Power distributor giant Manila Electric Co. (Meralco) is seeking bidders for 400 megawatts (MW) of mid-merit power supply agreement (PSA) to ensure uninterruptible services to customers.

'We will bid out 400 MW of mid-merit, 'Meralco SVP and regulatory management head Jose Ronald Valles told reporters yesterday on the sidelines of an event in Makati City.

'This will not be renewable. This is open to both greenfield and brownfield (power plant operators),' Valles said, adding that this will be Meralco's last PSA for 2024.

The energy utility provider of tycoon Manuel V. Pangilinan has opened the competitive selection process (CSP), which covers a 15-year PSA that is targeted to start on August 26, 2025.

Based on the terms of reference of the CSP, the minimum offered contract capacity per bidder should be at least 150 MW.

To obtain a copy of bidding documents, interested power suppliers must pay a non-refundable fee of between P2.5 million and P12,000 multiplied by the MW of offered contract capacity.

The deadline for submission of an expression of interest is set for July 1, while the pre-bid conference and the bid submission deadline are scheduled for July 11 and August 9, respectively.

Pursuant to a Department of Energy advisory dated October 11, 2023, power suppliers with natural gas-fired power plants are strongly encouraged to join the bidding and prioritize the use of indigenous natural gas.

Last week, Meralco launched the bidding for 600 MW of baseload supply for 15 years, starting August 26 next year.

Prior to this, the company started the CSP for 500 MW of mid-merit renewable energy capacity to boost the share of clean energy in its power supply portfolio.

Meralco earlier said the conduct of the CSPs is aligned with its continuing efforts to ensure the availability of reliable, sufficient and cost-competitive power for customers.

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