Meralco negotiates 300-MW power deals

by Alena Mae S. Flores – August 28, 2016 at 11:52 pm

from Manila Standard Today

Retailer Manila Electric Co. is negotiating with power producers for a 300-megawatt supply agreement to cover mid-merit requirements.

“I think for our baseload, we are sort of already contracted. We are in discussions for our mid-merit for gas,” Meralco president Oscar Reyes told reporters.

Reyes said aside from gas, Meralco could tap other sources of power such as geothermal for the mid-merit requirements, which fill the gap between peaking and baseload power plants.

“It can also be some other mid-merit plants [aside from gas], because you can have a mid-merit geothermal,” Reyes said.

Reyes said Meralco aimed to finalize the power supply contract by the first half of 2017.

Meralco signed on April 3 about 551 megawatts of power supply agreements with seven power generators.  Only one agreement was approved to date.

The Energy Regulatory Commission provisionally approved Meralco’s supply agreement with Panay Energy Development Corp., a subsidiary of Global Business Power Corp.

Meralco will source 70 megawatts from Panay Energy which owns and operates a 150-MW coal-fired power generating facility in Barangay Ingore, La Paz, Iloilo.  The plant was scheduled to become operational by Aug. 26.

Panay Energy will initially supply 28 MW starting Aug. 26 and later increase it to 70 MW starting Feb. 26, 2017.

Other pending supply agreements were 225 MW with Redondo Peninsula Energy Inc., which is initially building a 300-MW coal plant in Subic, Zambales.

RP Energy is majority controlled by Meralco PowerGen Corp., the power arm of Meralco.

The company also has a pending supply agreement with St. Raphael Power Generation Corp. for the purchase of up to 400 MW of electrical output with the ERC.

St. Rafael, the joint venture between Semirara Mining and Power Corp., Meralco PowerGen and Marubeni Corp., intends to construct, own, operate, manage and maintain a 700-MW coal-fired power generating facility in Calaca, Batangas.