regulations set by the Department of Energy and the Energy Regulatory Commission (ERC),” Meralco BAC-PSA chair Lawrence S. Fernandez said.
What’s next
Meralco's Bids and Awards Committee for Power Supply Agreements will conduct post-qualification evaluations before submitting its recommendations to the company's board for approval.
“The BAC-PSA will conduct a post-qualification evaluation and submit its recommendation and report to Meralco’s Board of Directors for approval of the best bids as the winning power suppliers prior to the issuance of Notices of Award,” Fernandez said.
The resulting 15-year PSAs will also require ERC approval before implementation. —Ed: Corrie S. Narisma
