Leviste, Razon joint venture offer MERALCO 850MW in RE supply

Prime Infra-SolarPh-MERALCO

Terra Solar, a renewable energy (RE) joint venture of Leandro Leviste’s Solar Philippines and Enrique Razon’s Prime Infrastructure Capital, Inc., has offered an unsolicited proposal to supply the Manila Electric Company (MERALCO) with 850 megawatts (MW) of mid-merit power for 20 years.

Based on a Manila Standard report, Terra Solar offered a Php6.08 per kilowatt-hour headline rate and Levelized Cost of Electricity. 

Mid-merit power fills the gap between baseload capacity and peak generation capacity. 

Terra Solar has proposed its solar power plants with battery energy storage systems in Batangas, Cavite, Nueva Ecija, Tarlac, and Zambales. The Leviste-Razon venture has committed 600MW of power supply by February 26, 2026, while the remaining 250MW would be delivered beginning February 26, 2027. 

MERALCO, then, called for bids to challenge Terra Solar’s proposal through a competitive selection process (CSP). The power giant has given interested bidders until February 2 to submit their expressions of interest. The pre-bid conference is scheduled for February 4, and the bid submission will be up to March 7. 

The firm told bidders their capacity should be 100% available for six to 13 hours a day, which would cover the utility’s peak hours for at least 84 hours a week. 

This CSP is in compliance with the Department of Energy’s policy on the Renewable Portfolio Standards (RPS) and is part of MERALCO’s efforts to source up to 1,500MW of its power requirements from RE sources. 

Prime Infrastructure recently acquired a 50% stake in Solar Philippines Tanauan Corporation, which is currently building solar farms in Batangas and Cavite.

MERALCO is also holding a CSP for the supply of 170MW of peaking power for the summer season. Three power generating firms have expressed their interest to join the bidding. The winning bidder would be known on February 2.