Meralco receives bids for clean energy CSP

Manila Electric Co. (Meralco) received bids to supply the required capacity of 500 megawatts (MW).

“The BAC (Bids and Awards Commission) has received three expressions of interest to participate in the 500 MW renewable energy (renewable energy) CSP (competitive selection process),” Meralco Utility Economics CEO Lawrence Fernandez said in a Viber message.

He did not disclose the identities of the energy companies involved.

The 10-year Power Supply Agreement (PSA) resulting from this CSP will cover Meralco’s average power demand of 350 MW from February 2025, which will increase by 150 MW from February 2026.

This CSP’s conduct is consistent with the Department of Energy’s (DOE) Policy on Renewable Portfolio Standards and is part of Meralco’s commitment to obtain an increasing share of its supply needs from renewable sources.

As part of its long-term sustainability strategy, Meralco has already contracted 1,880 MW of renewable capacity from various suppliers, exceeding the initial target of 1,500 MW. Through its strategic sourcing initiatives, RE is expected to account for 22 percent of Meralco’s supply portfolio by 2030.

Last week, Meralco announced that it has launched a CSP for a baseload demand of 600 MW for 2025. The 15-year PSA resulting from this CSP is scheduled to begin on August 26, 2025. Meralco prefers bidders that can offer natural gas.

In line with the Department of Energy’s October 11, 2023 advisory, Meralco said the terms of reference indicate that energy providers with natural gas-fired power plants are strongly encouraged to participate in tenders and prioritize the use of domestic natural gas.

Meralco’s PSA Bids and Awards Committee has set a June 25 deadline for submission of bids. The pre-tender conference is scheduled for July 4, and the deadline for submitting offers is August 2.