The offer to supply the 500 megawatts (MW) of renewable energy (RE) mid-merit power capacity requirement of the Manila Electric Co. (Meralco) will again be subjected to competitive challenge.
In a final bid invite released on Thursday, Meralco is soliciting bids for the 500MW RE contract capacity.
The Third-Party Bids and Awards Committee (TBPAC) did not receive any offers during the first round of the competitive selection process (CSP) that is why Meralco will conduct another round of competition auction, said Meralco utility economics head Lawrence Fernandez.
Interested parties will challenge the offer of Ahunan Power Inc. (API), which offered a P4.0511 per kilowatt-hour (kWh) headline rate and levelized cost of electricity (LCOE), exclusive of pumping/charging energy cost.
API, a subsidiary of Prime Infrastructure Capital Inc. of tycoon Enrique Razon, submitted an unsolicited proposal to supply Meralco for 20 years, starting February 26, 2026.
API is engaged in the development of hydro power plant projects through direct investment and partnerships. The company intends to source the supply from pumped storage hydroelectric power plant projects in Pakil, Laguna, and San Mateo and Antipolo, Rizal.
The one in Laguna is already undergoing pre-development while the second is a plant in Wawa, Rizal under pre-development by Olympia Violago Water & Power, Inc. (OVWPI), which agreed to sell its 67-percent stake to API.
API’s offer is still subject to competitive challenge under the rules of the Department of Energy (DOE). This means that Ahunan has the right to match any comparative proposals.
The TPBAC has set on October 5 the deadline for the submission of Expression of Interest. A pre-bid conference is set on October 6.
The deadline for the submission of bids is on November 8.
According to the CSP’s approved Terms of Reference, the supply can come from a single or portfolio of plants, provided that the minimum configuration is sufficient to meet the contract capacity. The guaranteed output should also be solely contracted to Meralco.
It further provides that 100 percent of the contract capacity should be available for 6 to 12 hours daily covering Meralco’s peak hours, for at least 84 hours a week.
This CSP round is in compliance with the DOE’s Renewable Portfolio Standards policy and forms part of Meralco’s efforts to source up to 1,500 MW of its power requirements from renewable energy sources.