MANILA, Philippines — Power distributor giant Manila Electric Co. (Meralco) is seeking price challengers for a new long term solar power supply offer of 50 megawatts (MW) in compliance with the competitive selection process (CSP) policy.
Meralco published an invitation for price challenge after Pilipinas Newton Energy Corp. submitted an offer of 50 MW at a P2.9887 per kilowatt-hour (kwh) rate for a period of 20 years.
The supply will come from its 50-MW solar power plant in San Manuel, Pangasinan which is currently under development.
The contract should start by Dec. 31, 2018 or eight months after approval is secured from the Energy Regulatory Commission (ERC).
Meralco has given price challengers until 4 p.m. of Jan. 2, 2018 to submit their financial proposals and a non-refundable fee of P100,000.
After closing three solar power supply deals, Meralco is still looking to add up to 100 MW of additional solar capacity to meet the renewable energy requirements of its franchise area.
So far, the company has received at least 20 offers to supply solar energy to the power distributor in the past 18 months, Meralco president Oscar Reyes said earlier.
Meralco is challenging solar power developers to offer more competitive rates to mitigate any increase in its blended generation rate.
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 P5.39 per kilowatt-hour (kwh) rate 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 said supply will be sourced from its 150-MW solar farm in Concepcion, Tarlac.
Meralco gets its supply from contracts with a capacity worth about 2,000 MW, composed of 1,500 MW from First Gas plants of the Lopez Group and around 400 MW from the Quezon coal power plant.