Meralco draws power from Montalban methane plant

Manila Electric Co. (Meralco) has begun to draw power from an eight-megawatt (mW) methane facility, indicating its commitment to use clean energy. Although it was only able to draw just one mW from the 8.19-mW Montalban Methane Power Corp., the electric company intends to get the entire contracted power soon, Meralco president Jose de Jesus said. A technical problem precluded Meralco from getting two mWs from the plant, as indicated in an agreement, he said. In the next five years, Montalban Methane will increase the plant’s capacity to 15 mWs. Moreover, Meralco will cut transmission costs by drawing power from the Montalban facility which falls within the company’s franchise area. “Transmission charges and losses will be avoided as the plant itself is imbedded by nature. The said plant will provide voltage support to Meralco's distribution system thereby reducing system losses," the Energy Regulatory Commission (ERC) said. Early this year, Meralco agreed to buy electricity from Montalban Methane’s facility in Rodriquez as part of its efforts to use and promote renewable energy. Approved by the ERC, the agreement supports the government’s program to promote renewable energy to address environmental concerns. Montalban Methane is a joint venture between Tranzen Group Inc., which is controlled by Salvador Zamora II which holds a 60 percent stake in the company. Carbon Assets Fund of Cayman Islands, a majority owned company of United Kingdom-based Carbon Capital Markets, controls a 40 percent stake in Montalban Methane. Currently, Meralco sources its power requirements from the state-led National Power Corp., the wholesale electricity spot market, and its own independent power producers such as Quezon Power Philippines Ltd. and First Gas Power Corp. Montalban Methane plans to develop similar projects in Angeles, Olongapo, and Davao cities and San Mateo, Rizal. The Rodriguez municipality in Rizal contracted Montalban Methane to build and operate the landfill gas-to-power facility in the Montalban landfill which hosts around 1,500 tons of garbage daily. - GMANews.TV