Meralco taps add’l 50-MW supply deals, eyes up to 500-MW on ILP
The search of the power distribution giant Manila Electric Co. (Meralco) for additional power supply continues as it gets just a few months near to the March 2015 crucial period where shortage is likely to happen in Luzon.
Recently, Meralco was able to tap additional 50 megawatts to add to its interim power supply agreements (IPSAs) and is now eyeing more than 500-megawatts of power capacity from the interruptible load program (ILP).
Meralco president Oscar Reyes said the latest IPSA deal the company had secured was with Aboitiz Power Corp., the power arm of one of the country’s largest conglomerate Aboitiz Equity Ventures.
Through Aboitiz Power’s subsidiary AP Renewables Inc., which owns and operates the 400megawatt Tiwi-Makban plants, Meralco has tapped 50 megawatts of additional power capacity under IPSA.
Reyes likewise said Meralco is extending its IPSA contract with Global Business Power Corporation (GBPC), 1590 Energy Corporation, and PanAsia Energy Inc.
Including additional capacity from Makban plant, the total capacity of Meralco’s IPSAs with different companies already stood at 529 megawatts.
These deals, according to Reyes, will last until July next year and will be utilized starting summer next year.
Meanwhile, the Meralco’s chief said the company is also planning to secure more than 500 megawatts of power capacity under ILPs.
ILPs are generating units that serve as back-up capacity of industries such as malls and other commercial developments.
Under the ILP, customers with large loads, like commercial establishments, will be asked to operate their own generator sets if the grid operator projects a need to augment generation capacity in the Luzon Grid.
If they do, they will get paid and will be even allowed to sell their excess power to the grid.
“We are continuing to work and get the ILP to 400 megawatts. We’ve signed up over 300 megawatts and we’re working to bump it up to 400 to 500 megawatts and hopefully more because there’s still a lot [of establishments] even outside the franchise areas [of Meralco],” Reyes told reporters on the sidelines Asia’s CEO Awards held in Pasay on Wednesday evening.
Asked if the company could tap more than a thousand megawatts of capacity through ILP, Reyes said Meralco is doing its best to coordinate both the private sector and with the government.
“There’s actually around 2,500 to 2,600 megawatts [generator set capacity from the private companies], if we are able to encourage all the companies with generator sets… but we are also doing our best to work with everybody. The whole private sector is working with the government,” he added.