By Jed Macapagal | Malaya
The Manila Electric Co. (Meralco) has assured the Department of Energy (DOE) preparations are set for the competitive selection process (CSP) of at least 2,000 megawatts (MW) capacity for two of its power plants, according DOE Secretary Alfonso Cusi.
Cusi said Meralco officials also gave the assurance the company will proceed with its projects despite the new requirement that compels distribution utilities to conduct CSP before signing a power supply agreement.
“There is an urgency to do a CSP on the two power plants, Atimonan and Redondo… That has to be subjected to CSP already because we need that for our capacity building,” Cusi said.
Meralco PowerGen, Meralco’s power generation subsidiary, is eyeing the development of the 1,200 MW Atimonan One Energy in Quezon Province and the 600 MW Redondo Peninsula Energy in Subic, both of which are coal-fired power plants.
“Their (Meralco) publication (of invitation to bid) will be within this week to call for challengers. After the publication, they will present to me the TOR (terms of reference) anytime now,” Cusi said.
Meralco spokesman Joe Zaldarriaga said the company is “closely following the DOE’s CSP guidelines and will publish very soon the invitation to bidders to supply power to Meralco.”
Under the CSP, a distribution utility may only sign a power supply agreement with a generation company only after calling for and receiving at least two qualified bids from generation companies and will only be allowed to have direct negotiations with other power suppliers only after at least two failed bidding procedures.