Meralco Ensures Transparency In 600-MW Deals

The Manila Electric Company (Meralco) has successfully secured the lowest offers for its 600-megawatt (MW) baseload supply requirement through a competitive selection process (CSP).

Meralco Secures Best Offer: The best bid came from Masinloc Power Partners Co. Ltd., a subsidiary of SMC Global Power Holdings Corp., offering a total levelized cost of electricity (LCOE) rate of P5.6015 per kilowatt-hour (kWh). | Photo: SMC Global Power

The CSP saw eight interested bidders, of which only six submitted their qualification documents, technical proposals, and bid prices.

The best bid came from Masinloc Power Partners Co. Ltd., a subsidiary of SMC Global Power Holdings Corp., offering a total levelized cost of electricity (LCOE) rate of P5.6015 per kilowatt-hour (kWh).

This rate includes line rental costs and value-added tax, covering 500 MW of the supply requirement.

Following closely, GNPower Dinginin Ltd. Co., a partnership between AboitizPower’s Therma Power, Inc. and AC Energy Holdings, Inc., bid to supply the remaining 100 MW at an LCOE rate of P5.7392 per kWh.

Both bids are significantly lower than the P7.2609 per kWh reserve price set for the bidding, ensuring substantial cost savings for Meralco's customers.

Other bids considered as next best were from Mariveles Power Generation Corporation, a venture jointly owned by Meralco PowerGen, SMC Global Power Holdings, and Zygnet Prime Holdings, which offered P6.4017 per kWh for 200 MW.

Additionally, Quezon Power Philippines Limited Co. (QPPL), owned by Thailand’s Electricity Generating Public Co., submitted a P6.5487 per kWh bid for 400 MW.

According to Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA), these submissions met the criteria outlined in the bidding documents and passed the pre-qualification evaluation.

“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,” said Lawrence S. Fernandez, Chairman of the BAC-PSA.

The committee will proceed with post-qualification evaluations before issuing Notices of Award and executing Power Supply Agreements (PSAs).

Meanwhile, two bidders were deemed non-compliant due to their offers exceeding the reserve price. Southwest Luzon Power Generation Corporation, a subsidiary of Semirara Mining and Power Corporation owned by David Consunji, proposed an LCOE rate of Php 7.7303 per kWh.

Therma Luzon Inc., managed by AboitizPower and operated by TeaM Energy Corporation, bid Php 8.3388 per kWh.

Meralco, as a highly regulated entity, ensured that the CSP adhered to the rules set by the Energy Regulatory Commission (ERC) and the Department of Energy (DOE).

The process was monitored by consumer groups and was streamed live on Meralco’s YouTube page, reflecting the company’s commitment to transparency and fairness. The resulting 15-year PSAs will be subject to ERC approval, with planned effectivity starting August 26, 2025.