ACEN gets ERC nod for La Union power deal

MANILA, Philippines — ACEN Corp. has secured approval from the Energy Regulatory Commission (ERC) to supply La Union Electric Co. Inc. ‘s (Lueco) power requirements for 10 years.

In an order dated Sept. 23, the ERC granted provisional authority for ACEN and Lueco to implement their power supply agreement (PSA), covering 46 to 97 megawatts (MW) of capacity.

Pending the final resolution of the companies’ joint application, the commission said the provisional authority was necessary to shield Lueco from exposure to volatility in the Wholesale Electricity Spot Market (WESM).

The ERC took into account the expiration of the emergency PSA (EPSA) 2 between Lueco and ACEN unit South Luzon Thermal Energy Corp. (SLTEC) on Sept. 25.

Even if Lueco wants to participate in the spot market, the power utility is not a direct WESM member and cannot trade on its own.

“Without an active PSA or EPSA, Lueco is projected to have a supply deficit covering its entire power requirements for the remaining months of 2026 and the said deficit will persist for the years 2027 to 2036,” the ERC said.

ACEN emerged as the winning bidder in Lueco’s competitive selection process after submitting the lowest calculated responsive bid of P5.9684 per kilowatt-hour.

Under the PSA, the utility will require between 46.23 MW and 62.42 MW of power in the first year, starting Sept. 26, 2026. Its requirements are projected to increase each year, reaching 64.39 MW to 97.38 MW by the 10th year.

The power deal will also allow Lueco to comply with its renewable portfolio standards obligations, which require power utilities to source a portion of their electricity supply from eligible renewable energy facilities.

In their joint application, ACEN and Lueco said the 10-year PSA resulting from the auction would provide consumers with “a continuous and reliable supply of electricity at reasonable rates.”

Lueco serves electricity consumers in 21 municipalities and one city in La Union, as well as one town in Pangasinan.

ACEN, meanwhile, administers the 48-MW-peak Islasol Manapla Solar Power Plant and the 32-MWp Islasol La Carlota Solar Project in Negros Occidental.

The company also operates and maintains SLTEC’s 269.96-MW coal-fired thermal power plant in Batangas.