Power utility giant Manila Electric Company (Meralco) has accepted the lowest bid from Aboitiz-led GNPower Dinginin Ltd. Co. (GNPD) for its 400-megawatt (MW) mid-merit supply requirement, ensuring stable electricity for consumers.
In a statement, Meralco said GNPD’s bid was at P7.6816 per kilowatt hour (kWh) for the total levelized cost of electricity (LCOE) required for this supply.
Meralco reported that during the bid opening for the competitive selection process (CSP) on Tuesday, Oct. 1, three other generation companies submitted their qualification documents, technical proposals, and bid prices.
“All the offers were below the P8.0585 per kWh reserve price for LCOE set for the bidding,” the electricity firm stated.
According to Meralco, the next most competitive bids came from Sual Power Inc., which offered P7.7416 per kWh for 300 MW of supply, and Masinloc Power Co. Ltd., with a bid of P7.8567 per kWh for 200 MW of the supply requirement.
All bids met Meralco’s requirements for its power supply agreements (PSA) and were ensured to be fair and transparent.
Lawrence Fernandez, Meralco chairman of the Bids and Awards Committee for PSA (BAC-PSA), stated, “As in the past, this CSP has achieved the objective of securing the necessary power supply for customers at the lowest cost possible through an open and transparent process.”
To further enhance transparency, consumer groups and other observers witnessed the bid submissions and proceedings on Meralco’s YouTube channel.
Additionally, the BAC-PSA will conduct a post-qualification evaluation before issuing a notice of award and the PSA to the winning bidder.
Meralco emphasized that this 15-year PSA for its 400 MW energy requirement will require approval from the Energy Regulatory Commission (ERC) before it can take effect on August 26 next year.
“As a highly regulated entity, Meralco conducted the CSP in full compliance with the rules and regulations issued by the ERC and the Department of Energy (DOE),” it added.