Wednesday, January 10, 2018

Meralco unit plans to spend P40 billion in wind projects



By Lenie Lectura -

top official of the Manila Electric Co. (Meralco) said its wholly owned subsidiary plans to invest in two wind-power projects, each with a capacity of 150 megawatts (MW), with a combined project cost of about $800 million (around P40.225 billion at current exchange rates).
“Plus or minus, it’s $800 million for 300 [MW] wind-power projects,” Meralco President Oscar Reyes said during a briefing on Monday. Reyes added Meralco Powergen Corp. (MGen) may come in as an investor in the wind projects, though “the question of investment still has to be discussed.”
“The total cost of the project in 75-25 debt-to-equity is roughly $200 million in investment on a 100-percent basis,” he said. “We have gotten indications, coming from possible partners.”
MGen President Rogelio Singson said last month the company was looking at two wind projects: one in the north and the other close to the Meralco franchise area. MGen, however, is not the prime developer in these two projects.
For now, Reyes said, Meralco is being invited “for us to provide power supply agreement [PSA] of their output.”
“Now, we are focusing on PSA,” the Meralco official added.
Aside from wind, MGen is also looking at other cleaner technologies, such as pump storage and solar. Singson said these technologies are being considered, amid increases in coal tax and excise tax.
“When the coal tax kicks in, wind will be competitive,” Singson earlier said.
For solar, the group is studying possible investments, especially with battery storage. Singson said solar investments are confined to those with off-take agreements with Meralco.

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