By Sheldeen Joy Talavera, Reporter
THE DEPARTMENT OF ENERGY (DoE) has cleared Manila Electric Co. (Meralco) to proceed with the bidding for 200 megawatts (MW) of renewable baseload power.
Speaking to reporters last week, Energy Undersecretary Mario C. Marasigan said the department had issued a certificate of conformity (CoC) for Meralco’s proposed competitive selection process (CSP).
“We cleared the first 200 [MW], but we deemed that the compliance of Meralco should be based on the observation of the PCC (Philippine Competition Commission) and ERC (Energy Regulatory Commission),” he said.
“So, in that sense, we deemed it okay to release the certificate of conformity,” he added.
Distribution utilities like Meralco conduct CSPs to procure power supply through a transparent and competitive bidding process aimed at securing the least-cost electricity.
Meralco submitted its terms of reference to the PCC and ERC for review. The issuance of a CoC by the DoE is a regulatory requirement before a CSP can begin.
The proposed 200-MW CSP will enable Meralco to comply with its obligations under the Renewable Portfolio Standards, which require distribution utilities to source a portion of their energy supply from eligible renewable energy sources.
The bidding forms part of Meralco’s plan to secure over 2,100 MW of capacity under its long-term supply procurement plan covering 2026 to 2046.
Mr. Marasigan said the decision now lies with Meralco on whether to proceed with the CSP if the company believes it has already addressed the regulators’ feedback.
“It’s up to them. If they feel that they have already complied with the comments of the PCC and ERC, then they can proceed,” he said.
Meanwhile, he said the DoE has yet to receive comments from the PCC and ERC on other proposed CSPs, such as the 600 MW of baseload and 450 MW of mid-merit power.
Lawrence S. Fernandez, vice-president and head of utility economics, said the company has yet to receive any CoC.
At present, Meralco is seeking ERC approval for its 20-year power supply agreement with First Quezon Biogas Corp. to source 1.25 MW of baseload supply from the latter’s biogas plant.
As the country’s largest private distribution utility, Meralco serves over eight million customers across Metro Manila and nearby areas.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
