The Manila Electric Company (Meralco) has started the Competitive Selection Process (CSP) for an unsolicited proposal to supply 500 megawatts (MW) of the company’s mid-merit power requirement starting 2026.

Through its Third-Party Bids and Awards Committee (TBPAC), Meralco invites interested parties to challenge Ahunan Power, Inc. (API) which offered a P4.0511 per kilowatt-hour (kWh) headline rate and levelized cost of electricity (LCOE), exclusive of pumping/charging energy cost, for the 20-year contract that will start on February 26, 2026.

API, a company majority owned by Prime Infrastructure Capital, Inc., engages in the development of hydro power 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.

According to 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% of the contract capacity should be available for 6 to 12 hours daily covering Meralco’s peak hours, for at least 84 hours a week.

Interested challengers have until August 10 to submit their Expression of Interest, and the Pre-Bid Conference will be held on August 11.

The Bid Submission Deadline is scheduled on September 14. After the Opening of Pre-Qualification Document Submissions on the same day, the TPBAC will declare the number of days needed for the Pre-Qualification Evaluation.

Opening of Bid Prices and Notification of Best Bid will take place not earlier than seven (7) days after the TPBAC’s issuance of Bid Bulletin announcing the results of the Pre-Qualification Evaluation.

This CSP round is in compliance with the Department of Energy’s Renewable Portfolio Standards (RPS) policy and 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 to supply 850 MW of mid-merit power.

After the two rounds of CSPs failed due to 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.