The Manila Electric Company (Meralco) has secured the lowest offers for its 600-megawatt (MW) baseload supply requirement through a Competitive Selection Process (CSP).
Six of the eight bidders who expressed interest in participating in the CSP submitted their qualification documents, technical proposal, and bid price.
Masinloc Power Co. Ltd. was declared the best bidder after it offered a 500-MW capacity at a total levelized cost of electricity rate (LCOE) of P5.6015 per kilowatt-hour (kWh), inclusive of line rental cost and value-added tax.
GNPower Dinginin Ltd. Co., meanwhile, offered to supply the remaining 100-MW baseload requirement at an LCOE rate of P5.7392 per kWh.
Both offers are significantly lower than the P7.2609 per kWh reserve price set for the bidding.
Declared as the successive possible best bids are Mariveles Power Generation Corporation, which offered P6.4017 per kWh for 200 MW of supply, and Quezon Power Philippines Limited Co., which submitted a P6.5487 per kWh bid for 400 MW of the baseload requirement.
According to Meralco's Bids and Awards Committee for Power Supply Agreements (BAC-PSA), the submissions passed the criteria contained in the bidding documents and pre-qualification evaluation.
Meanwhile, two bidders were deemed non-compliant as their offers exceeded the reserve price. Southwest Luzon Power Generation Corporation offered a total LCOE rate of P7.7303 per kWh, and Therma Luzon Inc. bid P8.3388 per kWh.
"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 issuance of Notices of Award and execution of PSAs."
As a highly regulated entity, Meralco conducted the CSP in full compliance with the rules and regulations issued by the Energy Regulatory Commission (ERC)and the Department of Energy (DOE).
"The CSP ensures an open and transparent process that ensures fairness and integrity," Fernandez added.
CSP observers, including consumer groups, also witnessed the bid submission. The proceedings were also streamed live on Meralco's YouTube page.
The resulting 15-year PSAs will be subject to regulatory proceedings and approval of the ERC prior to planned effectivity on August 26, 2025.
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