Competition Heats Up For Meralco’s 600-MW Supply Contract
- July 31, 2026
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Manila Electric Co. (Meralco) has drawn interest from nine of the country’s major power generation companies for its planned procurement of 600 megawatts (MW) of baseload capacity, setting the stage for a competitive auction aimed at securing reliable electricity supply at lower costs for consumers.
The bidding process, conducted through a technology-neutral competitive selection process (CSP), seeks long-term power supply agreements totaling 600 MW, with an initial 300 MW scheduled for delivery beginning Feb. 26, 2028, and another 300 MW starting Feb. 26, 2029. The contracts will run for 15 years and remain subject to approval by the Energy Regulatory Commission (ERC).
Power Producers Line Up
The nine prospective bidders that attended the pre-bid conference on Tuesday are Energy Development Corp. (EDC), GNPower Mariveles Energy Center Ltd. Co., Therma Luzon Inc., Limay Power Inc., Mariveles Power Generation Corp., Masinloc Power Co. Ltd., Sual Power Inc., Southwest Luzon Power Generation Corp., and Panay Energy Development Corp.
Four of the interested firms—Limay Power, Mariveles Power Generation, Masinloc Power and Sual Power—are subsidiaries of San Miguel Global Power Holdings Corp., the power arm of San Miguel Corp.
EDC is the geothermal generation unit of First Gen Corp., while Therma Luzon is under Aboitiz Power Corp. Southwest Luzon Power Generation Corp. is owned by Semirara Mining and Power Corp., while GNPower Mariveles Energy Center is a partnership involving Aboitiz Power and other investors. Panay Energy Development Corp. is part of Global Business Power Corp., a subsidiary of Meralco PowerGen Corp. (MGen).
Under the terms of reference, bidders must offer a minimum contract capacity of 100 MW, although the companies have yet to disclose the capacities they intend to bid.
Competitive Procurement
Meralco said the CSP is open to all generation technologies that meet the technical and commercial requirements, in line with the Department of Energy’s (DOE) policy of maintaining a balanced energy mix.
The utility said procuring supply through a transparent, open, and competitive bidding process based on least-cost parameters is intended to secure reliable electricity at competitive rates for customers.
The procurement plan received DOE approval after undergoing a review that lasted more than a year, allowing Meralco to proceed with the bidding for the long-term baseload requirement.
Bids must be submitted by Sept. 1.
Commitment To Reliable Supply
“This CSP forms part of Meralco’s continuing commitment to securing reliable, adequate, and competitively priced power supply for customers through a transparent and competitive procurement process,” Meralco Bids and Awards Committee for Power Supply Agreements (BAC-PSA) chairman Lawrence Fernandez said.
Baseload capacity refers to power plants capable of operating continuously to meet the minimum level of electricity demand. These facilities typically include coal- and geothermal-fired plants, among other technologies that can generate power around the clock.
Current regulations require distribution utilities such as Meralco to procure electricity through a competitive selection process that attracts at least two qualified bidders before entering into power supply agreements. Direct negotiations with suppliers are allowed only after at least two unsuccessful bidding rounds.
The participation of nine power producers is expected to foster stronger competition for the contract, potentially helping Meralco secure more cost-competitive supply as electricity consumers continue to seek lower power rates.
Source:
https://businessmirror.com.ph/2026/07/28/smc-semirara-keen-on-15-year-power-supply-deal-meralco
https://tribune.net.ph/2026/07/28/power-giants-line-up-for-meralcos-600-mw-contract-2
