Manila Electric Company (Meralco) has identified the three lowest bidders for its 600-megawatt (MW) supply requirement, with offers starting at P5.3573 per kilowatt-hour (kWh) under the utility’s government-mandated Competitive Selection Process (CSP).
Mariveles Power Gen Corp. (MPGC), Sual Power Inc. (SPI), and GNPower Mariveles Energy Center (GMEC) emerged with the lowest offers during the bid opening on September 1.
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.
GMEC offered P5.5789 per kWh for as much as 600 MW but later reduced its offered capacity to 200 MW, effectively completing Meralco’s entire 600-MW requirement alongside MPGC and SPI.
The other qualified offers came from Masinloc Power Co. Ltd., which bid P5.6290 per kWh for 200 MW, and Therma Luzon Inc., which offered P5.6988 per kWh for 194 MW. All quoted prices were inclusive of value-added tax and a capped line rental charge.
Six of the nine companies that had earlier expressed interest in the CSP submitted qualification documents, technical proposals and price offers by the September 1 deadline.
According to Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA), all offers except that of Energy Development Corp. came in below the reserve prices set for the bidding.
The submissions underwent a Pass/Fail completeness review and pre-qualification assessment as part of the utility’s procurement process.
“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,” BAC-PSA Chairman Lawrence S. Fernandez said.
Representatives of consumer groups and the Philippine Competition Commission observed the bidding, while the proceedings were also livestreamed through Meralco’s YouTube page.
The BAC-PSA will now conduct a post-qualification evaluation before submitting its recommendations to Meralco’s Board of Directors. Winning suppliers will receive Notices of Award following board approval.
The resulting 15-year power supply agreements will still require review and approval by the Energy Regulatory Commission before implementation.
Under the procurement schedule, the first 300 MW of baseload capacity is targeted for delivery by February 26, 2028, while the remaining 300 MW is scheduled to come online beginning February 26, 2029.
The competitive offers could become a key component of Meralco’s long-term supply portfolio as the country’s largest power distributor seeks to lock in dependable baseload capacity at the lowest possible cost for consumers.