Wednesday, October 11, 2017

Meralco to underwrite P2.99/kwh solar supply deal



Published By Myrna M. Velasco

Power utility giant Manila Electric Company (Meralco) has sealed a power supply deal for 85-megawatt capacity at P2.9999 per kilowatt-hour (kwh), one that shall be setting a benchmark for low cost solar development in the country especially in the post-feed in tariff (FIT) era.
The power supply agreement (PSA) had been inked with Solar Philippines Tarlac Corporation (SPTC) for a facility to be sited in the Concepcion town of that host-province, one of the next phases of development being advanced by young businessman Leandro L. Leviste.
“This rate is significantly lower than the prevailing solar feed-in-tariff rates and a welcome development for consumers,” Meralco has noted.
As stipulated in the supply pact, the utility firm’s capacity procurement from the solar facility could be from 75 MW to 85 MW in the initial 2-5 contract years; and full 85 MW form the 6th to 20th year of the PSA.
The utility firm indicated the PSA shall be rendered effective upon the approval of the Energy Regulatory Commission. Corresponding filings would be made following the signing of the supply agreement.
“Both parties are committed to file the ERC application of the PSA on or before October 20, 2017 and secure the ERC’s issuance of a provisional authority, in time for an implementation of the PSA by January 2018,” Meralco has noted in its disclosure to the Philippine Stock Exchange.
Leviste previously told media that the committed capacity to Meralco would be part of the 175 MW developments that will be taking off from their project blueprints onward to full implementation phases.
The company said it is now constructing two projects, including a 50MW solar photovoltaic-underpinned facility sited in Tanauan, Batangas.
Leviste sounded off that the sooner the ERC grants approval to their PSA applications, including those that are still pending at the Commission, it will come off better for the consumers who will then be enjoying lower cost electricity.
This is already the second supply deal that Solar Philippines had secured with Meralco, the first one was for 50MW capacity.

No comments:

Post a Comment