Meralco to develop 600MW of solar power in 3-4 years

By Lenie Lectura- May 29, 2018

https://businessmirror.com.ph/meralco-to-develop-600mw-of-solar-power-in-3-4-years/

THE power-generating arm of the Manila Electric Co. (Meralco) wants to put in much as 600 megawatts (MW) of solar power in its portfolio in the next three to four years.

“For me, at least 500 to 600 MWs in the next three to four years. We’re looking at 20 percent to 30 percent of solar power to fill in MGen’s capacity,” MGen President Rogelio Singson said after a news conference held on Tuesday.

At the moment, MGen is involved in a number of power projects, mostly coal-power plants. However, the coal-fired power projects face delay in approval of the power supply agreements (PSA) applications, a requirement before the company starts construction of its power plants.

Meralco’s PSA applications pending before the Energy Regulatory Commission cover a total of 3,551 MW with various power-generation companies.

The delay in the approval of the PSA has recently prompted the termination of an engineering, procurement and construction (EPC) contract between Redondo Peninsula Energy Inc. (RP Energy) and Korean firm Doosan Heavy Industries & Construction Co. Ltd. and local company Azul Torre Construction Inc.

RP Energy is a consortium composed of MGen, Aboitiz Power Corp. and Taiwan Cogeneration International Corp. It is the project proponent for the 2×300-MW coal-fired power plant in Subic, Zambales.

“We may have to look at another technology that is more efficient. So, we are open to it. We are talking with others. We may probably go for 600 MW or 465 MW, instead of 2×300 MW,” commented Singson, who said the revised EPC contract of Doosan is no longer viable.

Singson noted that “the window for coal is very tight” as compared to renewable energy [RE], which is very strong.”

“For MGen, we are really looking at very fast movement in RE, in particular solar and solar plus battery. Prices are dropping much faster even than the prediction. So, it’s incumbent for Meralco to look at solar. Our main concern, however, is the land. For every 1 MW, you need at least 2 hectares,” Singson said.

Singson added MGen might take in partners for its interest in solar. “Yes, we’re looking for partners. These are foreign firms.”