Meralco, PanAsia Energy sign power supply deal ahead of summer 2015

The Manila Electric Company (Meralco) has inked another electricity supply electricity to mitigate the power constraints expected in the summer of 2015.

 

The power distributor said it signed an interim power supply agreement (IPSA) with PanAsia Energy Inc. over the output of the diesel-fired power plant in Limay, Bataan.

 

Limay will sell up to 270 megawatts (MW) of electricity from January 26 to April 25, 2015 and up to 180 MW from April 26 to July 25, 2015.

 

"The IPSA was entered into to help mitigate the impact of the forecasted supply constraint during the summer months of 2015, as part of Meralco’s continuing efforts to source additional capacities through interim bilateral contracts with power producers with available contracted capacity," Meralco said.

 

The agreement, subject to Energy Regulatory Commission approval, will expire on July 25, 2015. 

 

Last month, Meralco president Oscar Reyes said the company was scrambling to secure short-term power supply agreements to ensure service continuity during the critical summer months of 2015.

 

The power distributor signed a 50-MW power supply deal with Bacman Geothermal Inc., a unit of Energy Development Corp. (EDC).

 

It also signed an interim power supply agreement with Aboitiz Power Renewables Inc. for 50 MW from the Makban geothermal plant in Laguna.

 

Apart from the latest contract, Meralco is also extending its contract with Global Business Power Corp., 1590 Energy Corp.'s Bauang power plant and PanAsia Energy Inc.'s Limay power plant, Reyes said.

 

The Department of Energy expects a reserve shortfall in the Luzon grid – primarily stemming from a month-long maintenance shutdown of Malampaya gas line and scheduled outages of other power plants, Bayan Muna representative Neri Colmenares said earlier. – Danessa O. Rivera/VS, GMA News