Solar Philippines offers lower electricity rate to supply Meralco

MANILA, Philippines — Solar Philippines has submitted a lower rate to supply Manila Electric Co. (Meralco) with 50 megawatts (MW) of supply.

The bid challenges the price offer made by Pilipinas Newton Energy Corp. at P2.9887 per kilowatt-hour (kwh) with a two percent annual escalation for 50 MW of solar energy for 20 years starting Dec. 31, 2018.

Solar Philippines said it emerged as the only company to submit a price challenge.

It is awaiting official word on whether the original proponent will exercise its right to match.

“We are proud to support Meralco’s mission to deliver the lowest costs to consumers by offering this significantly lower price,” Solar Philippines president Leandro Leviste said.

“This is a testament to the benefits of the Competitive Selection Process (CSP) reforms espoused by Energy Secretary Alfonso Cusi, which mandates power supply to be bid out on fair and competitive terms and prohibits distribution utilities from giving undue advantage to favored suppliers,” he said.

The company has yet to disclose its price,  but noted it would be the lowest rate for solar energy in the history of Southeast Asia, and competitive with the lowest rates worldwide.

“Based on Meralco’s formula for levelized cost, our offer would result in over 50 percent savings on generation rates, or 30 percent savings on all-in rates. We look forward to see this bid progress, to protect consumers from the impact of spiraling inflation at the soonest possible time,” Leviste said.

Once the CSP is completed, the 50-MW supply contract would be Meralco’s fourth solar power supply agreement (PSA).

So far, Meralco has submitted three solar PSAs with the Energy Regulatory Commission (ERC).

The first one involves a 50-MW supply from Solar Philippines Tanauan Corp. (SPTC) at a P5.39 per kwh rate which was granted an interim relief for implementation by the Energy Regulatory Commission (ERC).

The agreement calls for a 50-MW supply from SPTC—25 MW from its solar farm in Tanauan, Batangas and another 25 MW from its plant in Naic, Cavite.

The contracted supply will be offered at a price of P5.39 per kilowatt-hour (kwh) for a period of 20 years, which the ERC said is “not subject to adjustment or escalation.”

The two remaining solar power supply are with PowerSource First Bulacan Solar Inc. for a 50-MW supply at P4.69 per kwh and with Solar Philippines Tarlac Corp. (SPTC) for an 85-MW supply at a rate of P2.9999 per kwh. Both are still pending with the ERC.