Meralco-Solar power-supply deal okayed

By Lenie Lectura -March 5, 2020
from Business Mirror

Meralco networks crew are seen replacing a 60-foot pole along Eulogio Rodriguez Jr. Avenue (C5) in Barangay Ugong, Pasig City, in this 2017 file photo.

The Energy Regulatory Commission (ERC) has approved the power deal between the Manila Electric Co. (Meralco) and Solar Philippines Tanauan Corp. (SPTANC).

Meralco said on Wednesday that the commission’s decision on the Power Supply Agreement (PSA) application was promulgated on February 28, more than three years since the PSA was executed. The PSA is valid for 20 years.

The approved rate is P5.39 per kilowatt hour (kWh), subject to 2 percent annual escalation as provided in the PSA.

Meralco said the PSA was executed in support of renewable energy and the rate approved by the ERC is significantly lower than the prevailing solar feed-in-tariff rates, which is P8.69 per kWh.

Under the PSA, SPTANC will supply 25 megawatts (MW) from its solar farms in Tanauan, Batangas, and another 25MW from its solar power plant in Naic, Cavite.

Meanwhile, the ERC has set on March 26 the hearing on SPTANC’s application to develop and own a dedicated transmission facility to connect its Tanuan solar plant to Meralco.

“In order to ensure unhampered supply of electricity, particularly in Luzon, SPTANC has undertaken to construct and own the transmission lines which will connect its Tanuan Power Plant by a bus-in scheme to Meralco’s CIP2 115kV line,” SPTANC said in its application filed with the ERC.

The said transmission line will terminate at a constructed 115kV switching station located in Calamba, Laguna. This station serves to accommodate the said lines that will cut-in to Meralco’s 115kV line.

“Finding the said application to be sufficient in form and in substance with the required fees having been paid, the same is hereby set for determination of compliance with the jurisdictional requirements, expository presentation, pre-trial conference and presentation of evidence on March 26, 2020 at 2 p.m., at the ERC hearing room,” the ERC order stated.

Meralco sources additional peaking capacity through bilateral power supply contracts to ensure continuous and reliable electricity for its customers.

The company has a legislative franchise to operate and maintain a distribution system in cities and municipalities of Metro Manila, Bulacan, Cavite and Rizal and some areas in Batangas, Laguna, Quezon and Pampanga.

Image Credits: Meralco Photo