Meralco, Terra Solar seek approval of power supply deal

Manila Electric Co. (Meralco) and Terra Solar Philippines Inc. (TSPI) are seeking approval from the Energy Regulatory Commission for their 20-year power supply agreement (PSA).

TSPI submitted an unsolicited proposal and won the competitive selection process to supply 850 megawatts of mid-merit capacity from renewable energy to Meralco.

It will source its power to be supplied to Meralco from its 2,500 MW solar power plants and 4,000 MWh battery energy storage systems to be constructed in Cavite, Bulacan, Nueva Ecija, and/or Zambales.

TSPI will deliver 600 MW by February 26, 2026 and 250 MW by February 26, 2027.

The petitioners said TSPI’s annual delivered rate of P5.80 per kilowatthour (VAT and line rental inclusive) is lower by about P3.9840 per kWh than the effective cost of P 9.7840 per kWh (VAT and line rental inclusive) if the equivalent capacity under the Meralco-TSPI PSA is to be sourced from the Wholesale Electricity Spot Market.

“In fact, by sourcing the capacity through the Meralco-TSPI PSA, Meralco’s average blended generation rate will be reduced by about PhP 0.3540 per kWh resulting in savings to consumers of about P14.8 billion,” the application said.

After hearing on the merit, Meralco-TSPI asked the ERC to render a decision approving the PSA and the terms and conditions thereunder, including the price.

https://bilyonaryo.com/2023/02/18/meralco-terra-solar-seek-approval-of-power-supply-deal/power/#gsc.tab=0