THE Energy Regulatory Commission (ERC) has approved Manila Electric Co.’s (Meralco) power supply agreements (PSAs) with ACEN’s Gigasol3 Solar Farm and San Miguel Global Power’s San Roque Hydro Power Plant (SRHI).
The deal authorizes Meralco to source its 500 megawatt (MW) mid-merit, renewable energy (RE) supply requirements from the two firms.
Following a regular meeting, the ERC said: “After due deliberation, the commission has resolved to grant provisional authority to applicants Meralco and Gigasol3 to implement their PSA which has an applicable rate that shall be fixed at P5.1908 per kilowatt-hour (kWh).
“In addition, the commission has also resolved to grant with provisional authority to both applicants Meralco and SRHI to implement their PSA. The applicable rate shall be fixed [also] at the price of P5.1908 per kWh, without escalation or adjustment.”
Asked about the status of Santa Cruz Solar Energy Inc.’s PSA with Meralco, ERC chair and CEO Monalisa Dimalanta said the commission had not finished its evaluation.
In July, Meralco announced Gigasol3, SRHI and SCSEI had won the right to supply the 500 MW mid-merit, renewable RE supply requirements.
Meralco said that SRHI submitted the lowest total headline rate of P7.1000 per kWh and would supply 340 MW of Meralco’s needs. Gigasol3, Inc. offered a rate of P8.1819 per kWh for 139 MW while SCSEI’s bid was P8.1998 per kWh for the remaining 21 MW.
All bids were below the P8.2380 per kWh reserve price.
The PSA, which is effective for 10 years, will cover a 350-MW mid-merit requirement starting February 2025, which will increase by 150 MW beginning February 2026.
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