Solar Philippines set to seal Meralco power supply deal

SOLAR PHILIPPINES Power Project Holdings, Inc. is set to seal a new solar power supply contract with Manila Electric Co. ( Meralco) as its offer of P2.99 per kilowatt- hour (/ kWh) was not matched by Citicore Power, Inc. which first offered P3.50/ kWh to the country’s biggest power distribution utility.

“Our offer to Meralco is P2.99,” said Solar Philippines President Leandro L. Leviste told reporters on the sidelines of a renewable energy forum on Wednesday in Makati City.

“Citicore did not exercise its right to match last month,” he added, quoting an official from Meralco.

Mr. Leviste was referring to the P3.50/ kWh offered by Citicore Power for 85- megawatts ( MW) to Meralco, a price that was challenged by Solar Philippines as required by the Energy Regulatory Commission ( ERC) through a competitive selection process (CSP). “We should sign soon,” he said. In the same forum, Lawrence S. Fernandez, Meralco vice- president and head of utility economics, declined to give details of the CSP outcome because of a non- disclosure agreement.

But he said a contract with the chosen power supplier was being processed, including securing documentary requirements from the proponent.

Mr. Fernandez said the closing of the deal would be up to the developer’s compliance. “We will announce officially when the contract has been signed,” he said.

Solar Philippines would be supplying power to Meralco from a 150MW solar farm in Concepcion, Tarlac. The project was launched in July last year and was set for completion this year.

“The price that we had offered [is] to show in good faith that this can be the standard price for 5,000 megawatts of solar that can replace the current pipeline of new fossil fuel power plants,” he said.

“It might not be an attractive price for a single 85-MW plant but [it] will be viable for 5,000 MW to replace fossil fuel,” he added.

Aside from the power set aside for Meralco, Solar Philippines has also fully contracted the Tarlac project’s projected output with contestable customers, Mr. Leviste said, referring to those whose average monthly consumption for the past year reached the 1-MW threshold set by the ERC.

“We also have contracted the rest of our Tarlac plant already. So we have actually more than 150 MW in contract for Tarlac,” he said.

Asked whether Solar Philippines would enter the retail electricity supply market, Mr. Leviste said: “Our license is pending with ERC but there are other ways that we can supply them. Anyway, the contracts are not yet effective.” —