MERALCO PowerGen Corp. (MGen) opted out of the bidding process for the 796.64-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power complex in Laguna, citing constraints within its portfolio as the primary reason.
“Today, there’s still the limited portfolio that we have in order to at least provide the value for CBK that would be competitive,” MGen President and Chief Executive Officer Emmanuel V. Rubio told reporters on July 29.
“We decided not to proceed with that. I think, let the others with the bigger portfolio participate. I think that’s how they’re going to justify the participation of ACEN, First Gen, and Aboitiz,” he said.
Mr. Rubio said that it would be difficult to provide the value for the CBK hydro complex with the upcoming round of the Green Energy Auction (GEA), which involves pumped storage hydro.
MGen, the power generation arm of Manila Electric Co. (Meralco), currently has a total power generation gross capacity of 2,425 MW, utilizing coal, liquefied natural gas, diesel, and solar technologies.
MGen was among the eight qualified bidders identified by the Power Sector Assets and Liabilities Management Corp. for the CBK hydro complex privatization.
Other bidders were Marubeni Corp., Semirara Mining and Power Corp., First Gen Prime Energy Corp., Giga Ace 11, Inc. under ACEN Corp., and Korea Water Resources Corp.
The Thunder Consortium, composed of Aboitiz Renewables, Inc., Electric Power Development Co., and Japanese firm Sumitomo Corp., and the consortium composed of China Huadian Hong Kong Company Ltd. and Citicore Renewable Energy Corp. were also qualified bidders.
The CBK hydro facilities are currently under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between independent power producer CBK Power Co. Ltd. and National Power Corp., which will expire in 2026.
These facilities include the 39.37-MW Caliraya HEPP in Lumban, the 22.91-MW Botocan HEPP in Majayjay, and the 366-MW Kalayaan I and 368.36-MW Kalayaan II pumped storage power plants in Laguna.
The bidding is set to commence this year, with awarding targeted for 2025.
Meanwhile, Mr. Rubio said that MGen’s participation in the third round of the GEA would depend on the prices that will be set.
“It depends on what the prices are, but we would have projects that can participate as long as the prices are acceptable,” he said.
The Department of Energy will offer an estimated 4,399 MW of capacity, covering geothermal, impounding hydro, pumped storage hydro, and run-of-river hydro.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
