Prime Infra’s arm Ahunan pitches PSH to Meralco

BY LENIE LECTURA – JULY 18, 2022
from Business Mirror

A SUBSIDIARY of Razon-led Prime Infrastructure Capital Inc. (Prime Infra) has submitted an offer to the Manila Electric Company for the supply of 500 megawatts (MW) of mid-merit power using pumped storage hydropower (PSH) as an energy storage system.

Meralco said Sunday that its Third-Party Bids and Awards Committee (TPBAC) has granted the original proponent status to Ahunan Power, Inc. (Ahunan) for its offer, which is subject to competitive challenge under the rules of the Department of Energy. This means that Ahunan has the right to match any comparative proposals.

“We are pleased to continue putting forward innovative solutions to Meralco and consequently having been granted the Original Proponent status to Ahunan. We look forward to the opportunity of further providing renewable energy sources that are reliable and sustainable,” said Prime Infra Chairman Enrique K. Razon, Jr.

Ahunan has nominated two PSH plants, either of which can supply the needed 500MW energy under its offer. The first is located in Laguna and is already undergoing pre-development by Ahunan. The second is a PSH plant in Wawa, Rizal under pre-development by Olympia Violago Water & Power, Inc. (OVWPI). Ahunan has entered into an agreement to acquire a controlling interest in OVWPI.

Ahunan and OVWPI have a total hydro service contracts of 1,200MW and 500MW net dependable capacity, respectively. This represents an additional 8 percent dependable installed capacity to the Philippine grid. The development of PSH plants also represents a move away from the traditional oil- or gas-based power for mid-merit and peaking. Lastly, the PS is an Energy Storage System, which allows greater penetration of renewable energy sources as it can both absorb and generate electricity to follow the variability of wind and solar plants.

Ahunan’s PSH plants have a capability of a minimum guaranteed output of 12 hours per day covering the peak hours of Meralco.

“This project is a testament to our goal of integrating ESG (Environmental, Social, and Governance) in the critical infrastructure assets that we deliver. Prime Infra will continue to pioneer energy and other infrastructure projects that are environmentally resilient and socially relevant,” said Guillaume Lucci, Prime Infra’s President and CEO.

PSH plants store and generate electricity by moving water between two reservoirs at different elevations. Water is pumped from the lower reservoir to the upper reservoir during off-peak hours to store underutilized energy. After which, it is then released from the upper reservoir to the lower reservoir to generate electricity in times of high demand.