Manila Electric Company (Meralco) has tapped three power suppliers tied to San Miguel Corporation and Aboitiz Power Corporation after they submitted the most competitive offers during a competitive selection process for the distribution utility’s 600-megawatt (MW) baseload capacity requirements.
Out of six participating firms, Meralco’s Bids and Awards Committee for Power Supply Agreements identified Mariveles Power Gen Corporation, Sual Power Inc., and GNPower Mariveles Energy Center as the top bidders. Nine generation companies originally expressed interest in the procurement program.
Mariveles Power Gen—a joint venture between San Miguel and Meralco PowerGen Corporation—yielded the lowest total levelized cost of electricity at ₱5.3573 per kilowatt-hour (kWh) for a 200-MW allotment.
Sual Power, managed by San Miguel’s power unit, submitted a bid of ₱5.4357 per kWh for a separate 200-MW portion.
AboitizPower’s GNPower Mariveles originally bid to cover the entire 600-MW capacity at ₱5.5789 per kWh, but subsequently adjusted its offered capacity down to 200 MW to allow an equal three-way split among the top candidates.
Meralco noted that all three winning bids came in beneath the reserve price threshold set for the tender.
Other participating bidders included Masinloc Power Company, which submitted a ₱5.6290 per kWh rate for 200 MW, and Therma Luzon Inc., which quoted ₱5.6988 per kWh for a 194-MW allocation.
Energy Development Corporation was the sole bidder that failed to meet the specified price cap.
The competitive bidding aims to secure Meralco’s long-term power supply while keeping consumer electricity rates as stable as possible. Delivery of the first 300-MW block is slated to begin on February 26, 2028, with the final 300-MW block scheduled to go online on February 26, 2029.
Lawrence Fernandez, chairman of Meralco’s power supply bidding committee, noted that every proposal was subjected to rigorous completeness checks and pre-qualification evaluations to ensure the process yields the lowest possible generation costs for end-users.
The procurement process was carried out in full compliance with guidelines established by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC).
The three successful bids will now undergo post-qualification verification. Following this stage, the bidding committee will submit its final recommendation to Meralco’s board of directors for endorsement.
Upon board approval and issuance of the notices of award, the resulting 15-year power supply contracts will be filed with energy regulators for final review and approval prior to implementation.