Wednesday, May 29, 2019

Meralco to expand renewable energy portfolio, franchise area


Iris Gonzales (The Philippine Star) - May 29, 2019 - 12:00am

MANILA, Philippines — Manila Electric Co. (Meralco) is in talks with nearly a dozen renewable energy firms to beef up its power supply portfolio, its new president and CEO Ray Espinosa said yesterday.
Espinosa formally took the reins of  Meralco following the power giant’s  56th annual shareholders meeting.   He replaced Oscar Reyes who served as Meralco president and CEO for nine years.
Reyes received a standing ovation from the crowd of shareholders and company executives as he gave his farewell report yesterday and thanked Meralco chairman Manuel V. Pangilinan and the whole Meralco community for the opportunity to serve and lead the power firm.
In a press briefing following the shareholders meeting, Espinosa said as the new president, he would continue the direction that has already been set in place  under the leadership of Reyes, consistent with the utility firm’s mandate of ensuring the proper distribution of power to its franchise area at the least cost.
There are also plans to expand in other parts of the country.
“We want to expand in the Philippines,” Espinosa said.
He said Meralco is presently in talks with a number of solar, wind and natural gas proponents for possibly supply partnerships.
At the same time, he said Meralco would continue to utilize coal for as long as there is no state policy prohibiting it because it has the obligation to secure sources of supply that has the least cost.
“We should not demonize Meralco because of the way supply is sourced. To begin with the government has not come up with any law or regulation that prohibits absolutely the use of coal,” he said.
Thus, he said, it’s too early to say that the days of coal are numbered because  distribution utilities like Meralco have the obligation to secure sources of supply that reflect the least cost.
At the same time, he said, Meralco is very mindful of the impact of coal on the environment.
“That is high in the minds of Meralco.  How we can contribute to initiatives that prevent climate change from happening,” Espinosa said.
Espinosa said Meralco continues to face regulatory challenges. Many of its power supply applications have been stuck with the Energy Regulatory Commission.
“We want to see a more vibrant and active regulator,” he said.
Meralco, he said would heed the decision of the Supreme Court, which ruled that all power supply agreements submitted by the DUs with the ERC must undergo a competitive selection process.

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