Meralco: SMC and Aboitiz units offer the lowest tariffs for supply of 600 MW

TWO power generation companies under San Miguel Corp. (SMC) and Aboitiz Power Corp. (AboitizPower) will undergo post-qualification evaluation for Manila Electric Co.’s baseload needs. (Meralco) of 600 megawatts (MW), the power distributor announced on Tuesday.

“Masinloc Power Co. Ltd. was declared the best bid after it offered P5.6015 per kilowatt hour (kWh), the total levelized cost of electricity (LCOE), including line rental charges and value-added tax, for 500 MW of capacity,” Meralco said in a statement.

Masinloc Power is a subsidiary of San Miguel Global Power, the energy arm of SMC.

“GNPower Dinginin Ltd. Co. meanwhile, offered to meet the remaining baseload needs of 100 MW at an LCOE rate of P5.7392 per kWh,” the company also said.

GNPD operates under the limited liability company of AboitizPower’s Therma Power, Inc., AC Energy Infrastructure Corp. and Power Partners Ltd. Co.

Meralco said both bids were “significantly lower than the price of P7.2609 per kWh set for the bid.”

A total of six companies submitted their qualification documents, technical proposals and bid prices.

The next best bids came from Mariveles Power Generation Corp., which bid P6.4017 per kWh for 200 MW of supply, and Quezon Power (Philippines) Limited Co., which bid P6.5487 per kWh for 400 MW of the delivery. requirement.

“According to Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA), the entries met the criteria of the tender documents and pre-qualification evaluation,” the company said.

Two bidders were considered non-compliant because their bid was higher than the reserve price. Southwest Luzon Power Generation Corp. and Therma Luzon, Inc. offered rates of P7.7303 per kWh and P8.3388 per kWh, respectively.

The government requires distribution companies to choose the cheapest electricity supply through a competitive selection process (CSP).

“The robust emergence of this CSP is a welcome development for Meralco’s ongoing efforts to achieve adequate power supply for its customers at the lowest possible cost,” said Lawrence S. Fernandez, chairman of Meralco BAC-PSA.

“We will now proceed with the post-qualification evaluation prior to the issuance of announcements of award and execution of PSAs,” he added.

The 15-year PSA resulting from the CSP will cover Meralco’s 600 MW baseload offering, effective August 26, 2025.

Meralco said it conducted the CSP “in full compliance with the rules and regulations of the Energy Regulatory Commission and the Department of Energy.”

“The CSP ensures an open and transparent process that ensures fairness and integrity,” Mr. Fernandez said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partially owned by PLDT, Inc.

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