Ahunan Power Inc., a subsidiary of Prime Infrastructure Capital Inc. of tycoon Enrique Razon Jr., offered to supply retailer Manila Electric Co. with 500 megawatts from a pumped storage hydropower project.
Meralco’s third-party bids and awards committee granted the original proponent status to Ahunan on June 29.
“Meralco continues to be guided by the DOE’s [Department of Energy] CSP [competitive selection process] rules and its mandate under the EPIRA [Electric Power Industry Reform Act] to provide least-cost supply through this competitive bidding and all other CSP exercises,” said Meralco vice president and head of utility economics Lawrence Fernandez when asked for comment.
Ahunan’s offer is subject to competitive challenge under the DOE rules, with Ahunan having the right to match any comparative proposals.
“We are pleased to continue putting forward innovative solutions to Meralco and consequently having been granted the original proponent status to Ahunan. We look forward to the opportunity of further providing renewable energy sources that are reliable and sustainable,” said Razon, chairman of Prime Infra in a statement.
Ahunan nominated two pumped hydro plants, either of which can supply the needed 500 MW, to ensure the timely supply to Meralco.
The first in Laguna is undergoing pre-development, while the second is a pumped hydro plant in Wawa, Rizal under pre-development by Olympia Violago Water & Power Inc.
Ahunan signed an agreement to acquire a controlling interest in OVWPI.
“This project is a testament to our goal of integrating ESG in the critical infrastructure assets that we deliver. Prime Infra will continue to pioneer energy and other infrastructure projects that are environmentally resilient and socially relevant,” said Prime Infra president and chief executive Guillaume Lucci.
Ahunan and OVWPI have hydro service contracts of 1,200 MW and 500 MW, which represent an additional 8-percent dependable installed capacity to the grid.
Ahunan said the development of pumped storage plants is a move away from the traditional oil or gas-based power for mid-merit and peaking.
It said the pumped storage project is also an energy storage system, which allows greater penetration of renewable energy sources as it can both absorb and generate electricity to follow the variability of wind and solar plants.
Pumped storage plants store and generate electricity by moving water between two reservoirs at different elevations. Water is pumped from the lower reservoir to the upper reservoir during off-peak hours to store underutilized energy, then released from the upper reservoir to the lower reservoir to generate electricity in times of high demand.
Ahunan’s pumped storage plants have a capability of a minimum guaranteed output of 12 hours per day covering the peak hours of Meralco.