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.