The Manila Electric Company (MERALCO) has begun negotiations with Terra Solar Philippines for the supply of 850 megawatts (MW) of renewable energy (RE) supply after the second round of the competitive selection process (CSP) failed.
MERALCO regulatory management office head Atty. Jose Ronald Valles said that the power giant has begun direct negotiations with the “original proponent” and intends to sign the power supply agreement (PSA) as soon as possible.
Valles added that the PSA will be part of MERALCO’s compliance with the Department of Energy’s Renewable Portfolio Standards (RPS).
Under the RPS, companies are required to source a minimum percentage of their energy portfolio from RE sources.
Terra Solar, a joint venture between Leandro Leviste’s Solar Philippines and Enrique Razon’s Prime Infrastructure Capital Inc., offered an unsolicited proposal of Php6.08 per kilowatt headline rate and levelized cost of electricity to MERALCO during the first round of bidding under the CSP.
The offer, which will deliver 600MW of power supply by February 26, 2026 and 250MW beginning February 26, 2027, will last for 20 years. The supply will be coming from Terra Solar’s proposed power plants in Batangas, Cavite, Nueva Ecija, Tarlac, and Zambales.
SMC Global Power Holdings and SunAsia Energy, Inc both expressed interest to bid, but both did not push through, leading to the CSP’s failure.
MERALCO’s third-party bids and awards committee said that the distribution company can enter into direct negotiation considering that there are no outstanding disputes during the first and second rounds.
Solar Philippines president and CEO Leandro Leviste confirmed the negotiation. The company entered an asset-for-share swap with subsidiary Solar Philippines Nueva Ecija Corporation