MANILA, Philippines — Manila Electric Co. (Meralco) is looking for challengers for the unsolicited proposal of Solar Philippines covering 200-megawatt (MW) of baseload supply starting 2024.
Meralco yesterday said it has commenced the competitive selection process (CSP) for the supply offer as part of its continuing efforts to secure competitively priced power for its customers.
The power utility giant, through its third-party bids and awards committee, is inviting interested parties to challenge Solar Philippines Batangas Baseload Corp. (SPBBC)’s proposal.
SPBBC offered a P4.65 per kilowatt-hour (kWh) headline rate at 100 plant capacity factor and a similar rate for the levelized cost of electricity for a period of 20 years.
SPBBC intends to source the 200-MW contract capacity and guaranteed output from its 1,800 MW solar project with 1,800 MWh of battery storage currently under development.
To ensure the availability of round the clock supply, SPBBC may also get back-up power from other plants in its renewable energy portfolio.
The company has proposed solar power plants with energy storage system in Batangas, Cavite and Laguna.
SPBBC earlier secured the original proponent status (OPS) for its proposal to supply Meralco with up to 200-MW of baseload capacity for 20 years.
With the OPS, SPBBC’s offer will be subject to competitive challenge, with the company having the right to match any comparative proposal.
Meralco said interested challengers have until Aug. 31 to submit their expressions of interest, while the bid submission deadline is set on Oct. 5.
The company said late submissions and requests for additional time would not be allowed in all stages of the bidding process.
The CSP terms of reference provides that offers, which should cover the full contract capacity, may be sourced from a single or portfolio of power plants with commercial operations not earlier than February 2019 but not later than March 2024.
Meralco said this CSP forms part of its sourcing activities that would ensure availability of reliable, sufficient, and cost-competitive power for its customers.
The company is also conducting a competitive challenge for Ahunan Power’s proposal to supply 500-MW mid-merit requirement from renewable energy starting 2026, and is negotiating for another mid-merit offer of Terra Solar covering 850 MW renewable energy supply.
“These CSPs are in compliance with the Department of Energy’s Renewable Portfolio Standards policy and part of Meralco’s efforts to source up to 1,500 MW of its power requirements from renewable energy sources,” the company said.
From the Philippine Star, August 18, 2022
