ERC okays ₱5.39/kwh rate for Tanauan solar plant

Published March 4, 2020, 12:00 AM

by manilabulletin_admin

By MYRNA M. VELASCO

The Energy Regulatory Commission (ERC) has extended final approval to the ₱5.39 per kilowatt hour (kwh) electricity rate that project developer-firm Solar Philippines has tendered in its 20-year power supply agreement (PSA) with Manila Electric Company.

The regulatory body’s final nod on the pass-on rate of the solar facility is a follow-through to the provisional approval it rendered last year on the same application. The PSA between Meralco and Solar Philippines was signed in 2016.

In its decision, the ERC stipulated that the approved rate of ₱5.39 per kWh is subject to 2.0 percent annual escalation as prescribed in the power supply deal.

Under the PSA, it was prescribed that Solar Philippines will supply 25 megawatts of the capacity off-take to Meralco from its first site in Tanuan; and then the other 25MW from its second site in Naic, Cavite.

There is also an option provision under the contract that seller-firm Solar Philippines may source capacity from other plant-locations within the stretch of their 20-year contract.

The 50MW offtake from the Solar Philippines Tanauan Corporation had been among the first contracts offered by the Leviste-founded firm to the country’s biggest power utility.

“The PSA was executed in support of renewable energy and the rate approved by the ERC is significantly lower than the prevailing feed-in-tariff rates,” Meralco said. The second wave FIT rate for solar had been pegged at ₱8.69 per kwh; while the first one was at ₱9.68 per kWh.

In the past two to three years, Solar Philippines President Leandro Leviste also joined the utility firm’s biddings and had been dangling cheaper-cost solar tenders at the rates of ₱2.34 to ₱2.99 per kwh.

 
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