Prime Infra unit gets OPS for Meralco power supply proposal
Prime Infrastructure Capital Inc. subsidiary Ahunan Power Inc. has secured the original proponent status for its offer to supply 500 megawatts (MW) of mid-merit power using pumped storage hydropower as an energy storage system to the Manila Electric Co.
With the OPS granted by Meralco last June 29, Ahunan’s offer will be subject to competitive challenge under the rules of the Department of Energy, with the company having the right to match any comparative proposals.
“We are pleased to continue putting forward innovative solutions to Meralco and consequently having been granted the original proponent status to Ahunan. We look forward to the opportunity of further providing renewable energy sources that are reliable and sustainable,” Prime Infra chairman Enrique Razon Jr. said.
Ahunan nominated two pumped storage hydropower plants, either of which can supply the needed 500-MW energy, under its offer to ensure the timely supply of power to Meralco.
The first pumped storage hydropower plant is located in Laguna and is already undergoing pre-development by Ahunan, while the second is a plant in Wawa, Rizal under pre-development by Olympia Violago Water & Power Inc. (OVWPI).
Ahunan has entered into an agreement to acquire a controlling interest in OVWPI.
Ahunan and OVWPI have a total hydro service contracts of 1,200 MW and 500 MW net dependable capacity, respectively, which represents an additional eight percent dependable installed capacity to the Philippine grid.
Prime Infra said pumped storage hydropower plants store and generate electricity by moving water between two reservoirs at different elevations.
Water is pumped from the lower reservoir to the upper reservoir during off-peak hours to store underutilized energy, then released from the upper reservoir to the lower reservoir to generate electricity in times of high demand.
Ahunan’s pumped storage hydropower plants have a capability of a minimum guaranteed output of 12 hours per day covering the peak hours of Meralco.
Prime Infra said the development of PSH plants also represents a move away from the traditional oil or gas-based power for mid-merit and peaking.
“This project is a testament to our goal of integrating ESG in the critical infrastructure assets that we deliver. Prime Infra will continue to pioneer energy and other infrastructure projects that are environmentally resilient and socially relevant,” Prime Infra president and CEO Guillaume Lucci said.