Meralco secures 3,500 MW power supply

By Danessa Rivera (The Philippine Star) | Updated May 4, 2016 - 12:00am
http://www.philstar.com/business/2016/05/04/1579482/meralco-secures-3500-mw-power-supply

MANILA, Philippines – Manila Electric Co. (Meralco) has signed power supply deals with seven generation companies for over 3,500 megawatts (MW) of supply as it moves to secure electricity requirements once the projects start operating in the next six years.

In a disclosure to the Philippine Stock Exchange, Meralco said it filed an application with the Energy Regulatory Commission (ERC) for the approval of its recently forged power supply agreements (PSA).

The PSA shall become effective upon approval of the ERC, the firm said.

Meralco spokesperson Joe Zaldarriaga said the applications were submitted to the ERC on April 29, just before the new effectivity date of the competitive selection process (CSP) policy requiring distribution utilities (DUs) to undertake competitive bidding to secure PSAs with generation companies.

The PSAs involve a supply of 3,551 MW, which corner 81 percent of the combined output of the seven power plants.

The power distributor’s deal with Redondo Peninsula Energy Inc. (RP Energy) covers the supply of 225 MW for its baseload requirements.

RP Energy, a consortium composed of Meralco PowerGen Corp. (MGen), Aboitiz Power Corp. and Taiwan Cogeneration International Corp., is putting up a 300-MW coal-fired power plant Subic, Zambales, which is targeted for completion in 2019.

Meralco also sealed the deal with St. Raphael Power Generation Corp. (SRPGC) for the purchase of up to 400 MW of output.

SRPGC, a new joint venture between MGen and Semirara Mining and Power Corp., is constructing a 2x350 MW coal-fired power generating facility in Calaca, Batangas, which is the second expansion of the existing Calaca power plant.

Meralco is also buying the full output of Atimonan One Energy Inc., a 2x600-MW supercritical coal-fired power plant being developed by MGen.

Meanwhile, the power distributor giant forged deals with two San Miguel power plants, Central Luzon Premiere Power Corp. (CLPPC) and Mariveles Power Generation Corp. (MPGC).

Meralco will purchase up to 528 MW of capacity from both power plants.

The project proponents will each build a 4x150-MW circulating fluidized bed coal-fired power generating facility in Pagbilao, Quezon and Mariveles, Bataan.

The CLPPC plant is scheduled to start operations no later than 2021 and MPGC by 2020.

Lastly, Meralco inked power agreements with subsidiaries of Global Business Power Corp. (GBPC), Panay Energy Development Corp. (PEDC) and Global Luzon Energy Development Corp. (GLEDC).

Under the deals, Meralco will purchase up to 70 MW from PEDC and up to 600 MW from GLEDC.

PEDC operates the 2x82-MW coal-fired power generating facility in Brgy. Ingore, La Paz, Iloilo, and another 150-MW plant in the same location, which is targeted to become operational by Aug. 26, 2016.

GLEDC, on the other hand, intends to build a 2x335-MW coal-fired power generating facility in Barangay Luna, La Union, which is scheduled to become operational by 2022.