Philippines: Meralco solicits bids for 85-MW solar deal

Philippines: Meralco solicits bids for 85-MW solar deal

Manila Electric Co., the country's largest power retailer, issued an
invitation to other renewable energy developers to challenge the price
offered by Citicore Power Inc. for the supply of up to 85 megawatts from
three solar power plants at P3.50 per kilowatt-hour.

Meralco said in a published invitation for a price challenge that Citicore
offered to supply 75 MW to 85 MW of capacity from its three solar plants,
including Next Generation Power Technology Corp. in Mariveles, Bataan, First
Toledo Solar Energy Corp.in Toledo, Cebu and Silay Solar Power Inc. in
Silay, Negros Occidental.

Meralco is required to publish an invitation for a price challenge under the
competitive selection process rules of the Energy Department and the Energy
Regulatory Commission.

The distributor said the price challenger's solar plant should be able to
deliver power 20 years from commencement of the contract period.

Meralco said the price challenger's power plant must be covered by a solar
energy service contract with the Energy Department and should have a valid
certificate of registration as a renewable energy developer.

The price challenger must own and control the power plant.

Meralco said the price challenger must also show satisfactory evidence that
it had the financial capacity to fulfill its obligations to the company.
Qualified price challengers were given until Aug. 14 to submit their
financial proposals to Meralco.

Citicore's P3.50 per kWh price offer is lower compared to the offers of
Solar Philippines Tanauan Corp. and PowerSource First Bulacan Solar Inc.

Meralco has a pending application with the ERC for approval of its power
supply agreement for the supply of 50 MW capacity from Solar Philippines at
P5.49 per kWh.

Meralco also has a separate pending application for a 50-MW supply agreement
with PowerSource First Bulacan Solar Inc. at P4.69 per kWh.

Manolo Candelaria, Citicore Power executive vice president for commercial
and development operations, said two other companies bought bid documents
intending to challenge the company's price offer to Meralco.

Candelaria said the P3.50 per kWh rate was "based on our assessment of
current government policy directions and industry competition."

Citicore Power is a renewable energy company committed to reducing
greenhouse gas emissions through solar, wind, hydro, and biomass projects
across the Philippines and Asia.

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Link to Original Article:
http://thestandard.com.ph/business/power-technology/243220/meralco-solicits-
bids-for-85-mw-solar-deal.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com