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Manila Bulletin devider Business devider ERC greenlights power supply deals between San Miguel's Sual plant, Leyte ECs

ERC greenlights power supply deals between San Miguel's Sual plant, Leyte ECs

Published Mar 16, 2025 10:09 pm

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The Energy Regulatory Commission (ERC) has approved power supply agreements (PSAs) between San Miguel Global Power Holdings Corp.’s (SMGP) newly acquired coal power plant and two electric cooperatives (ECs).

In a notice posted by the ERC, Southern Leyte Electric Cooperative (SOLECO) and Leyte III Electric Cooperative Inc. (LEYECO III) were both granted provisional authority for their PSA with Sual Power Inc. (SPI).

For SOLECO, the capital recovery fee would be around ₱2.2933 to ₱3.5282 per kilowatt-hour (kWh), while the fixed operations and maintenance (O&M) fee is around ₱0.212 to ₱0.3263/kWh.

While LEYECO III also has an approved capital recovery fee of around ₱2.2933 to ₱3.5282/kWh, its fixed O&M fee is set at around ₱0.212 to ₱0.3262/kWh.

SPI, which was acquired by SMGP in October 2024, was previously owned by independent power producer (IPP) TeaM Energy after its contract expiration.

The 1,200 megawatts (MW) coal-fired thermal power plant had recently signed an emergency power supply agreement (EPSA) with Manila Electric Co. (Meralco) as a source of backup electricity for potential power fluctuations.

The EPSA, which is set to bring in supply to Meralco until 2026, disclosed that it is undergoing a pre-filing process with the ERC last February.

Transmission facilities get grid link

The ERC had also authorized solar developer RASLAG Corp. to develop and own its dedicated point-to-point limited transmission facilities that would connect its 36.64 MW RASLAG IV solar power plant to the grid.

This project, which would integrate more renewable energy (RE) into the grid, would be linked via the 69 kilovolt (kV) Mexico-Clark Line 1 of the National Grid Corporation of the Philippines (NGCP).

Additionally, San Isidro Solar Power Corp. (SISPC) has approved the development of dedicated point-to-point transmission facilities to connect its 280 MWp San Isidro solar power plant project to the grid.

This would be linked via direct connection to the existing 230 kV Tabango substation.

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Energy Regulatory Commission (ERC)
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