Meralco taps additional 150 MW wind power

MANILA, Philippines — Manila Electric Co. (Meralco) is looking to add as much as 150 megawatts (MW) of wind power in its supply portfolio to expand the renewable energy requirements of its franchise area.

The power distributor has received a 20-year offer from Island Wind Energy Corp. to supply 150 MW from its two wind projects currently under development, Meralco president and CEO Oscar Reyes said.

He said the proposal would be phased into an 80-MW supply from the first plant and 70 MW from the second plant and would undergo a competitive selection process (CSP).

The first wind farm is scheduled to start commercial operations on June 30, 2020 or 21 months after the Energy Regulatory Commission (ERC) issues its final approval.

Meanwhile, the second wind plant will start running 12 months after the first phase.

Under the proposal, Island Wind offered a rate of P3.50 per kilowatt-hour (kwh), subject to an annual escalation of two percent.

Meralco head of utility economics Lawrence Fernandez said the rate offered is much lower than the wind feed-in tariff (FIT) rates of P8.53 per kwh and P7.40 per kwh.

Meralco has commenced the CSP for the proposed offer, giving price challengers until March 5, 2018 to submit their respective counter-offers.

Fernandez said Meralco is accepting supply from any kind of technology as long as it provides the necessary requirements of its franchise area.

“We’re open to all technologies as long as it’s competitive and it will lead to a more efficient and reliable system,” he said.

Meralco is currently undertaking another CSP for a proposed 50 MW of solar capacity from Pilipinas Newton Energy Corp. Under the offer, the rate agreed upon is P2.98 per kwh.

Once the CSP is completed, the 50-MW supply contract would be Meralco’s fourth solar power supply agreement (PSA).

So far, Meralco has submitted three solar PSAs with the Energy Regulatory Commission (ERC).