Power Distributor Manila Electric Co. (Meralco) is eyeing the approval of its solar supply contracts of 100 megawatts following price challenges directed under the competitive selection (CSP) policy.
Meralco recently concluded the price challenge for its two solar power supply contracts, company SVP and customer retail services and corporate communications head Alfredo Panlilio said.
Earlier, Meralco has signed separate contracts worth 50 MW with Solar Philippines Tanauan Corp. and Power Source First Bulacan Solar Inc. to diversify its power requirements.
The two companies have offered a price of P5.39 per kilowatt-hour (kWh) for a 20 year period, lower than the feed – in – tariff of P8.69 per kWh, as soon as the projects begin operations.
“7 Balboa made an offer of P4.69 per kWh from P5.39 per kWh. But Power Source decided to match it,” Soleq, the solar power arm of Equis Funds Group Pte. Ltd. said. “Now it’s up for ERC (Energy Regulatory Commission) approval because we went through the CSP process for both.”
Both contracts went through the price challenge, where only the offer made by Power Source received a counter – offer from 7 Balboa of Soleq.
Under the CSP policy, distribution companies and electric cooperatives are required to undergo price bidding before polishing power supply agreements with generation companies.
If cleared by the energy commission, the two contracts will be Meralco’s first renewable energy power supply contracts in its portfolio.
Solar Philippines is set to provide 25 MW from solar farms in Tanauan, Batangas, and Naic, Cavite that is expected to be finished by February and April 2017, respectively.
Power Source is also developing a 50 MW solar farm in San Miguel, Bulacan scheduled for an August 2018.