By BusinessMirror - February 23, 2017
THE Manila Electric Co. (Meralco) and PowerSource First Bulacan Solar Inc. (PFBS) are asking the Energy Regulatory Commission (ERC) to approve their power-supply agreement (PSA).
In a 15-page application, they asked the ERC to “render a decision approving the PSA”.
Meralco cited the need to source additional peaking capacity through bilateral power-supply contracts in order to ensure continuous and reliable electricity for its customers.
“Based on the power-situation outlook for 2017 and succeeding years, Meralco foresees a peaking capacity deficit in its portfolio, especially for the summer months, due to the expected high demand, as well as possible occurrences of scheduled maintenance shutdowns and forced outage of power plants,” Meralco said.
Based on the utility firm’s distribution development plan for 2015-2020, Meralco’s aggregate capacity requirement is forecasted to grow by a compounded average growth rate of 3.7 percent.
Under the PSA, Meralco will purchase up to 50 megawatts from the proposed solar power plant of PFBS in San Miguel, Bulacan, or an alternative site embedded within Meralco’s franchise area.
The cost of power that Meralco will purchase from PFBS is pegged at P4.69 per kilowatt-hour (kWh).
“This Honorable Commission’s approval of the PSA will send strong signals to renewable- or solar-energy generation projects in the Philippines, and thus, set the pace for infusion of similar investments by the private sector,” the companies said in their joint application.
Before Meralco awarded the PSA to PFBS’s proposal, another power firm, 7 Balboa Energy Holdings Inc., challenged the proposal.
PFBS, as the original power-supplier contract, exercised its right to match 7 Balboa’s proposal.
Thereafter, Meralco awarded the PSA to PFBS.