Manuel V. Pangilinan-led Manila Electric Co. (Meralco) is set to tap Sual Power Inc. (SPI) for its baseload capacity after the San Miguel Corp. (SMC)-led firm submitted the most competitive offer during a recent competitive selection process (CSP).

In a statement on Tuesday, Feb. 17, Meralco said it secured the best offer from SPI at ₱4.2955 per kilowatt-hour (kWh) for its baseload requirement.

Once finalized, the power supply agreement (PSA) will cover Meralco’s 200-megawatt (MW) baseload requirement in compliance with renewable portfolio standards (RPS), pending approval from the Energy Regulatory Commission (ERC).

The next best bids came from Mariveles Power Generation Corp., which offered ₱4.3805/kWh for 200 MW; Bac-Man Geothermal Inc., which offered ₱4.5187/kWh for 35 MW; and San Manuel Solar Inc., which offered ₱4.5787/kWh for 46 MW.

This followed after six generation firms submitted bids last Monday, Feb. 16, totaling 531 MW.

Rounding out the submissions were ACEN Corp., which offered ₱5.2087/kWh for 25 MW, and First Gen Hydro Power Corp., which offered ₱5.4906/kWh for 25 MW.

“As in previous years, this CSP has successfully secured the required power supply for customers at the lowest possible cost, achieved through an open and transparent process," said Lawrence S. Fernandez, chairman of Meralco’s bids and awards committee (BAC) for PSAs.

The bidding process was monitored by CSP observers, including consumer groups, during the evaluation before issuing a notice of award and executing the PSA.

Earlier this month, Meralco was given the green light to extend its power supply deal with First Gas Power Corp. for the 1,000-MW Sta. Rita gas plant until June.

The company secured approval from the ERC to source additional baseload capacity in preparation for the summer season, when electricity demand typically surges across Meralco’s franchise area, which spans 39 cities and 72 municipalities. - Gabriell Christel Galang