BUSINESS NEWS

Razon-Leviste joint venture seeking Meralco supply deal

 

By Alena Mae S. Flores by Alena Mae S. Flores  January 23, 2022, 7:00 pm MANILA STANDARD


MANILA, Philippines — Terra Solar, the joint venture of Solar Philippines Power Project Holdings Inc. of the Leviste Group and Prime Infrastructure Holdings Inc. of tycoon Enrique Razon Jr., submitted an unsolicited proposal to supply Manila Electric Co. with 850 megawatts (MW) of mid-merit power for a period of 20 years

Meralco started the competitive selection process, or bidding, for its supply requirements in compliance with the Department of Energy’s policy on Renewable Portfolio Standards. The auction is part of Meralco’s efforts to secure up to 1,500 MW of its power requirements from renewable energy sources.

Meralco’s Third Party Bids and Awards Committee (TBPAC) announced over the weekend that interested parties can challenge the offer of Terra Solar, which proposed a P6.0800 per kilowatt-hour (kWh) headline rate and levelized cost of electricity (LCOE).

Terra Solar has proposed solar power plants with an energy storage system in Batangas, Cavite, Nueva Ecija, Tarlac, and Zambales provinces.

Terra Solar committed a total of 600 MW of its power supply by February 26, 2026, while an additional 250 MW are expected to be delivered starting February 26, 2027.


Meralco said bidders should make their capacity 100 percent available for six to 13 hours daily covering the peak hours of Meralco for at least 84 hours in a week.

Meralco’s peak hours stretch from 8 a.m to 9 p.m., but they may change during the required contract period upon mutual consent of both parties.

Meralco said interested bidders have until February 2 to submit their expression of interest. A pre-bid conference will be held on February 4 while the bid submission deadline is set on March 7.

Meanwhile, Meralco is waiting for approval from the DOE to conduct another bidding for the supply of 180 MW of baseload capacity needed starting February to July this year.

The proposed contract covers February 26 to July 25, or for five months.

This is in addition to the ongoing competitive selection process for the supply of 170 MW of peaking capacity that has drawn interest from three prospective suppliers. The bid submission deadline is on February 2.


Prime Infra in December last year acquired a 50-percent stake in Solar Philippines Tanauan Corp., which is building solar farms in Batangas and Cavite provinces.

Prime Infra concluded an agreement with Solar Philippines Power Project Holdings Inc. to acquire a 50-percent interest in Solar Philippines Tanauan.

The transaction involves an investment of P2 billion and management control for Prime Infra. It is the company’s second investment in projects with Solar Philippines, after investing P1.5 billion in Solar Philippines Tarlac Corp. in 2020.

Solar Philippines Tarlac owns the 100-megawatt solar plant in Concepcion, Tarlac and is readying the expansion to 150 MW.

This brings the total investment of Prime Infra in projects in Solar Philippines to P3.5 billion.

Both investments will result in over 340 megawatts of solar projects in Concepcion, Tarlac; Tanauan, Batangas; and Maragondon, Cavite.