MANILA, Philippines - The Manila Electric Co. (Meralco) is planning to buy more power from the Montalban Methane Power Corp. (MMPC).
Meralco president Jose de Jesus said this move is consistent with the company’s aim to shore up its participation in the country’s renewable energy development program.
Last week, Meralco has announced that it had signed a power purchase agreement with MMPC to buy power from the latter’s 8.19 megawatt (MW) methane-run power facility in Rodriguez, Rizal.
MMPC has plans of building up two new power facilities within the Meralco franchise area.
The Meralco chief said the power purchased by MMPC will be used as peaking plants or those being utilized during the day when demand for electricity is high.
Thus, he said buying power from MMPC will not have an impact on the volumes being sourced from its present independent power producers (First Gas Corp.’s natural gas power plants), the National Power Corp. and the wholesale electricity spot market.
According to the Meralco official, rates from MMPC’s facilities should be cheaper by less than a peso per kwh compared with its other suppliers as the former’s existing and proposed plants are within Meralco’s franchise area. This allows for savings on transmission charges billed to its customers.
MMPC is a joint venture between Zamora-led Tranzen Group Inc. and Carbon Assets Fund, a majority owned company of United Kingdom-based Carbon Capital Markets.
The facility draws its fuel from methane produced in the Montalban landfill, which hosts around 1,500 tons of garbage a day.