Meralco eyes 300MW supply contract on H1 2017

MANILA, Philippines - Manila Electric Co. (Meralco) is looking to contract up to 300-megawatts (MW) of capacity by the first half of 2017 as it moves to lock-in long-term electricity requirements of its franchise area.

Meralco president and CEO Oscar Reyes said the power distributor has so far completed contracting baseload capacity and is now in the process securing mid merit capacity, which could be from gas or geothermal plants.

“I think for our baseload we are sort of already contracted. We’re in discussions for mid merit [capacity], let’s put it as gas… It can also be some other mid merit plants because you can have a mid merit (capacity from) geothermal,” Reyes said.

Baseload power plants can provide the minimum level of demand in a grid over 24 hours while mid-merit plants are those that can fill the gap between baseload and peaking plants which run during peak hours.

Meralco is drawing up plans on how much is needed as looks for a power supplier in the mid merit category, Reyes said.

He said the Luzon grid is growing at a rate of 450 MW per year, depending on the expansion of the economy, population growth and amount of disposable income from consumers.

“We are trying to determine what’s the capacity that will be required. That’s still in the process… It could be 300 MW plus or minus,” he said.

The company official said negotiations for the mid merit capacity is seen within the next six months or in the first half of 2017.

“Maybe with all the changes that are happening, I think its going to be a matter between us and whoever the supplier or provider of power,” Reyes said. “We’re probably finalizing the contract within the first half of next year.”

In another interview, Meralco SVP and head for customer retail services and corporate communications Alfredo Panlilio said the power distributor’s customer count is expected to reach six million by September or October.

Earlier this year, Meralco signed power supply deals with seven generation companies for a totalof 3,551-MW baseload capacity in the next six years, pending regulatory approvals.

These include a 225-MW supply from Redondo Peninsula Energy Inc. (RP Energy), up to 400 MW from St. Raphael Power Generation Corp., 1,200-MW supply from Atimonan One Energy Inc., up to 528 MW from Central Luzon Premiere Power Corp. (CLPPC) and Mariveles Power Generation Corp. (MPGC), 70 MW from Panay Energy Development Corp. (PEDC) and 600 MW from Global Luzon Energy Development Corp. (GLEDC).

As of the first half, Meralco distributed electricity to over 5.7 million in Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna and Quezon.