The Manila Electric Co. (Meralco)will negotiate with Terra Solar Philippines Inc. on its unsolicited proposal to supply 850 megawatts (MW) of renewable energy.
The direct negotiation is an offshoot of the failure of the second round of competitive selection process (CSP) to find for possible challengers of the company’s proposal to sell electricity to Meralco for a period of 20 years at a P6.0800 per kilowatt hour headline rate and levelized cost of electricity.
“We intend to conclude (the negotiations) with the original proponent and sign the corresponding PSA (power supply agreement) for the 850 MW mid-merit requirement soonest… The PSA will also form part of Meralco’s compliance to the Department of Energy’s policy of Renewable Portfolio Standards,” said Jose Ronald Valles, Meralco head of regulatory management office, in a statement.
The Third-Party Bids and Awards Committee for the CSP and Terra Solar, said there were no outstanding disputes on the first and second rounds of the CSP which clear the conduct of the direct negotiations between the parties.
Terra Solar’s proposed solar power plants to supply the 850 MW are in Batangas, Cavite, Nueva Ecija, Tarlac and Zambales which will also be equipped with an energy storage system. A total of 600 MW of the power supply will be available by Feb.26, 2026 while the remaining 250 MW is expected to be delivered starting Feb. 26, 2027.
Terra Solar is a joint venture between the Razon-led Prime Infrastructure Capital and Solar Philippines Power Project Holdings. – Jed Macapagal
