Manila Electric Co. (Meralco) has started the competitive selection process (CSP) to challenge the unsolicited proposal of ultra bilyonaryo Ricky Razon’s Ahunan Power Inc. (API) to supply 500 megawatts of mid-merit power starting in 2026.
Through its Third-Party Bids and Awards Committee (TBPAC), Meralco has invited interested parties to challenge API, which offered a P4.0511 per kilowatt-hour (kWh) headline rate and levelized cost of electricity (LCOE).
This is exclusive of pumping/charging energy costs for the 20-year contract starting on February 26, 2026.
API, a company majority owned by Prime Infrastructure Capital, engages in developing hydropower plant projects through direct investment and partnerships.
The company intends to source the supply from pumped storage hydroelectric power plant projects in Pakil, Laguna, and San Mateo and Antipolo, Rizal.
Under the CSP’s approved terms of reference, the supply can come from a single or portfolio of plants, provided that the minimum configuration is sufficient to meet the contract capacity.
The guaranteed output should also be solely contracted to Meralco.
It further provides that 100 percent of the contract capacity should be available for six to 12 hours daily, covering Meralco’s peak hours, for at least 84 hours a week.
Bidders have until August 10 to submit their expression of interest.
The pre-bid conference will be held on August 11.
Interested parties have until September 14 to submit bids.
This CSP round is in compliance with the Department of Energy’s Renewable Portfolio Standards policy. It forms part of Meralco’s efforts to source up to 1,500 MW of its power requirements from renewable energy sources.
Earlier this year, Meralco received an unsolicited proposal from Terra Solar, a joint venture between Razon and techpreneur Leandro Leviste’s Solar Philippines to supply 850 MW of mid-merit power.
After the two rounds of CSPs failed due to a lack of challengers, Meralco started direct negotiations with the original proponent, consistent with the revised CSP rules.
The resulting power supply agreement from these negotiations will be submitted to the Energy Regulatory Commission for review and approval.