By Danessa O. Rivera – January 10, 2016 – 12:00am
from The Philippine Star
MANILA, Philippines – Power distributor Manila Electric Co. (Meralco) is taking control of a joint venture with Repower Energy Development Corp. (REDC) in renewable energy (RE) development.
In a disclosure to the Philippine Stock Exchange, Meralco said the agreement with REDC would entail the establishment of a joint venture company that would pursue and undertake the development of various hydroelectric power projects.
Meralco will have an “equity stake equivalent to 50 percent minus one share of the authorized capital stock of the proposed JVC”.
The partnership marks Meralco’s foray into mini-hydropower development.
The partners will hold a series of ground breaking ceremonies for mini-hydropower plants in select regions starting in the first half of the year.
REDC has over 100 megawatts (MW) of mini-hydropower projects clustered in Quezon, Camarines Sur, Bukidnon, and other provinces under development with investments worth $400 million.
The joint venture will have its first set of hydropower plants operational by 2019. These facilities will avail of the feed-in-
tariff (FIT) scheme mandated by the Renewable Energy Act of 2008.
The FIT system entitles power developers to receive a set of incentives for a period of time to build RE projects.
Developers of run-of-river hydro projects, on the other hand, are entitled to a FIT allowance rate of P5.90 per kilowatt-hour.