Solar farm starts supply to Meralco

Danessa Rivera (The Philippine Star) - July 7, 2019 - 12:00am

https://www.philstar.com/business/2019/07/07/1932537/solar-farm-starts-supply-meralco

MANILA, Philippines — Solar Philippines Tarlac Corp. has started supplying electricity to Manila Electric Co. (Meralco), translating to lower peak rates within the franchise area of the country’s largest power distributor.

Solar Philippines said Meralco consumers will benefit from lower rates as its Tarlac solar farm starts dispatching to Meralco for this July’s billing.

The company said solar power supply is highest at midday, when power demand also peaks.

It said the start of supply from the solar farm will save Meralco from purchasing from the Wholesale Electricity Spot Market (WESM) when prices peak, and prevent rotating blackouts as have occurred over the past months.

Under the power supply agreement (PSA), Solar Philippines will sell electricity to Meralco at P2.9999 per kilowatt-hour (kwh), with two percent annual escalation.

The solar firm said this is the lowest-ever rate of any PSA in the Philippines.

 “We are proud to be the lowest-cost producer of electricity in the Philippines, and happy that Meralco’s approximately 30 million consumers will now benefit from these low costs. We thank Meralco for accelerating the adoption of renewable energy, and becoming the No. 1 consumer of solar in the Philippines,” Solar Philippines president Leandro Leviste said.

If this were to replace Meralco’s average generation rate of June 2019 of P6.0186 per kwh inclusive of VAT, this may result in savings of P3.0187 per kwh to Meralco consumers, or P603.74 for those with a 200 kWh monthly consumption.

This record-low rate was the result of Solar Philippines submitting the lowest bid in a competitive selection process (CSP), as required by the Department of Energy.

Meralco has announced plans for another CSP, which is expected to further lower costs for consumers.

With a peak capacity of 150 MW, the Tarlac solar farm is the largest solar farm in the country and the first to dispatch electricity to Meralco under a PSA.

To achieve its low costs, the project uses panels manufactured at the Solar Philippines factory, the first Filipino solar factory, and is developed, constructed, owned and operated by Solar Philippines.