Solar Philippines offers P2.99/kwh rate to Meralco

Solar Philippines offers P2.99/kwh rate to Meralco

Solar Philippines has toughened up competition in the solar technology space
as it dangled a price match of P2.99 per kilowatt-hour (kwh) to solar
capacity procurement auctioned by power utility giant Manila Electric
Company.

According to Solar Philippines President Leandro Leviste, they are now
complying with the documentary requirements as set forth by the off-taker
(capacity-buyer) utility.

He indicated that based on information given to them, Citicore Power, Inc.
which had tendered the initial bid price of P3.50 per kWh had no longer
exercised its "right to match" - in a deadline that was set August 14.

Leviste said the solar capacity in their Meralco offer will be coming from
their new project development in Batangas.

It will be of 150-megawatt capacity venture, "and half of that will go to
Meralco," he said, upon finally signing up for a contract based on their
price offer.

More specifically, the capacity that shall be delivered to Meralco based on
the specified auction would be 85 megawatts, part of the utility firm's
strategic move to build up its supply portfolio of renewable energy.

Leviste hinted that a supply contract signing is in the offing, with just
some processes still being sorted out and set for completion by relevant
parties.

Meralco Vice President Lawrence Fernandez, when separately interviewed by
the media, has noted that he cannot divulge details yet on the "price match
tender"; although he affirmed that they actually got an offer of less than
P3.00 per kWh.

He said the 'matching offer" is still under evaluation by the bids and
awards committee of the company, but an announcement will be due soon.

Solar Philippines has been intensifying "cost competition" in the solar
sector, even for supply contracts set to be underwritten by distribution
utilities and electric cooperatives.

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Link to Original Article:
http://business.mb.com.ph/2017/09/20/solar-philippines-offers-p2-99kwh-rate-
to-meralco/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com




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