SOLAR PHILIPPINES has offered to supply the Manila Electric Co. (Meralco) 50 megawatts (MW) of solar power for P2.34 per kilowatt-hour (kWh), the lowest rate so far for solar energy.
Solar Philippines President Leandro Leviste said Meralco accepted the P2.34-per-kwh offer for 50-MW net delivered capacity. Its offer is lower than Pilipinas Newton Energy Corp.’s P2.98-per-kWh offer.
“We challenged the offer of Pilipinas Newton at P2.98 per kwh in December 2017. We submitted our offer many months ago and it took Meralco quite a long time to evaluate it. But now we are hopeful the proceedings will end soon since they accepted it as the lowest price in the CSP [Competitive Selection Process],” Leviste said.
Solar Philippines is the lone challenger and is awaiting official word on whether the original proponent will exercise its right to match.
“The company’s offer is now subject to the original proponent’s exercise or not exercise the right to match,” Leviste said.
The final say is with Meralco.
“It depends on Meralco when they will end the period during which the original proponent can decide,” Leviste said.
If and when Solar Philippines bags the 20-year power supply contract, Leviste said solar power will be sourced from its 150-MW solar-power facility in Tarlac.
“The company we used to bid is the same company for the P2.99-per-kWh offer, Solar Philippines Tarlac Corp. This will be an expansion of our Tarlac power plant and we will be significantly expanding the capacity of our Tarlac power plant from its current 150-MW rated capacity to a total of 450 MW,” he said.
In December 2017 Meralco published an invitation to challenge the price of P2.9887 per kWh with a 2-percent annual escalation for 20 years for 50 MW of solar energy, starting on December 31, 2018, or eight months from approval by the Energy Regulatory Commission (ERC).
“There is an important escalation there which will be disclosed at the end of the CSP. The first year is P2.34 per kWh and there is an escalation and the levelized cost is still significantly below the original offer of P2.98 per kWh,” Leviste said.
Under a CSP regime, another interested bidder could challenge the original offer. After the CSP has been successfully concluded, both parties must seek approval from the ERC before their power-supply agreement is implemented.
