The Energy Regulatory Commission (ERC) has approved the power deal between Manila Electric Co. (Meralco) and Solar Philippine Tanauan Corp. (SPTANC), with an approved rate of P5.39 per kilowatt hour (kWh).

The approved rate is subjected to 2 percent annual increase as provided in the Power Supply Agreement (PSA), according to a report.

Meralco said that the ERC’s decision on the PSA application was promulgated on February 28, which is more than three years since the PSA was done.

The power distribution firm also added that this PSA was done in support of renewable energy, adding that the approved rate of ERC is significantly lower compared to the existing solar feed-in-tariff rates, which is P8.69 per kWh.

SPTANC will supply 25 MW from its solar farms in Tanauan, Batangas, and another 25 MW from Naic, Cavite.

On the other hand, ERC has scheduled on March 26 the hearing on SPTANC’s application to develop and own a dedicated transmission facility to connect its Tanuan solar plant to Meralco.

“In order to ensure unhampered supply of electricity, particularly in Luzon, SPTANC has undertaken to construct and own the transmission lines which will connect its Tanauan Power Plant by a bus-in scheme to Meralco’s CIP2 115kV line,” SPTANC said in its application filed with the ERC.

The transmission line project will be executed at a constructed 115kV switching location located in Calamba, Laguna. “Finding the said application to be sufficient in form and in substance with the required fees having been paid, the same is hereby set for determination of compliance with the jurisdictional requirements, expository presentation, pre-trial conference and presentation of evidence on March 26, 2020 at 2 p.m., at the ERC hearing room,” the ERC order stated.

Meralco has additional peaking capacity through bilateral power supply contracts to ensure continuous and reliable electricity for its customers.