Meralco Secures 500-MW Renewable Energy Supply

The Manila Electric Company (Meralco) has recently made a significant stride in its sustainability efforts by securing 500 megawatts (MW) of renewable energy supply from three reputable generation companies.

Through strategic sourcing initiatives, Meralco aims for renewable energy to constitute 22% of its supply portfolio by 2030. | San Roque Hydropower, Inc. (SRHI)

This achievement marks a crucial milestone in Meralco's commitment to integrating renewable energy into its power supply portfolio.

During the government-mandated Competitive Selection Process (CSP), Meralco received and evaluated bids from San Roque Hydropower, Inc. (SRHI), Gigasol3, Inc., and Santa Cruz Solar Energy, Inc. (SCSEI).

The rigorous bidding process, which concluded on July 17, saw all three companies submitting their qualification documents, technical proposals, and bid prices. Among the submissions, SRHI emerged as the most competitive bidder, offering a total headline rate of Php 7.1000 per kilowatt-hour (kWh) for 340 MW of the requirement.

Gigasol3 followed with a bid of Php 8.1819 per kWh for 139 MW, and SCSEI completed the lineup with a rate of Php 8.1998 per kWh for the remaining 21 MW.

All bids were notably below the reserve price of Php 8.2380 per kWh set for this CSP, showcasing the efficiency and competitiveness of the process.

The Bids and Awards Committee for Power Supply Agreements (BAC-PSA) conducted a stringent Pass/Fail completeness assessment and pre-qualification evaluation on all submissions.

The committee is now set to carry out a post-qualification evaluation and submit its recommendations to Meralco’s Board of Directors for final approval before issuing Notices of Award.

This CSP aligns with the Department of Energy’s (DOE) Department Circular No. DC2023-06-0021 and Energy Regulatory Commission (ERC) Resolution No. 16, Series of 2023.

Meralco BAC-PSA Chairman Larry S. Fernandez emphasized the company’s adherence to regulatory guidelines, stating, “As a highly regulated entity, Meralco has conducted its business in full compliance with the rules and regulations issued by the ERC and DOE.”

Transparency was a key aspect of the CSP, with representatives from the DOE and consumer groups present as observers.

The proceedings were streamed live, ensuring public accountability. All resulting contracts will undergo further regulatory proceedings and evaluation by the ERC.

The 10-year Power Supply Agreement (PSA) resulting from this CSP will commence in February 2025, initially covering 350 MW of Meralco’s mid-merit requirement. This will increase by an additional 150 MW starting February 2026.

Meralco’s long-term sustainability strategy is clearly reflected in this recent achievement. The company has already contracted 1,880 MW of renewable energy capacity, surpassing its initial target of 1,500 MW.

Through strategic sourcing initiatives, Meralco aims for renewable energy to constitute 22% of its supply portfolio by 2030.

Meralco’s successful CSP for its renewable energy supply requirement is a testament to the company’s dedication to sustainability and regulatory compliance. By securing competitive and efficient renewable energy sources, Meralco is paving the way for a greener and more sustainable future for the Philippines.