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Manila Bulletin devider Business devider Meralco sets 2nd RE baseload capacity bidding

Meralco sets 2nd RE baseload capacity bidding

Published Nov 15, 2022 08:57 am

Power utility giant Manila Electric Company (Meralco) is scheduling another round of bidding by January next year for a 200-megawatt baseload power capacity to be sourced from renewable energy (RE) generating facilities.

The auction date is scheduled on January 10, 2023, a follow-through to the October 25, 2022 competitive selection process (CSP), but was declared a "failure" due to lack of interested bidders.

The upcoming tendering process is expected to challenge the unsolicited proposal by Solar Philippines Batangas Baseload Corporation (SPBBC), a subsidiary of Solar Philippines of young businessman Leandro Leviste.

In addition, Meralco will need to decide on its next step for the 500-megawatt mid-merit capacity offer of Ahunan Power Inc. (API) of Razon-led Prime Infrastructure Capital Inc. after two failed bidding.

Both bidding processes for mid-merit and RE baseload capacity contracting, will be covered by 20-year power supply agreements (PSAs) and will form part of Meralco’s compliance to the Renewable Portfolio Standards (RPS) policy being enforced by the government.

The RE baseload capacity, in particular, is targeted for delivery into Meralco’s load network starting March 2024.

The Leviste-led company’s proposal is anchored on a solar farm development that will command the installation of 1,800 megawatts of solar plant with 1,800 megawatt-hours (MWh) of battery storage across project sites in Batangas, Cavite and Laguna.

The unsolicited bid of the Leviste firm offered a levelized cost of electricity (LCOE) and headline rate of P4.65 per kilowatt hour (kWh) for a capacity factor of 100-percent or round-the-clock provision of electricity supply to Meralco.

When the plant is unavailable, the supplier is mandated to procure back-up power from other plants to guarantee 24-hour electricity supply to Meralco.

The terms of reference (TOR) of Meralco’s CSP stipulated that “no capacity and electrical output of the plant’s greenfield component, within the contract capacity, shall be contracted under an agreement apart from the resulting power supply agreement.”

Separately, the API tender of the Razon group proposed that it will be generating the required capacity from two pumped storage hydro plants – one is its planned installation in Laguna which is currently under pre-development stage; and the other will be the integrated hydropower component of its Wawa hydro project in Rizal province, which is also under pre-development phase.

Mid-merit power supply refers to the generated electricity with a capacity factor that can meet system demand between baseload generation and the peaking facilities; while baseload capacity is the power supply that shall be available in the system all day and all night.

Related Tags

#MERALCO #RE #PSA #CSP #BASELOADPOWER #MIDMERITCAPACITY #SOLARPH #PRIMEINFRA
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