The Department of Energy (DOE) has given Pangilinan-led Manila Electric Co. (Meralco) the green light to launch an auction for 200 megawatts (MW) of new power supply.
Energy Undersecretary Mario Marasigan said the DOE cleared Meralco’s planned competitive selection process (CSP) for renewable energy baseload supply, with procurement set to start on Jan. 26, 2026.
The supply is intended to replace the power giant’s terminated baseload supply contract with the Zobel family’s ACEN Corp.
Meralco, however, must first address the recommendations from the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC) before moving forward with the CSP, Marasigan noted.
‘If Meralco feels that they have already complied with the comments of the PCC and the ERC, then they can proceed,’ he said, while withholding details of the agencies’ suggestions.
As a competition safeguard, the PCC is reviewing Meralco’s CSPs following a big-ticket liquefied natural gas (LNG) venture sealed in January with Ang-led San Miguel Global Power (SMGP) and Aboitiz Power Corp.
Meralco, through Meralco PowerGen Corp., joined forces with AboitizPower to invest in SMGP’s gas-fired power plants. Together, they also acquired an LNG terminal in Batangas as part of the deal.
According to Marasigan, the DOE has also received feedback on Meralco’s two other proposed CSPs – a 600-MW baseload and a 450-MW mid-merit supply – which are currently undergoing careful review.
Based on the company’s power supply procurement plan, both CSPs are required to meet the forecasted increase in captive demand.
The contract term for the 600-MW CSP is scheduled from Feb. 26, 2028 to Feb. 25, 2043. The 450-MW CSP, meanwhile, involves two supply deals – 300 MW and 150 MW – with delivery dates starting in 2028 and 2029, respectively.
Apart from these applications, Meralco also plans to conduct a power procurement auction for a 900-MW baseload supply.
The CSP is a government-mandated bidding mechanism that requires distribution utilities and electric cooperatives to procure their power supply from generation companies offering the most cost-effective rates.