Meralco PowerGen Corp., a subsidiary of Manila Electric Co., reiterated its positive forecast for the approval of the power supply agreement (PSA) submitted to the Energy Regulatory Commission (ERC) for its 1,200 MW Atimonan One Energy (A1E) coal power plant.
A1E and Meralco have a pending PSA filed two years ago with the ERC. The coal-fired plant is estimated to cost around P 150 billion.
In its fourth appeal submitted to resolve the PSA pending with the ERC, AIE cited the consequences of a derailed PSA approval in terms of the project’s total cost, timetable, and eventual power prices.
“We do not see any reason for further delays, especially with the expected increase in demand and load growth that comes with the government’s massive infrastructure projects under the Build Build Build Program,” Meralco PowerGen President and Chief Executive Officer Rogelio Singson was quoted as saying in a report by Manila Standard.
He also cited the Department of Energy’s (DOE) recent awarding of Energy Project of National Significance (EPNS) certificate to A1E’s project, which is a major contributing factor that would positively affect the project development.
Under Executive Order No. 30, which was signed by President Rodrigo Duterte, projects declared as EPNS should be acted upon within a 30-day period.
EO 30 aims to prioritize projects identified as EPNS to avoid unnecessary delays in the implementation of the government’s Philippine Energy Plan.
The construction of A1E’s power plant will provide the country with a highly efficient base load supply. The first 600 MW is scheduled to be completed by 2023. while the second unit is projected to be completed by the first quarter of 2024.
“The A1E PSA was legally filed in accordance with the rules and regulations of ERC, it was subjected to very stringent evaluation process and scrutiny by many consumer groups, and underwent many public hearings in compliance with legal and regulatory requirements. This was done with the objective of ensuring adequate and reliable power supply at least cost to Meralco’s customers, thus, we find strong merit in positively acting on this agreement,” Singson said.