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Sual Power Inc. (SPI), a subsidiary of San Miguel Global Power Holdings Corp. (SMGP), has emerged as the lowest bidder in Manila Electric Co.’s (Meralco) competitive selection process (CSP) for a 200-megawatt (MW) baseload supply contract, offering P4.2955 per kilowatt-hour (kWh).
Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA) declared SPI’s offer as the best bid after six generation companies submitted compliant proposals totaling 531 MW—more than double the required capacity. The four-year power supply agreement remains subject to post-qualification review and approval by the Energy Regulatory Commission (ERC).
Strong Bidding Participation
The CSP drew interest from 15 companies, with six proceeding to submit offers. SPI offered to supply the full 200-MW requirement at P4.2955 per kWh, the lowest rate among the bidders.
Mariveles Power Generation Corp., another SMGP unit, submitted the next lowest bid at P4.3805 per kWh for 200 MW. Bac-Man Geothermal Inc., under the Lopez group, offered P4.5187 per kWh for 35 MW. San Manuel Solar Inc. proposed P4.5787 per kWh for 46 MW.
ACEN Corp., the listed energy platform of the Ayala group, bid P5.2087 per kWh for 25 MW, while First Gen Hydro Power Corp., also part of the Lopez group, offered P5.4906 per kWh for 25 MW.
Meralco said the strong response underscored ample supply interest in the tender.
Transparent Process
The BAC-PSA will conduct a post-qualification evaluation before issuing a notice of award and executing the supply agreement with SPI. The resulting contract will cover Meralco’s 200-MW baseload requirement for four years.
“As in previous years, this CSP has successfully secured the required power supply for customers at the lowest possible cost, achieved through an open and transparent process,” said Lawrence S. Fernandez, chairman of Meralco’s BAC-PSA.
Meralco said the bidding was conducted in full compliance with rules set by the ERC and the Department of Energy. The process was broadcast live on the utility’s YouTube page, with consumer groups participating as official observers.
Supporting Renewable Obligations
The supply deal is expected to help Meralco meet its obligations under the Renewable Portfolio Standards (RPS), which require distribution utilities to source a portion of their electricity from eligible renewable energy facilities.
For this CSP, even operators of conventional power plants were allowed to participate, provided they offer financial guarantees in the form of renewable energy certificates.
SPI operates the 1,200-MW coal-fired Sual power plant in Pangasinan, the largest coal-fired facility in the Philippines by installed capacity. The plant has been supplying power to the Luzon grid since 1999.
The finalization of the agreement will depend on the completion of the post-qualification process and regulatory approval from the ERC.
Source:
https://tribune.net.ph/2026/02/17/meralco-shores-up-supply-locks-200-mw-deal