The ENERGY REGULATORY COMMISSION (ERC) has approved Manila Electric Co.’s power supply agreements. (Meralco) (PSAs), which allow electricity distributors to meet their renewable electricity (RE) supply needs starting February next year.
The regulator granted Meralco a temporary authority to implement its power supply deals with San Roque Hydropower, Inc. (SRHI) and Gigasol3, Inc., according to a document posted on its website.
SRHI and Gigasol3 emerged among the winning bidders during the competitive selection process (CSP) conducted in July for Meralco’s 500 megawatt (MW) renewable power supply requirement.
SRHI offered the lowest price of P7.10 per kilowatt-hour (kWh) for 340 MW of total demand.
Gigasol posted an average of P8.1819 per kWh of 139 MW, while Santa Cruz Solar Energy, Inc. (SCSEI) installed the remaining 21 MW at a cost of P8.1998 per kWh.
All offers were below the P8.2380 reserve price per kWh set by the CSP.
SRHI, formerly known as Strategic Power Development Corp., is a subsidiary of San Miguel Global Power Holdings Corp., the power arm of San Miguel Corp. (SMC).
The SMC unit is the operator of the 345-MW San Roque Hydroelectric Power Plant in Pangasinan.
Meanwhile, Gigasol3 owns, operates, manages, and maintains the Palauig Solar Power Plant in Zambales, and oversees the commissioning of the Alaminos Solar Power Plant in Laguna.
Gigasol 3 and SCSEI are subsidiaries of ACEN Corp. under Ayala Group.
The ERC, however, approved the fixed minimum rate for SRHI and Gigasol3 at P5.1908 per kWh “without increase or adjustment.”
“The prices provisionally approved by the Commission are based on Meralco’s estimated supply ratio,” ERC Chair and Chief Executive Officer Monalisa C. Dimalanta said in a Viber message.
“We need to re-examine the high prices of these PSAs (above P8/kWh), as well as the fixed price set by Meralco, and all these will be covered in the final mandate that will be issued after the review,” he added.
The ERC has yet to issue its decision on the electricity supply agreement between Meralco and SCSEI.
The 10-year PSA from CSP will cover Meralco’s Mid-merit requirement from February 2025 and will increase by 150 MW from February 2026.
Renewable energy is expected to reach 22% of Meralco’s supply portfolio by 2030.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partially owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund owned by MediaQuest Holdings, Inc., has an interest in it. BusinessWorld through the Philippine Star Group, which controls. – Sheldeen Joy Talavera
Source link
