Meralco is open to forging a 24/7 supply deal with Solar Philippines

Manila Electric Company (Meralco), the country’s largest power retailer, said it is open to explore a 24/7 power supply contract with Solar Philippines.

The company has been mandated to buy less expensive electricity in the market, Meralco chairman Manuel Pangilinan told reporters in an interview over the weekend.

“Part of our mandate is to source the least cost and we take that very seriously. On the other hand, we must also diversify the sources because if we are dependent on just a single source, then that’s not good,” Pangilinan noted.

Solar Philippines has offered Meralco a supply deal at P2.99 per kilowatt-hour (/kWh), which is supposed to generate up to P75 billion in yearly savings.

This compares with the average rate of P5.44/kWh proposed by First Gas Power Corp. First Gas sells power to Meralco from a 500-megawatt (MW) natural gas plant.

Meralco has declared a recent bidding to top the First Gas offer as failure, noting that the bidders did not qualify to challenge First Gas’ parent First Gen Corp.

Participants in the selection process were required to offer the same fuel as the original supplier—in this case, natural gas.

“We’re trying to diversify fuel sources, just in case. Because, for example, if a typhoon hits a particular area, wala kang solar power. Kaya kailangan you have other sources. So it’s good for Meralco to diversify,” Pangilinan said.

Meralco’s franchise area in Luzon is approximately 9,685 square kilometers, straddling 36 cities and 75 municipalities including Metro Manila. —VDS, GMA News