Emerging retail electricity supplier (RES) Mabuhay Energy Corporation (MECO) has recently signed a new contract with the Philippine branch of a Thailand-based agribusiness conglomerate.
Mabuhay Energy, which signed a contract with Megaworld’s Richmonde Hotels in 2020, inked a retail electricity supply contract with Charoen Pokphand Foods Philippines to provide power to the firm’s two feed mill facilities.
Under the deal, MECO will energize Charoen’s agro-industrial feed mill in Gerona, Tarlac, which produces food for swine, chicken, ducks, and farming purposes. MECO will also supply electricity to the Thai firm’s aqua-industrial feed mill in Samal, Bataan, which makes feeds for fish and shrimp, as well as aquaculture farming and hatchery.
Charoen Pokphand Foods Philippines is a subsidiary of the Charoen Pokphand Group, Thailand’s largest private company and one of the world’s largest conglomerates.
The contracts began last February are expected to last for two years until 2023.
Charoen, which consumes approximately two million kilowatt hours monthly, conducted a bidding in the fourth quarter of 2020. Most RESs that participated were subsidiaries of the country’s major power players, but MECO was still chosen.
“Aside from the competitive price, we decided based on the merits of the contract and how MECO was able to provide flexibility in the off-take which is what we really need at this time,” Charoen Pokphand Foods Philippines said in a statement.
“This partnership with Charoen Pokphand is a testament to the level of trust and confidence of large conglomerates bestowed upon MECO and its ability to foster innovation in the power industry.” said Mabuhay Energy Chairman and CEO Sherwin Hing.