Alliance Global taps Meralco’s MPower for RE
MANILA ELECTRIC Co. (Meralco) announced on Monday that its local retail electricity supplier MPower has signed a supply agreement with Tan-led Alliance Global Group, Inc. (AGI) for the provision of renewable energy (RE) to its businesses.
MPower will supply a total of 100 megawatts of renewable energy to AGI through Travellers International Hotel Group, Inc., the operator of Megaworld Corp. and Newport World Resorts, Meralco said in a statement on Monday.
“This partnership [with] MPower is a significant move towards AGI’s goal of achieving carbon neutrality as it signals our full transition to tapping renewable energy sources for our businesses,” AGI Chief Executive Officer Kevin Andrew L. Tan said.
“Power consumption accounts for about 95% of AGI’s carbon emissions from our day-to-day operations. Sourcing 95% of our energy requirement from renewable sources will significantly lessen our emissions from our operations,” he added.
The partnership brings AGI “closer to its target” to source 100% of its power requirements from renewable energy by 2025, Meralco said.
Meanwhile, the subsidiaries of Meralco and Aboitiz Power Corp. (AboitizPower) have formed a joint venture that will serve as a vehicle to invest in the gas-fired power plants of San Miguel Global Power Holdings Corp. (SMGP).
Meralco PowerGen Corp. (MGen) and Therma NatGas Power, Inc. (TNGP) have jointly entered into an investment agreement to form Chromite Gas Holdings (CGHI).
“MGen will acquire 60% interest in CGHI while TNGP will acquire the balance of 40%,” Meralco said in a stock exchange disclosure.
The company did not disclose the amount of the investment deal.
MGen is the power arm of Meralco while TNGP is a wholly owned subsidiary of AboitizPower through Therma Power, Inc.
SMGP announced over the weekend that it had signed a $3.3-billion landmark deal with MGen and AboitizPower to launch an integrated liquefied natural gas facility in Batangas.
CGHI plans to invest in two gas-fired power plants owned by SMGP: the 1,278 megawatts (MW) Ilijan power plant and a new 1,320 MW combined power facility.
Together with SMGP, the joint venture company will also invest in liquefied natural gas (LNG) import and re-gasification terminal owned by Linseed Field Corp., a unit of Atlantic Gulf & Pacific Co.
REVIEW
Meanwhile, the Energy Regulatory Commission (ERC) has directed Meralco and the subsidiaries of First Gen Corp. to submit their respective documents and information for evaluating the fuel costs that the power distributor paid and passed on to consumers in February.
In an order dated Feb. 29, the ERC ordered Meralco, First Gas Power Corp. (FGPC), and FGP Corp. to submit the requirements on or before March 6.
This is in response to the urgent omnibus motion filed by Meralco on Feb. 19, seeking confirmation and approval of the costs related to LNG and Malampaya natural gas supply procured from First Gas power plants.
The documents directed to be submitted include those that will show that the “alternative fuel used by facilities was procured under competitive price and supply terms.”
The ERC also requires them to submit copies of the fuel supply plan, old and new GSPA between First Gen subsidiaries and the Malampaya consortium, fuel procurement plan, and relevant invoices relative to the LNG cargoes purchased, among others.
“Meralco, FGPC and FGP are hereby directed to submit their respective compliance pursuant to the foregoing directives via the official electronic mail address… within the aforementioned period,” the commission said.
Meralco’s controlling stakeholder, 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. —