Meralco considers new offer from Solar Philippines

February 5, 2018  By Victor V. Saulon, Sub-Editor

http://bworldonline.com/meralco-considers-new-offer-solar-philippines/

DISTRIBUTION UTILITY Manila Electric Co. (Meralco) expects its required solar power capacity to grow, as it considers the new offer from Solar Philippines Power Project Holdings, Inc. on top of a separate offer from Lopez-led First NatGas Power Corp., its chairman said.

“We’re trying also to diversify our fuel sources, just in case, because for example if a typhoon hits a particular area wala ka nang (you won’t have) solar power so kailangan you (need to) have other sources. So it’s good for Meralco to diversify,” Meralco Chairman Manuel V. Pangilinan said. 

He confirmed receiving an offer from Solar Philippines President Leandro L. Leviste for solar power at P2.99 per kilowatt-hour (kWh), a price that is lower than electricity sourced from gas-fired power plants.

Last month, Mr. Leviste disclosed an offer for 24/7 power after Meralco invited price challengers to an unsolicited proposal from First NatGas for the supply of 414 megawatts (MW).

Solar Philippines said it made an the offer after Meralco declared a failure of bidding in a competitive selection process (CSP), in which no company qualified to challenge the proposal of First NatGas.

However, the CSP requirement was for the fuel for the power generation of the price challenger to be the same as the original power supplier, which is natural gas.

“Meralco may now choose whether to re-bid this under the same terms, or amend the terms to allow other technologies to compete on the basis of cost,” Solar Philippines had said.

Mr. Pangilinan described First NatGas’ offer as a “high price,” without disclosing a figure.

“In a way it’s different because natgas is gas, and solar is solar. It can’t be all solar. It can’t be all coal. It can’t be all gas,” he said.

“Part of our mandate is to source the least cost and we take that very seriously. On the other hand, we should also diversify the sources because if we are dependent on just a single source then that’s not good,” he said.

Asked whether Meralco would consider both offer, Mr. Pangilinan said: “Yes, of course.”

He said at present, Meralco sources 35% of the power it distributes to consumers from natural gas-fired plants. Solar power accounts for a small portion, he added.

“It’s (solar) not big but it will be growing. We could see that it will be,” he said.