Solar Philippines offers P2.34 per kwh rate to Meralco for 50 MW of solar supply

MANILA, Philippines — Solar Philippines has offered Manila Electric Co. (Meralco) a rate of P2.34 per kilowatt-hour (kwh) for 50 megawatts (MW) of solar supply – considered to be the lowest rate in Southeast Asia.

Leandro Leviste, president of Solar Philippines, said Meralco accepted the P2.34 per kwh offer for 50 MW net delivered capacity.

“We submitted our offer many months ago and it took Meralco quite a long time to evaluate it, but we are  now hopeful that the proceedings will end soon since they accepted it as the lowest price in the CSP (Competitive Selection Process),” the official said.

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 earlier said the price offered would be the lowest rate for solar energy in the history of Southeast Asia, and would be competitive with the lowest rates worldwide.

Leviste said the P2.34 per kwh offer is the initial rate with an escalation rate which will be announced after the CSP process.

The company will source the 50-MW supply from the expansion of Solar Philippines Tarlac Corp., which has yet to be finalized.

“This will be an expansion of our Tarlac power plant and we will be significantly expanding the capacity of our Tarlac power plant from its current 150 MW rated capacity,” Leviste said.

“We are still finalizing based on the technical study of NGCP (National Grid Corp. of the Philippines) for the maximum allowable capacity of our Tarlac solar power plant eventually, but our plan is to do it within the next few years and expand it to a total of 450 MW from the current 150 MW,” he said.

Solar Philippines Tarlac is the same company which secured an 85-MW contract also from Meralco.

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

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

The agreement calls for a 50-MW supply from Solar Philippines Tanauan – 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 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 for an 85-MW supply at a rate of P2.9999 per kwh. Both are still pending with the ERC.