TWO power generation companies under San Miguel Corp. (SMC) and Aboitiz Power Corp. (AboitizPower) will undergo post-qualification evaluation for Manila Electric Co.’s (Meralco) 600-megawatt (MW) baseload supply requirement, the power distributor announced on Tuesday.
“Masinloc Power Co. Ltd. was declared the best bid after it offered P5.6015 per kilowatt-hour (kWh) total levelized cost of electricity rate (LCOE), inclusive of line rental cost and value-added tax, for 500-MW capacity,” Meralco said in a statement.
Masinloc Power is a subsidiary of San Miguel Global Power, the power arm of SMC.
“GNPower Dinginin Ltd. Co., meanwhile, offered to supply the remaining 100-MW baseload requirement at an LCOE rate of P5.7392 per kWh,” the company also said.
GNPD operates under the private limited partnership of AboitizPower’s Therma Power, Inc., AC Energy Infrastructure Corp., and Power Partners Ltd. Co.
Meralco said that both offers were “significantly lower than the P7.2609 per kWh price set for the bidding.”
A total of six companies submitted their qualification documents, technical proposals, and bid prices.
The next best bids came from Mariveles Power Generation Corp., which offered P6.4017 per kWh for 200 MW of supply, and Quezon Power (Philippines) Limited Co., which submitted a bid of P6.5487 per kWh for 400 MW of the requirement.
“The submissions passed the criteria contained in bidding documents and pre-qualification evaluation, according to Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA),” the company said.
Two bidders were deemed noncompliant as their offers were higher than the reserve price. Southwest Luzon Power Generation Corp. and Therma Luzon, Inc. offered rates of P7.7303 per kWh and P8.3388 per kWh, respectively.
The government requires distribution utilities to choose the cheapest electricity supply through a competitive selection process (CSP).
“The robust turnout of this CSP is a welcome development for Meralco’s continuing efforts to source sufficient power supply for its customers at the least cost possible,” Meralco BAC-PSA Chairman Lawrence S. Fernandez said.
“We will now proceed with the post-qualification evaluation prior to the issuance of notices of award and execution of PSAs,” he added.
The 15-year PSA resulting from the CSP will cover Meralco’s 600-MW baseload supply, effective on Aug. 26, 2025.
Meralco said that it conducted the CSP “in full compliance with the rules and regulations issued by the Energy Regulatory Commission and the Department of Energy.”
“The CSP ensures an open and transparent process that ensures fairness and integrity,” Mr. Fernandez said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
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