By Danessa O. Rivera (The
Philippine Star) | Updated January 10, 2016 - 12:00am
MANILA, Philippines – Power
distributor Manila Electric Co. (Meralco) is taking control of a joint venture
with Repower Energy Development Corp. (REDC) in renewable energy (RE)
development.
In a disclosure to the Philippine
Stock Exchange, Meralco said the agreement with REDC would entail the
establishment of a joint venture company that would pursue and undertake the
development of various hydroelectric power projects.
Meralco will have an “equity stake
equivalent to 50 percent minus one share of the authorized capital stock of the
proposed JVC”.
The partnership marks Meralco’s
foray into mini-hydropower development.
The partners will hold a series of
ground breaking ceremonies for mini-hydropower plants in select regions
starting in the first half of the year.
REDC has over 100 megawatts (MW) of
mini-hydropower projects clustered in Quezon, Camarines Sur, Bukidnon, and
other provinces under development with investments worth $400 million.
The joint venture will have its
first set of hydropower plants operational by 2019. These facilities will avail
of the feed-in-
tariff (FIT) scheme mandated by the Renewable Energy Act of 2008.
tariff (FIT) scheme mandated by the Renewable Energy Act of 2008.
The FIT system entitles power
developers to receive a set of incentives for a period of time to build RE
projects.
Developers of run-of-river hydro
projects, on the other hand, are entitled to a FIT allowance rate of P5.90 per
kilowatt-hour.
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