Meralco eyes additional solar power supply

MANILA, Philippines — After closing three solar power supply deals, Manila Electric Co. (Meralco) is looking to add 50 to 100 megawatts (MW) of solar capacity to meet the renewable energy requirements of its franchise area.

Meralco president Oscar Reyes said the company has received at least 10 offers to supply solar energy to the power distributor.

“We’ll see if it can still accommodate 50 to 100 MW more,” he said. “We’re in discussions with several parties. Maybe (we can close a deal) in the next three to six months.”

So far, Meralco has forged three solar power supply agreements (PSAs) in the past year. The first two contracts involve a 50-MW supply from Solar Philippines Tanauan Corp. at a rate of P5.39 per kilowatt-hour (kwh) and another 50-MW supply from PowerSource First Bulacan Solar Inc. at P4.69 per kwh.

Solar Philippines will supply 25 MW each from solar farms from its solar farms in Tanauan, Batangas and Naic, Cavite once approved by regulators.

Meanwhile, PowerSource is currently developing a 50-MW solar farm in the municipality of San Miguel, Bulacan which is scheduled for completion in August 2018.

The other PSA was contracted with Solar Philippines Tarlac Corp. (SPTC) earlier this month, covering an 85-MW supply at a rate of P2.9999 per kwh starting 2018.

The supply will be sourced from its 150-MW solar farm in Concepcion, Tarlac.

The three solar PSAs were secured after undergoing competitive selection process.

However, Reyes said they want to see the first three solar PSAs approved by the Energy Regulatory Commission first before moving on to another batch of solar PSAs.

“We’d like to see action on the first three solar (PSAs) to enable us to better have a decision on the next batches,” he said. “On the first two, hearings have been completed. On the third one, that’s been filed.”

Apart from the approvals of the earlier PSAs, Meralco will also have to see whether its system can still accommodate intermittent supply from solar plants.

 “We’re doing it in a way that we also want to ensure that penetration of solar in the system is something the distribution grid can absorb without adversely affecting the quality of power performance because of the intermittency of solar. We have to ensure it does not affect the grid or the circuits of the grid,” Reyes said.