Solar Philippines offers rate to Meralco

Solar Philippines has toughened up competition in the solar technology space as it dangled a price match of R2.99 per kilowatt-hour (kwh) to solar capacity procurement auctioned by power utility giant Manila Electric Company.

According to Solar Philippines President Leandro Leviste, they are now complying with the documentary requirements as set forth by the offtaker (capacity-buyer) utility.

He indicated that based on information given to them, Citicore Power, Inc. which had tendered the initial bid price of R3.50 per kWh had no longer exercised its “right to match” – in a deadline that was set August 14.

Leviste said the solar capacity in their Meralco offer will be coming from their new project development in Batangas.

It will be of 150-megawatt capacity venture, “and half of that will go to Meralco,” he said, upon finally signing up for a contract based on their price offer.

More specifically, the capacity that shall be delivered to Meralco based on the specified auction would be 85 megawatts, part of the utility firm’s strategic move to build up its supply portfolio of renewable energy.

Leviste hinted that a supply contract signing is in the offing, with just some processes still being sorted out and set for completion by relevant parties.

Meralco Vice President Lawrence Fernandez, when separately interviewed by the media, has noted that he cannot divulge details yet on the “price match tender”; although he affirmed that they actually got an offer of less than R3.00 per kWh.

He said the ‘matching offer” is still under evaluation by the bids and awards committee of the company, but an announcement will be due soon.

Solar Philippines has been intensifying “cost competition” in the solar sector, even for supply contracts set to be underwritten by distribution utilities and electric cooperatives.