Meralco customers to benefit from Solar Philippines's Tarlac farm

Customers of the Manila Electric Co. (Meralco) would begin to benefit from lower electricity rates due to a power supply deal with Solar Philippines's Tarlac farm.

In a statement on Saturday, Solar Philippines said its Tarlac farm would begin supplying Meralco with power this month.

"The start of supply from the solar farm will save Meralco from purchasing from the Wholesale Electricity Spot Market (WESM) when prices peak, and prevent rotating blackouts as have occurred over the past months," the company explained.

Solar power supply is highest at midday, when power demand also peaks, the renewable energy company pointed out.

The Solar Philippines said that its P2.9999 per kilowatt hour (kWh), with two percent annual increment rate with Meralco, was the "lowest ever" rate for any power supply agreement in the country.

"If this were to replace Meralco’s average generation rate of June 2019 of P6.0186/kWh inclusive of VAT, this may result in savings of P3.0187/kWh to Meralco consumers, or P603.74 for those with a 200 kWh monthly consumption," Solar Philippine said.

"This record-low rate was the result of Solar Philippines Tarlac Corp. submitting the lowest bid in a Competitive Selection Process (CSP), as required by the Department of Energy."

Meralco had announced plans for another CSP, which is expected to further lower costs for consumers.

With a peak capacity of 150 MW, the Tarlac solar farm was the largest solar farm in the country and the first to dispatch electricity to Meralco under a Power Supply Agreement, Solar Philippines said.

To achieve its low costs, the project used panels manufactured at the Solar Philippines Factory, the first Filipino solar factory, which was developed, constructed, owned and operated by Solar Philippines.

“We are proud to be the lowest-cost producer of electricity in the Philippines, and happy that Meralco’s approximately 30 million consumers will now benefit from these low costs. We thank Meralco for accelerating the adoption of renewable energy, and becoming the No. 1 consumer of solar in the Philippines," Solar Philippines president Leandro Leviste said. — John Ted Cordero/DVM, GMA News