Semirara unit, Meralco forge two-year power supply deal

MANILA, Philippines - Southwest Luzon Power Generation Corp., a unit of Semirara Mining and Power Corp., has forged a two-year power supply deal with Manila Electric Co. (Meralco), the country’s biggest power distributor.

In a disclosure to the Philippine Stock Exchange, Semirara said its subsidiary will supply Meralco 120 megawatts (MW) of power starting March 26, 2016.

“We disclose that the company’s wholly-owned subsidiary, Southwest Luzon Power Generation Corp. and Manila Electric Co. local retail electricity supplier (RES) segment have signed a power supply agreement (PSA) with a term until Dec. 25, 2018,” the company said.

Meralco’s local RES provides contestable customers the power of choice in their electricity provider under the retail competition and open access (RCOA) system.

The power supply deal between Southwest Luzon and Meralco may be “extended up to four years upon mutual agreement of the parties,” Semirara added.

Semirara, through Southwest Luzon, currently has a 600-MW coal-fired power plant in Calaca, Batangas.

Currently, its subsidiary is building the 300-MW first phase expansion of the South Luzon coal-fired power plant in Calaca, Batangas.

Data from the Department of Energy showed the expansion, composed of two 150-MW units, is targeted for commercial operations this year.

The capacity of the Batangas coal-fired power plant will further be expanded by another 300 MW to bring the total capacity to 1,200 MW.