The 10-year power supply agreement (PSA) will cover Meralco's 350-MW mid-merit requirement starting February 2025, which will increase by 150 MW beginning February 2026. Meralco, through its bids and awards committee for PSAs, set the bid submission deadline on July 17. The conduct of the CSP is in compliance with the Department of Energy's (DOE) policy on renewable portfolio standards (RPS) and forms part of the company's commitment to source an increasing portion of its supply requirements from RE sources. RPS is a policy mechanism that requires electric power industry participants such as generators, distribution utilities and suppliers to source or produce a specified fraction of their electricity from eligible RE resources. It is set at 2.5 percent of electricity sales allocation for distribution utilities connected to the grid.