1. Meralco bidding process
2. 400 MW power supply tender
3. Meralco procurement announcement
Meralco, the distribution giant, has opened bidding for 400 MW of supply to meet its long-term energy needs, with deliveries starting next year. This move is part of the competitive selection process to secure mid-merit supply, aimed at managing fluctuating demand throughout the day. The Department of Energy mandates distribution utilities and electric cooperatives to conduct auctions to secure electricity requirements at the least cost to consumers. Suppliers operating natural gas-fired power plants are encouraged to participate and prioritize indigenous natural gas use. The power supply agreement will be covered by a 15-year contract, subject to Energy Regulatory Commission approval.
You may also like to watch : Who Is Kamala Harris? Biography - Parents - Husband - Sister - Career - Indian - Jamaican Heritage
Related Story.
Meralco, the largest distribution utility in the Philippines, is currently seeking proposals for 400 megawatts (MW) of supply to address its long-term energy needs. This move comes as the company aims to secure mid-merit supply, which refers to the electricity injected into the grid to manage fluctuating demand throughout the day.
As mandated by the Department of Energy, distribution utilities and electric cooperatives are required to conduct auctions to secure their electricity requirements at the least-cost charge to consumers. In line with this, Meralco has initiated a competitive selection process to source the needed supply, with deliveries expected to commence next year.
You may also like to watch: Is US-NATO Prepared For A Potential Nuclear War With Russia - China And North Korea?
Suppliers with natural gas-fired power plants are being encouraged to participate in the bidding process and prioritize the use of indigenous natural gas. The power supply agreement will span 15 years, with operations set to begin on August 26, 2025, pending approval from the Energy Regulatory Commission.
For the bidding, power plants nominated should be technically capable of supplying the entire contract capacity, with a minimum offered capacity of 150 MW. The supply can originate from a single facility or a portfolio of power plants, providing flexibility in meeting Meralco’s energy requirements.
This strategic move by Meralco underscores the company’s commitment to ensuring a reliable and cost-effective power supply for its customers. By engaging in a competitive selection process, Meralco aims to secure the best possible terms for its electricity procurement, ultimately benefiting consumers through potentially lower electricity rates.
In a statement, Meralco emphasized the importance of sourcing power from suppliers that can offer competitive rates while also promoting the use of indigenous natural gas. This aligns with the company’s efforts to support sustainable energy practices and reduce reliance on imported fuels.
As the energy landscape continues to evolve, Meralco remains at the forefront of driving innovation and efficiency in the power sector. By actively engaging with suppliers and stakeholders through competitive bidding processes, Meralco seeks to enhance transparency and accountability in its energy procurement activities.
The solicitation of proposals for 400 MW of supply represents a significant milestone for Meralco as it looks to secure its future energy requirements. With a focus on sustainability, affordability, and reliability, Meralco is poised to navigate the challenges of the evolving energy market and deliver value to its customers.
In conclusion, Meralco’s decision to open bidding for 400 MW of supply underscores its proactive approach to meeting the energy needs of its customers. By prioritizing cost-effective and sustainable energy sources, Meralco is positioning itself for long-term success in a rapidly changing energy landscape.