Meralco to increase rates for January

By Eireene Jairee Gomez January 9, 2021

https://www.manilatimes.net/2021/01/09/business/business-top/meralco-to-increase-rates-for-january/825226/

Consumers can expect to pay more for electricity for January after the Manila Electric Co. (Meralco) announced a power rate hike, its first after a series of reductions last year.

In a briefing, Meralco Vice President and Spokesman Joe Zaldarriaga said the power distributor would raise rates by P0.2744 per kilowatt-hour (kWh) this month.

The increase is equivalent to an additional P55 in electric bills for households consuming 200 kWh monthly; P82 for those consuming 300 kWh; P100 for those consuming 400 kWh; and P137 for those consuming 500 kWh.

Zaldarriaga pointed to a higher generation charge for the increase, saying the “January 2021 (P4.4574/kWh) generation charge is P0.3058 higher than that of December (P4.1516/kWh), and [those of] PSAs (power supply agreements) and IPPs (independent power producers) increased by P0.27 and P0.24/kWh, respectively.”

Power demand last month fell to its lowest level since the government first lifted in June the enhanced community quarantine imposed in mid-March, according to the executive.

The government implemented a Luzon-wide lockdown on March 17 to curb the spread of the coronavirus in the country, two weeks after the first local infection was reported. The strict quarantine had forced most people to stay home to avoid transmission and most businesses to suspend operations, crippling many economic activities.

Peak demand in Luzon in December decreased by 252 MW to 9,634 MW from 9,886 MW on account of cooler temperatures and more nonworking holidays.

Meanwhile, the Wholesale Electricity Spot Market rate dropped by P0.6135/kWh.

 

The announcement came after the Energy Regulatory Commission (ERC) had ordered Meralco to refund consumers for overcollecting pass-through charges while collecting underrecoveries in a two-year period.

The initial impact on residential customers is a net refund of around P0.1150/kWh.

The refund of transmission overrecoveries and transmission charge for home customers resulted in a reduction of P0.0236/kWh, while taxes and other charges posted a net decrease of P0.0078/kWh despite the approved increase in the feed-in tariff allowance (FiT-All).

The company’s collection of the universal charge-environmental charge amounting to P0.0025/kWh also remains suspended on the ERC’s order.

On the anticipated negative reception to the rate increase by consumers still struggling to cope with the Covid-19 crisis, Zaldarriaga pointed to his company’s decision to impose a moratorium on power disconnections last March to help them out.

“It has been 10 months. Napakahabang palugit na ang binigay natin (The extension we gave has been very long),” he said.

Meralco has no choice but to collect now, the official added, considering “we have to consider the viability of our operations, as well.”
Verify refunds

Also on Friday, the Energy Regulatory Commission (ERC) announced it had tapped an auditing firm as consultant to verify if Meralco’s reported refunds are accounted for, returned or credited to its customers’ accounts.

In a statement, ERC Chairman and Chief Executive Officer Agnes Devanadera said the regulator’s bids and awards committee awarded to Roxas Cruz Tagle and Co. the contract for the task following a bidding process.

The firm, she added, “submitted the highest rated and responsive bid” and “has also complied with all the legal, technical, and financial requirements for the” project.

“The commission is of the view that regulation must be borne by the government, so we have allocated a budget for the engagement of an independent consultant that will conduct the audit and verification of Meralco refunds,” Devanadera said.

Meralco hikes rates, will resume disconnections

Danessa Rivera (The Philippine Star) - January 9, 2021 - 12:00am
https://www.philstar.com/headlines/2021/01/09/2069193/meralco-hikes-rates-will-resume-disconnections

MANILA, Philippines — Customers of Manila Electric Co. (Meralco) will see higher electricity bills at the start of the year, reflecting an increase in generation charge.

The power utility will also start issuing disconnection notices to customers for non-payment of bills since last year.

At a virtual briefing yesterday, Meralco spokesman Joe Zaldarriaga said January rates increased by P0.2744 per kilowatt-hour from last month’s P8.4753 per kwh to P8.7497 per kwh.

This is equivalent to an increase of around P55 in the total bill of residential customers consuming 200 kwh, P82 for 300 kwh, P110 for 400 kwh and P137 for 500 kwh.

Despite the rate increase, Zaldarriaga said this month’s overall rate is still P0.70 per kwh lower than January 2020’s rate of P9.4523 per kwh, largely because of power rate reductions totaling a P1.39 per kwh net overall rate for the entire 2020.

The Meralco official also said the order of Energy Regulatory Commission (ERC) to refund and recover pass-through charges mitigated this month’s rate increase.

The order, which directed Meralco to refund over-recoveries in transmission and other charges in three months and to collect an under-recovery in the generation rate in 24 months, will reflect a net refund of P0.1150 per kwh to residential customers.

The overall rate increase was mainly brought about by higher generation charge, the electricity bill’s biggest component.

January generation charge was P4.4574 per kwh, P0.3058 per kwh higher than December’s generation charge of P4.1516 per kwh.

PSA (power supply agreement) and IPP (independent power producer) rates increased by P0.2723 and P0.2428 per kwh, respectively, as Luzon peak demand in December decreased by 252 megawatts from 9,886 MW to 9,634 MW due to cooler temperature and more non-working holidays compared to November.

The demand for power in Meralco’s franchise area in December fell to its lowest level since lifting of the enhanced community quarantine (ECQ) in May.

“Lower demand led to fixed costs from power suppliers being spread over lower energy volume, resulting in higher effective generation rates to consumers,” the firm said.
WESM rate down

Meanwhile, wholesale electricity spot market rate decreased by P0.6135 per kwh. PSAs, IPPs and WESM provided 56.4 percent, 37.3 percent and 6.3 percent of Meralco’s energy requirements, respectively.

In terms of other charges, the transmission charge for residential customers registered a reduction of P0.0236 per kwh due to the refund of transmission over-recoveries, while taxes and other charges registered a net decrease of P0.0078 per kwh, despite the recently approved increase in Feed-in Tariff Allowance (FIT-All).

Last month, the ERC authorized the collection of a FIT-All of P0.0983 per kwh starting this month. This means a P0.0488 per kwh increase in the FIT-All this month, from the previously approved FIT-All of P0.0495 per kwh.

The collection of the universal charge-environmental charge amounting to P0.0025 per kwh remains suspended, as directed by the ERC.

Meralco’s distribution, supply and metering charges, meanwhile, have remained unchanged for 66 months, after these registered reductions in July 2015.



Disconnection

Meralco is also encouraging customers with unpaid bills to start settling their obligations.

“We’re encouraging (them) to settle already. It’s been quite some time. There really is no recourse on our part but to collect, considering also that we have to consider the viability of our operations,” Zaldarriaga said.

Starting this month, Meralco will start sending disconnection notices to 201 kwh and above customers with unpaid accounts.

On the other hand, those consuming 200 kwh and below have until the end of the month to enjoy the no disconnection policy.

“We have already started to issue the (disconnection notices) for those with arrears and whose accounts remain unpaid,” Zaldarriaga said.

“For customers consuming 201 kwh and above, we will already be effecting the collection of their arrears. Those 200 kwh and below have until end January,” he said.

The Meralco official, however, said those who receive disconnection notices would be given enough time to settle their bills.

“By next week, we may be implementing already the collection due and demandable, and possible disconnection as well,” Zaldarriaga said.

Last month, Meralco extended the grace period for unpaid electricity bills until the end of January, benefitting more than three million customers with consumption of 200 kwh and below during the billing month of December.

This represents around 47 percent of Meralco’s total customer base, Meralco president and CEO Ray Espinosa said.

The extension of the grace period came after the request of Speaker Lord Allan Velasco to keep the lights on during the Christmas season.

DOE starts bid process for 22 hydro, steam project sites contracts

By: Ronnel W. Domingo - 05:12 AM January 08, 2021
https://business.inquirer.net/315334/doe-starts-bid-process-for-22-hydro-steam-project-sites-contracts

The Department of Energy (DOE) has launched the latest bidding process for service contracts related to 22 potential sites for hydro and geothermal projects across the country, setting Feb. 15 as the deadline for submission of offers.

Held last Jan. 5, the kickoff of the program dubbed “3rd Open and Competitive Selection Process” (OCSP3) also entailed a presubmission conference for interested parties.

“The DOE is encouraged by the active participation of 114 future investors that will help further accelerate the development of renewable energy in the country,” Energy Secretary Alfonso Cusi said in a statement.

But according to information from the DOE, the 114 who attended the meeting included—in addition to interested bidders—“various stakeholders … (representatives of) local government units and national government agencies.”

The formal launch of OCSP3 follows a stakeholders’ consultation that the DOE held in July 2020.

The program covers 22 “predetermined areas” or PDAs, of which 17 are suitable for hydro power projects and five for geothermal energy projects.

All together, the 22 PDAs represent a potential aggregate power generating capacity of 150 megawatts—an average of about 7 MW per site.

There is enough technical data on these sites that are available and may serve as initial reference for those who are interested to acquire rights to develop the projects, according to the DOE.

Bid documents will be opened on the day of the deadline for submission, Feb. 15. The DOE plans to have awarded by April 14 contracts that will not be covered by a financial and technical assistance agreement (FTAA). Contracts that will be covered by an FTAA are scheduled to be forwarded to the Office of the President by April 19.

ERC: 3rd party to audit past Meralco refunds

posted January 08, 2021 at 08:10 pm by Alena Mae S. Flores
https://manilastandard.net/mobile/article/343930

The Energy Regulatory Commission said Friday it engaged the services of an independent party to audit Manila Electric Co.’s refunds in the previous years.

ERC said in a statement Roxas Cruz Tagle and Co., an accounting and auditing firm, would look at whether the reported refunds of Meralco were fully accounted for, returned or credited to customers’ accounts.

ERC also ordered Meralco in previous years to refund the bill deposit, meter deposit and income tax that it collected from its customers.

“Our bids and awards committee has already completed its bidding process and has awarded the contract for the procurement of consulting services for the audit and verification of the Meralco refunds to the bidder that submitted the highest rated and responsive bid and which has also complied with all the legal, technical, and financial requirements for the said procurement project,” ERC chairperson Agnes Devanadera said in a statement.

Meralco bares P0.27 per kWH rate increase

posted January 08, 2021 at 08:55 pm by Alena Mae S. Flores
https://manilastandard.net/mobile/article/343939

Power retailer Manila Electric Co. announced Friday an increase of P0.2744 per kilowatt-hour in the overall rate for a typical household to P8.7497 per kWh in January from P8.4753 per kWh in December.

The rate is equivalent to an increase of around P55 in the monthly bill of Meralco residential customers consuming an average of 200 kWh.

Meralco spokesman Joe Zaldarriaga said despite the increase, this month’s overall rate was still more than P0.70 per kWh lower than January 2020’s rate of P9.4523 per kWh.

Meralco consumers experienced a series of power rate reductions in 2020 amounting to P1.39 per kWh for the entire year.

Zaldarriaga said mitigating this month’s rate increase was the inclusion of Energy Regulatory Commission-approved adjustments for Meralco’s pass-through over/under-recoveries for the period January 2017 to December 2019.

The ERC, in an order released Dec. 29, directed Meralco to refund over-recoveries in transmission and other charges over a period of three months until fully refunded and to collect an under-recovery in the generation rate for 24 months until fully collected.

“The initial impact to residential customers is a net refund of around P0.1150 per kWh,” Zaldarriaga said.

He said the overall rate increase in January was driven by higher generation charges. The January generation charges amounted to P4.4574 per kWh, or P0.3058 higher than the December generation charge of P4.1516 per kWh.

Zaldarriaga said the rates of Meralco’s power supply agreements and independent power producers increased by P0.2723 and P0.2428 per kWh, respectively as Luzon’s peak demand in December decreased by 252 MW to 9,634 MW from 9,886 MW on cooler temperature and more non-working holidays compared to November.

The demand for power in Meralco’s franchise fell to its lowest level in December since the lifting of the enhanced community quarantine in May.

The lower demand led to fixed costs from power suppliers being spread over lower energy volume, resulting in higher effective generation rates to consumers, according to Meralco.

Meanwhile, the rate from the Wholesale Electricity Spot Market, the country’s trading floor of electricity went down by P0.6135 per kWh.

Meralco sourced 56.4 percent from its PSAs, 37.3 percent from its IPPs and 6.3 percent from the WESM for its supply requirements in December.

Transmission charges for residential customers registered a reduction of P0.0236 per kWh following the refund of transmission over-recoveries, while taxes and other charges registered a net decrease of P0.0078 per kWh, despite the recently approved increase in Feed-in Tariff Allowance.

ERC also authorized the collection of a FIT-All of P0.0983 per kWh effective January which resulted in a P0.0488 per kWh increase in the FIT-All this month, from the previously approved FIT-All of P0.0495 per kWh.

The collection of the universal charge-environmental charge amounting to P0.0025 per kWh was still suspended, as directed by the ERC.

Meralco’s distribution, supply, and metering charges were unchanged for 66 months.

DOE starts bid process for 22 hydro, steam project sites contracts

By: Ronnel W. Domingo 05:12 AM January 08, 2021
https://business.inquirer.net/315334/doe-starts-bid-process-for-22-hydro-steam-project-sites-contracts

The Department of Energy (DOE) has launched the latest bidding process for service contracts related to 22 potential sites for hydro and geothermal projects across the country, setting Feb. 15 as the deadline for submission of offers.

Held last Jan. 5, the kickoff of the program dubbed “3rd Open and Competitive Selection Process” (OCSP3) also entailed a presubmission conference for interested parties.

“The DOE is encouraged by the active participation of 114 future investors that will help further accelerate the development of renewable energy in the country,” Energy Secretary Alfonso Cusi said in a statement.

But according to information from the DOE, the 114 who attended the meeting included—in addition to interested bidders—“various stakeholders … (representatives of) local government units and national government agencies.”

The formal launch of OCSP3 follows a stakeholders’ consultation that the DOE held in July 2020.

The program covers 22 “predetermined areas” or PDAs, of which 17 are suitable for hydro power projects and five for geothermal energy projects.

All together, the 22 PDAs represent a potential aggregate power generating capacity of 150 megawatts—an average of about 7 MW per site.

There is enough technical data on these sites that are available and may serve as initial reference for those who are interested to acquire rights to develop the projects, according to the DOE.

Bid documents will be opened on the day of the deadline for submission, Feb. 15. The DOE plans to have awarded by April 14 contracts that will not be covered by a financial and technical assistance agreement (FTAA). Contracts that will be covered by an FTAA are scheduled to be forwarded to the Office of the President by April 19.

More bidders for geothermal, hydro contracts seen this year

Danessa Rivera (The Philippine Star) - January 8, 2021 - 12:00am
https://www.philstar.com/business/2021/01/08/2068887/more-bidders-geothermal-hydro-contracts-seen-year

MANILA, Philippines — The Department of Energy (DOE) expects more companies to bid for hydropower and geothermal contracts in the open and competitive selection process (OCSP 3) in support of the country’s clean energy transition.

“This initiative which aims to advance renewable energy development and utilization is consistent with our effort towards achieving energy security as well as balanced energy mix in the country,” DOE assistant secretary Robert Uy said during the virtual launch of OCSP3.

Under the third round, the DOE identified five geothermal areas with a combined capacity of 87 megawatts (MW) and 17 hydropower areas with a total of 65.4 MW capacity.

Uy said the OCSP3 was well received by stakeholders during the agency’s online consultations last year.

“We have obtained encouraging results from the series of online stakeholders, consultations undertaken in July 2020 and that we are very optimistic,” he said.

In the previous OCSP, a total of 21 predetermined areas were offered, four of which are geothermal sites with aggregate potential capacity of up to 134 MW and 17 are hydropower sites with capacity of up to 733.4 MW.

The agency only received eight offers for two geothermal concession areas and 31 proposals for 14 hydropower deals in May the same year.

OCSP3 is envisioned to help the country move forward and achieve renewable energy goals, with the support and cooperation of stakeholders, Uy said.

“The Department of Energy cannot do this alone. This OCSP3 is one of the many initiatives that we have which would help unlock the country’s renewable energy potential. Let us work together,” he said.

In the same event, DOE-Renewable Energy Management Bureau (REMB) director Mylene Capongcol said the agency expects a lot of bids and interest from energy stakeholders with various renewable energy (RE) policies put in place.

“There will be a lot of opportunities in the coming months for the RE developers as we start to implement and enforce the RE policy mechanisms,” she said.

These policies include the renewable portfolio standards (RPS) for on-grid and off-grid areas, the green energy option program (GEOP) and net metering.

Under the RPS, power players are prescribed to source a percentage of electricity requirements from RE sources.

The GEOP is a mechanism where electricity end-users are given the option to choose RE as their preferred source of energy.

Meanwhile, the net-metering program enables an ordinary electricity consumer to become a “prosumer,” where the consumer generates electricity for its own consumption, as well as sell any excess generation to the distribution grid.

“We’re now transitioning into a clean energy scenario for the Philippine power sector,” Capongcol said.

Under the service contracts, the OCSP winning bidders will have two years for pre-development for less than 50 MW and five years for at least 50 MW.

It also covers a 25-year development stage, which can be renewed for another 25 years.

DOE crafts policy on retirement of power plants

Published January 8, 2021, 7:00 AM by Myrna M. Velasco

https://mb.com.ph/2021/01/08/doe-crafts-policy-on-retirement-of-power-plants/

 

The Department of Energy (DOE) will be sorting out a policy to mark off power generation plants that shall already be retired in the country, so provision of electricity to consumers could be improved.

Energy Secretary Alfonso G. Cusi explained that the government will not just be looking at the age of the power plants, but also the facet of their operations as to how efficient and reliable these have been in delivering power supply and service to the consumers.

He noted that the energy department is similarly weighing on prospective replacements of the power facilities to be retired or to be ordered to cease their operations – primarily the type of technology that shall be deployed for their capacity replacements.

“In what we’ve been processing as power projects in the department, we’re also looking at the retirement of the old power plants,” the energy chief stressed.

He qualified though that it is not just the age or years of operations of the power facilities that are being factored in; because several power companies have opted to upgrade and reinforced the capacity of their assets through the years, so these somehow improved their efficiencies.

“We will be considering all factors – not just the age, because we need power. So we can’t just have arbitrary decision,” Cusi pointed out.

The energy secretary said they are still firming up the list as to which power plants shall already be rendered as ‘candidates for retirement’; but he noted that the DOE will not make the list public yet until after they have weighed all factors that will become the basis of their decision to terminate the operation of certain power facilities.

Many of the country’s electric generating plants were built in the 1990s with the flurry of independent power producer (IPP) investments when the Philippines was pummeled by its worst power crisis.

Several other facilities – primarily hydros and geothermal plants – were also built way back in the 1970s, being part of the energy diversification as well as energy independence strategies pursued by the State then.

Power plant technologies have their respective operating life cycles – ranging from 25-30 years to 50 years (or even 80 years with refurbishment); and even the old fleets could still be producing electricity reliably through stretch decades especially if these were operated efficiently throughout their life cycle.

Cusi cannot categorically state yet if the power plant retirements will start this year; or while the energy sector braces through transition when demand is still comparatively lower because of the economic slump caused by the pandemic.

The energy chief emphasized though that a policy will have to be crafted on it first, so the relevant stakeholders and investors will be apprised on the guidelines and they can also strategize on their investment plans moving forward.

“In the power sector, we continue to build the capacity because you know that our supply was barely meeting the 2019 demand prior to the pandemic; and we’re trying to prepare the power supply into a level where we will have normal operations already,” Cusi pointed out.

He acknowledged that gestation period for power plant projects could take some time, hence, it is highly necessary to re-calibrate policies now as it could take several years more before power supply in the country could burst through tight conditions anew.

DOE bullish on development of RE

By Lorenz S. Marasigan January 8, 2021
https://businessmirror.com.ph/2021/01/08/doe-bullish-on-development-of-re/

The Department of Energy (DOE) is bullish on the 3rd Open and Competitive Selection Process (OCSP3), which will further accelerate the development of renewable energy (RE) in the country, after its launch and pre-submission conference yielded interest from 114 participants.

OSCP3 identifies 22 pre-determined areas that cover 5 geothermal and 17 hydropower resources with a total potential capacity of roughly 150 megawatts (MWs).

“We have obtained encouraging results from the series of online stakeholders’ consultation we undertook in July 2020 and that we are very optimistic in this OCSP3,” Energy Assistant Secretary Robert B. Uy said in a statement.

According to indicative timelines released by the department, the deadline for the submission of bid documents is on February 15. The contracts for the financial and technical assistance (FTAA) projects will be awarded on April 19, while the non-FTAAs will be awarded on April 14.

Energy Undersecretary Emmanuel P. Juaneza said the DOE is committed to promote RE resources, noting the recent declaration of a moratorium on endorsements for greenfield coal power projects is a manifestation of the DOE’s vision for energy future.

“[Energy] Secretary [Alfonso G.] Cusi himself reiterated the commitment to promote our renewable energy, with the hope that in time, renewables will figure prominently in the country’s energy future,” Juaneza said.

The DOE said many opportunities await the RE investors considering that all policies to support the market for RE are now in place and implemented such as the Renewable Portfolio Standards, Green Energy Option Program, the Enhanced Net Metering and the RE Market establishment.

In 2019, the share of RE in the country’s generation mix stood at 20.8 percent from 23.38 percent in 2018. Coal continues to dominate the mix at 54.6 percent, followed by gas at 21.1 percent and oil at 3.5 percent.

DOE eyeing 114 prospective bidders in new hydro, geothermal projects

Published January 8, 2021, 7:00 AM by Myrna M. Velasco
https://mb.com.ph/2021/01/08/doe-eyeing-114-prospective-bidders-in-new-hydro-geothermal-projects/

The Department of Energy (DOE) is eyeing 114 prospective bidders in the 22 geothermal and hydropower ventures that it is offering to investors via the third open and competitive selection process (OCSP-3), an auction system in the award of service contracts for renewable energy (RE) projects.

The department formally launched its third round of OCSP on January 5; and had dangled pre-determined areas (PDAs) of at least five geothermal and 17 hydropower projects – that if taken together could yield up to 150 megawatts.

The last day of submission of bid documents will be on February 15; and the opening of offers will also be undertaken on the same day.

“The DOE is encouraged by the active participation of 114 future investors that will help further accelerate the development of renewable energy in the country,” Energy Secretary Alfonso G. Cusi has noted.

The entry of foreign investors in geothermal in particular shall be underpinned by the Financial and Technical Assistant Agreement (FTAA), as earlier set forth by the energy department.

“Target contract awarding for non-financial and technical assistance projects will be on April 14, 2021, while those covered by the FTAA will be endorsed to the Office of the President for approval by April 19, 2021,” the DOE has specified.

For the targeted foreign investors in geothermal, the prescribed minimum capitalization had been pegged at US$50 million and it shall cover integrated steam resource development and power plant installation.

The DOE apprised investors that the PDAs “have sufficient available technical data to serve as initial reference by those who are interested to acquire rights to develop the RE resources.”

The five geothermal areas on offer include the 27-megawatt Daklan geothermal project; 9.0MW Itogon;

17MW Putting Lupa; 4.0MW Maricaban Island; and 30MW Mt Labo geothermal projects.

For proposed hydro facilities, these are the 0.8 Amlan Plant C; 3.2MW Amlan Plant A; 4.8MW Hilabangan Upper Cascade; 3.0MW Hilabangan Lower Cascade; 4.5MW Maninila Lower Cascade; 3.1MW Upper Cascade; 2.1MW Tibiao; 3.0MW Dalanas; and 4.0MW Sibalom Middle Cascade projects.

The others are: 3.0MW Aklan River Lower East; 2.4MW Aklan River Middle West; 2.4MW Aklan River Upper West; 0.3MW Vera Falls; 0.2MW Palali; 0.2MW Coyaoyao; 1.4MW Dapnan; and 52MW Balintingon hydroelectric power ventures.

During the launch and pre-submission conference on the auction for the specified RE ventures, Energy Assistant Secretary Robert Uy indicated that this is part of the government’s step to “help unlock the country’s RE potentials.”

He added “we have obtained encouraging results from the series of online stakeholders’ consultation we undertook in July 2020 and that we are very optimistic in this OCSP-3.”

The energy department has been aggressively enticing foreign firms to invest in the country’s geothermal projects, although it was still failing on its initial attempts.

Energy Undersecretary Emmanuel Juaneza further sounded off the department’s commitment “to promote renewable energy, with the hope that in time, renewables will figure prominently in the country’s energy future.”

Meralco unit buys stake in PFBSI for P159M

By Jordeene B. Lagare January 8, 2021
https://www.manilatimes.net/2021/01/08/business/companies/meralco-unit-buys-stake-in-pfbsi-for-p159m/824625/

The power generation arm of the Manila Electric Co. (Meralco) is acquiring a 20-percent stake in PowerSource First Bulacan Solar Inc. (PFBSI) for P159 million.

In a disclosure of Thursday, the listed electricity distributor said unit Meralco PowerGen Corp. (MGen) would buy the stake through its wholly owned subsidiary MGen Renewable Energy Inc. (MGreen).

The transaction would raise MGen’s stake in PFBSI from 40 percent to 60 percent.

PFBSI is constructing a 50-megawatt utility-scale solar facility in Bulacan’s San Miguel town.

The P4.25-billion project covers a land area of 72 hectares. It is expected to begin commercial operations in the first quarter.

The facility is 74.31-percent complete as of Oct. 12, 2020, after its construction resumed last May.

The acquisition is in line with MGen’s goal to diversify and increase investment in the renewable energy sector.

“The acquisition increases the attributable and net sellable capacity of MGreen, which is in line with MGen’s goal of building a portfolio of 1,000-MW renewable energy projects in the next five to seven years,” Meralco said.



Prior to the deal, PFBSI is co-owned by MGreen (40 percent), Powersource Energy Holdings Corp. (36 percent), and Sunseap Philippines Solar Holdings PTE Ltd. (24 percent).

Incorporated in 2015, PFBSI is into the construction and operation of solar-powered generation facilities, among others.

Meralco shares dropped by P2 or 0.67 percent to close at P297 apiece on Thursday.

Higher Meralco charges in January bill

By: Krissy Aguilar - January 08, 2021
https://newsinfo.inquirer.net/1381144/higher-meralco-charges-in-january-bill

MANILA, Philippines — Customers of Manila Electric Company (Meralco) will see an increase in their power bills as they enter the new year.

After back-to-back reductions in 2020, Meralco announced on Friday that overall rates increased by P0.2744 per kilowatt-hour (kWh) this January to P8.7497 from December 2020’s P8.4753.

“This is equivalent to an increase of around P55 in the total bill of residential customers consuming 200 kWh,” Meralco said in a statement.

Meralco attributed the rate hike to a higher generation charge which now costs P4.4574 per kWh, or P0.3058 higher than December’s generation charge of P4.1516 per kWh.

Power demand in Luzon decreased in December because of cooler temperatures and more non-working holidays compared to November.

Meralco said the lower demand led the Power Supply Agreements and Independent Power Producers rates to increase by P0.2723 and P0.2428 per kWh, respectively.

“Lower demand led to fixed costs from power suppliers being spread over lower energy volume, resulting in higher effective generation rates to consumers,” the company said.

Meanwhile, Wholesale Electricity Spot Market charges decreased by P0.6135 per kWh while the transmission charge for households decreased by P0.0236 per kWh due to refunds of excess collections.

DoE accepts bids for potential RE resources

January 8, 2021 02:30 AM By Maria Romero
https://tribune.net.ph/index.php/2021/01/08/doe-accepts-bids-for-potential-re-resources/


The Department of Energy (DoE) said it has started accepting bids for 22 predetermined areas for potential geothermal and hydropower resources to accelerate the country’s renewable energy (RE) development.

In its 3rd Open and Competitive Selection Process (OCSP), the DoE bared 17 predetermined areas for hydropower projects and five potential sites for geothermal energy development.
According to the DoE, these predetermined areas have potential capacity to generate 150 megawatts (MW) of RE.

During the third OCSP kick-off, DoE Undersecretary Emmanuel Juaneza said the department continues to encourage and promote the exploration, development and utilization of RE.

In October 2020, DoE Secretary Alfonso Cusi declared a moratorium on endorsing greenfield coal power projects.

According to him, the new policy will maneuver the country to shift to a new, cleaner and indigenous source of power.

In a related development, Meralco Powergen Corporation (MGen), through its renewable energy arm MGen Renewable Energy Inc. (MGreen), has raised its stake in its first solar power project for P158 million.

MGen on Thursday said its total stake in Powersource First Bulacan Solar Inc. (PFBSI) is now at 60 percent after successfully acquiring an additional 20 percent equity.

The acquisition augments the attributable and net sellable capacity of MGreen.

PFBSI will sell energy to MGen under an approved power supply agreement (PSA).

MGen president and CEO Rogelio Singson bared that the P4.25 billion project, which has a capacity of 50 megawatts on a 72-hectare land, is expected to begin commercial operations in the first quarter of this year.

The construction of the project began in late 2019 and was supposed to start operation by end of 2020, but was delayed due the pandemic.

NGCP plans $1-billion IPO

Published January 7, 2021, 12:15 PM by Bloomberg

https://mb.com.ph/2021/01/07/ngcp-plans-1-billion-ipo/

 

National Grid Corp. of the Philippines is planning an initial public offering that could raise as much as $1 billion, according to people with knowledge of the matter.

The high-voltage electricity network operator, commonly known as NGCP, has invited several banks to submit proposals for the share sale in Manila, said the people, who asked not to be identified as the information is private.

At $1 billion, NGCP’s IPO would be the biggest ever in the Philippines, according to data compiled by Bloomberg. The deal would eclipse Robinsons Retail Holdings Inc.’s first-time share sale which raised $621.1 million in 2013, the largest in the Southeast Asian nation to date, the data show.

Deliberations are at an early stage and details of the offering such as size and listing structure could still change, the people said.

NGCP has always been preparing for the IPO with compliance to its franchise, Mutya Alabanza, its head of external affairs, said in response to Bloomberg News query. “We were previously advised that market conditions may not be ideal at the moment, but we continue to take steps to prepare for an eventual IPO,” she said.

NGCP was created when a consortium that includes State Grid Corp. of China in 2007 won the 25-year concession to run the nation’s power transmission network. Synergy Grid & Development Phils Inc. President Henry Sy, Jr. and Prudential Guarantee & Assurance Inc. Chairman Robert Coyiuto Jr. are also shareholders in the company. NGCP officially started in 2009, according to its website.

Under a law signed in 2008 that granted NGCP the franchise, the network operator is required to make a public offering of at least 20% of its outstanding capital within 10 years from the start of operation.

The listing plan comes after the country’s energy regulatory commission denied NGCP’s request to further extend the deadline for the share sale. Senator Win Gatchalian in October urged the watchdog to issue an ultimatum on NGCP to comply with the requirement.

Meralco subsidiary buys 20% stake of Singaporean solar project partner

Published January 7, 2021, 4:22 PM by Elisor Recide
https://mb.com.ph/2021/01/07/meralco-subsidiary-buys-20-stake-of-singaporean-solar-project-partner/

Meralco PowerGen Corporation (MGen), the power generation investment arm of Manila Electric Company, has acquired 20-percent of the shareholdings held by its Singaporean firm-partner Sunseap in the 50-megawatt PowerSource First Bulacan Solar Inc. (PFBSI) project.

With the equity purchase, MGen has already hiked its aggregate shareholdings in the solar venture to 60-percent from previously at 40-percent. The shares were bought via MGen subsidiary MGreen or Meralco Renewable Energy.

Sunseap’s shareholdings in PFBSI had been 24-percent prior to the MGen acquisition. The other shareholder is PowerSource Energy Holdings Corporation with 36-percent, a company led by businessman Aloysius Colayco.

In a disclosure to the Philippine Stock Exchange (PSE), Meralco stated that the transaction with Sunseap involved the divestment of the latter’s 315,839 shares in PFBSI venture.

The transaction value had been placed at P158,950,300, according to the Meralco firm, noting further that “the acquisition is in line with MGen’s goal to diversify and increase investment in the renewable energy sector.”

Meralco added the shares purchase “increases the attributable and net sellable capacity of MGreen, which is in line with MGen’s goal of building a portfolio of 1,000MW renewable energy projects in the next 5 to 7 years.”

MGen President and CEO Rogelio L. Singson constantly noted that the RE capacity buildup of the company will be done through asset acquisitions and installations of greenfield capacities.

The PowerSource Bulacan solar farm will reach commercial stream by first quarter of this year; and its generated electricity has been committed to Meralco via a power supply agreement.

The medium term project development trajectory of MGreen had been anchored on solar as well as wind power developments; and these are targeted in various parts of the country.

RE is the next ‘big game” of industry players in the Philippine energy sector, and this will be chiefly anchored on advancing the State-underpinned Renewable Portfolio Standards (RPS), a policy that will provide market to RE projects by mandating the distribution utilities to source a prescribed percentage of their supply from these clean energy capacities.

For MGen, the RE investment platform will complement its proposed thermal plant installations which may kick-off with the blueprinted 1,200MW Atimonan project in Quezon province.

50-MW Bulacan solar project to open in Q1

posted January 07, 2021 at 07:30 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343857/50-mw-bulacan-solar-project-to-open-in-q1.html

Meralco PowerGen Corp., which took a majority stake in PowerSource First Bulacan Solar Inc., expects the completion of a 50-megawatt solar power plant in the first quarter.

Manila Electric Co. said in a disclosure to the stock exchange Thursday that unit MGen acquired an additional 20-percent equity in PFBSI through wholly-owned subsidiary MGen Renewable Energy Inc. to bring up indirect holdings to 60 percent. Meralco owns 100 percent stake in MGen.

“The acquisition is in line with MGen’s goal to diversify and increase investment in the renewable energy sector,” Meralco said.

PFBSI was registered with the Securities and Exchange Commission on Oct. 29, 2015. The company is engaged in the development, construction and operation of solar-powered generation facilities and is constructing a 50-MW utility scale solar facility in San Miguel, Bulacan. The project is estimated to cost P4.2 billion.

AboitizPower stands firm in 2020, hopeful for 2021

January 7, 2021
https://dailyguardian.com.ph/aboitizpower-stands-firm-in-2020-hopeful-for-2021/

BEYOND THE HORIZON. Engineers at the baseload facility operated by AboitizPower subsidiary Therma South, Inc. (TSI) in Davao City look toward the horizon, an act symbolic of the AboitizPower Group’s forward-looking mindset in 2021.

AboitizPower had high hopes for 2020 as it anticipated the realization of its growth strategy over the next decade.

But three months into what AboitizPower thought would be a stellar year, the COVID-19 crisis brought about an unprecedented impact on the power company, forcing it to transition from significantly growing the business to keeping it afloat, and from expanding the organization to making necessary adjustments in its workforce.

Despite all this, AboitizPower remains committed to advancing business and communities by continuing to provide reliable, reasonably priced, and responsibly produced power solutions even in the new normal.

“The year 2020 may not have been what we expected, but it was the year that revealed how resilient we are as an organization, manifested by the group’s successes in spite of the challenges it faced in the last nine months,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said.

True to its mantra of business with a purpose, the AboitizPower Group and the Department of Energy (DOE) successfully turned over around P650 million in direct remittances under the Energy Regulations No. (ER) 1-94 program to various host communities across the country as of Dec. 28, 2020.

The ER 1-94 program is a policy under the DOE stipulating that communities hosting power generation plants get a share of one centavo per kilowatt-hour generated by facilities operating in their area.

With a circular from Secretary Alfonso G. Cusi of the DOE covering ER 1-94 funds, host LGUs can also use these shares to help manage the effects of the new virus, in accordance with the Bayanihan to Heal as One Act. This includes the facilitation of mass testing by providing and constructing facilities, as well as acquiring proper medical testing kits.

Among the other highlights of 2020 for AboitizPower was the renewal of its pact with First Bay Power Corp. (FBPC) on the supply of Cleanergy, the company’s brand for renewable energy, which will help power the livelihood and development of the municipality of Bauan, Batangas.

This renewed partnership between the two companies signals the start of the delivery of 10 MW of clean power to First Bay from AP Renewables, Inc.’s (APRI) MakBan geothermal facility. This further aligns with the thrust of the Aboitiz Group to grow its Cleanergy portfolio and position itself as a major player in the renewable energy space.

Beyond staying true to its commitment to growing its business and empowering its host communities, AboitizPower also remained steadfast in its drive for operational excellence in 2020. Despite the challenges the year has brought, the organization still bagged several awards and recognitions throughout the year.

AboitizPower won a Silver Stevie Award for its Integrated Response and Awareness towards COVID-19 Hazards (I-REACH) program under the Most Valuable Corporate Response category in the 2020 International Business Awards, underscoring the company’s proactive approach in dealing with the pandemic.

AboitizPower was also recognized for the third year in a row as a constituent company in the FTSE4Good Index Series which measures the performance of companies demonstrating strong Environmental, Social, and Governance (ESG) practices and is used by a variety of market participants to create and assess responsible investment funds and other products.

On top of these, the holding company Aboitiz Power Corporation also received ISO re-certification from the standards body International Organization for Standardization, further demonstrating the organization’s commitment to operational excellence even amidst the global health crisis.



THE POWER OF CLEANERGY. AboitizPower’s 59-megawatt-peak solar power facility in San Carlos City, Negros Occidental, is among the organization’s assets that make up its Cleanergy portfolio. THIS solar farm helps prevent the emission of more than 44,000 tons of carbon dioxide over 20 years, which is equivalent to taking around 10,000 cars off the road.

In the next 10 years, the company is set on significantly expanding its portfolio of renewable energy power plants and by 2030, its capacity mix will have been transformed into an almost 50:50 Thermal to Cleanergy ratio.

“Our targets in the next decade remain the same. We will continue to pursue a major shift in our energy mix by 2030, but while we remain focused on addressing the country’s energy trilemma of energy security, energy equity, and environmental sustainability, we will be shifting the balance from ensuring low-cost energy to providing energy from more sustainable sources,” Rubio added.

With its balanced mix strategy, AboitizPower is able to provide the country with a reliable and cost-efficient power supply, creating a greener and safer environment for the country and the rest of the world.