MGen seeks ERC okay for Quezon plant

MANILA, Philippines - Meralco Power Gen (MGen), the power generation arm of power distributor Manila Electric Co. (Meralco), is awaiting the green light from the Energy Regulatory Commission (ERC) for its 455-megawatt coal-fired power plant in Quezon.

Meralco president Oscar Reyes said hearings conducted by the ERC on the rationale of the project have already been concluded. “We are just waiting for the final ERC approval,” he said.

According to Reyes, MGen would start raising the P40 billion after the final approval of the erc.

“We will do that right after the ERC approval,” Reyes said, hoping that the approval would be “forthcoming within the next thirty days.”

Meralco is hoping to have the project ready by the summer of 2018. He said the Luzon grid would have a more comfortable level of supply when the plant starts to operate. 

The San Buenaventura Power Ltd. Co. (SBPL) is a joint venture firm formed by MGen and New Growth BV., a subsidiary of Electricity Generating Public Company Limited (EGCO) of Thailand.

EGCO is partly owned by Electricity Generating Authority of Thailand (EGAT).

Under the arrangement, MGen owns 51 percent of the power facility, including rights to assign up to two percent to an approved assignee, while New Growth B.V. holds the remaining 49 percent, according to data from MGen.

San Buenaventura has already signed a power supply agreement with Meralco for the sale and purchase of the plant’s entire output for a 20-year period upon commencement of commercial operations and subject to the approval of the ERC.

This developed as Reyes expressed hopes that the situation of the Luzon grid this summer would continue with adequate reserves.

On Sunday, the Luzon grid had a capacity of 9,410 megawatts as against a system demand of 7,500 MW or reserves of 1,647 MW, according to the power situation outlook of the National Grid Corp. of the Philippines (NGCP).