Panay Energy Development Corp. (PEDC) submitted the lowest bid for the contract to supply the Manila Electric Co. (Meralco) 70 megawatts of capacity from January 2022 to January 2037.

The Third-Party Bids and Awards Committee (TPBAC), which was in charge of the competitive selection process held last Friday, said PEDC offered the lowest total headline rate of P2.9906 per kilowatt hour (kWh) and total levelized cost of electricity (LCOE) rate of P2.948 per kWh.

PEDC’s offer was below the reserve prices of P5.0268 per kWh for the headline rate and P3.7898 per kWh for the LCOE rate that were set for the bidding.

Other companies that submitted offers were SEM-Calaca Power Corp. (SCPC) with a P4.8737 per kWh headline rate and Therma Luzon Inc. with P4.7 per kWh. Quezon Power Philippines Ltd. withdrew from the bidding process.

SCPC and TLI submitted LCOE rates of PP5.2894 per kWh and P5.1650 per kWh, respectively, which were above the LCOE reserve price.

The TPBAC will now conduct a post-qualification evaluation to determine if it should issue a notice of award to PEDC.

“As a regulated entity, Meralco has conducted its business in full compliance with all rules and regulations issued by the ERC [Energy Regulatory Commission] and DOE [Department of Energy]. The TOR [terms of reference] were reviewed and approved by the DOE, and all contracts resulting from this bidding process shall be subjected to regulatory proceedings and evaluation by the ERC,” said TPBAC Secretariat and Meralco Vice President and Head of Utility Economics Department Lawrence Fernandez.

TPBAC Chairman Ferdinand Domingo said the committee complied with its mandate to conduct the bid in an open and transparent manner to achieve the least cost of electricity, in accordance with the DOE’s circular.

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