MGEN eyes Meralco baseload contract for Atimonan revival
MGEN plans to bid for Meralco's 900MW baseload contract, potentially reviving its long-delayed Atimonan coal plant.
MGEN is considering bidding for Meralco's 900MW baseload supply contract under a 15-year power supply agreement, a move that could potentially revive the company's long-delayed 1,200MW Atimonan coal-fired power plant in Quezon. The project has encountered regulatory challenges and shifts in fuel technology over the past decade. Securing a long-term PSA is crucial for making Atimonan viable by providing contracted demand to support project financing.
However, the 900MW contract only covers a portion of Atimonan's capacity. MGEN's involvement in Atimonan is currently not part of their projections, but a win in the bidding process would offer upside potential for the company. The deadline for expressions of interest is this week, followed by a pre-bid conference on November 6 and a bid submission deadline on December 9.
The success of MGEN in obtaining the contract on favorable terms would be a significant positive factor for Meralco, especially after the recent regulatory rate reset. Atimonan, if revived, would provide a long-term growth opportunity for MGEN, although its financial impact would not be realized until 2031. The information provided is based on sources AB Capital Securities deems reliable, but it is not guaranteed and should not be considered comprehensive.
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Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
