Meralco eyes PSAs for 300MW capacity

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DISTRIBUTION utility Manila Electric Co. (Meralco) is looking for an estimated 300 megawatts (MW) of mid-merit capacity through power supply agreements (PSA) over the next six months, a top company official said.

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“For or our baseload we are sort of already contracted. We are in discussions for our mid-merit for gas,” Meralco president and CEO Oscar S. Reyes told reporters.

Mid-merit power plants fill the gap between the peak load and base load power plants. In other markets, the mid-merit plants are natural gas plants that are easier to cycle.

Given the tendency of the base-load plants to bid low to be able to operate full time and of peakers to bid high to recover the standby time, the mid-merit plants have the most flexible bidding strategies.

“We are trying to determine the capacity that will be required. That’s still in the process,” Reyes said.

“The total capacity for mid-merit, we are looking at [that]because part of the base load can swing as mid-merit also,” he said, “but with an estimated need for 300 MW plus or minus.”

Reyes said that PSAs may be needed probably within the next six months, “[We will] probably be finalizing the contract within the first half of next year,” he said.

Asked on the length of contracts, Reyes said that, “maybe with all the changes that are happening, I think it’s going to be a matter between us and whoever the supplier or provider of power” will be.

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