Meralco starts sourcing power from Montalban plant

MANILA, Philippines - Manila Electric Co. (Meralco), the country’s largest power distributor, has started to source power from the eight-megawatt (MW) plant of Montalban Methane Power Corp., a top company official said.

“We have recently started to get power from Montalban Methane but at a very small level,” Meralco president Jose de Jesus said.

He said Meralco is sourcing just one MW out of the 8.19-MW it is supposed to draw from the biomass-run power facility.

“I think there was some kind of a technical problem. But the Montalban Methane officials said this will be resolved soon,” he said. “We hope that the level of power we get from Montalban Methane will pick up soon.”

De Jesus said they are committed to source more power from clean energy sources such as the Montalban facility.

“We hope to build up our clean energy sources. We are for the promotion of renewable energy sources,” he said.

Besides, he said the Montalban facilities are located within Meralco’s franchise area.

“This means that we could save from transmission costs if we draw from these clean energy power facilities,” he said.

Last June, the Energy Regulatory Commission (ERC) approved the supply contract of the two power firms in hopes of bringing down power rates.

Meralco signed a contract to purchase electricity from Montalban Methane’s power plant in Rodriguez, Rizal as part of the Lopez-controlled power utility firm’s effort to promote the use of RE sources.

“Transmission charges and losses will be avoided as the plant itself is imbedded by nature. The said plant will provide voltage support to Meralco’s distribution system thereby reducing system losses,” the ERC said.

In approving the supply contract, ERC noted that agreement between the two power firms conforms to the National Government’s program to promote the use of renewable energy to address various environmental concerns such as garbage disposals, greenhouse gas emissions and global warming.

 “The commission is mandated to protect the interest of the consumers insofar as they are affected by the rates, particularly in the light of the pervading financial crisis,” it said.

Montalban Methane is a joint venture between Tranzen Group Inc. owned by businessman Salvador Zamora II (60 percent) and Carbon Assets Fund of Cayman Island, a majority owned company of United Kingdom-based Carbon Capital Markets (40 percent).