Prime Infrastructure Capital Inc. said its subsidiary, Ahunan Power Inc.’s offer to supply 500 megawatts (MW) of mid-merit power using pumped storage hydropower (PSH) as an energy storage system was declared by the Manila Electric Co. (Meralco) as an original proponent.
Prime Infra said the offer will undergo competitive challenge with Ahunan having the right to match any comparative proposals.
Meralco, through its Third-Party Bids and Awards Committee, granted the status to Ahunan last June 29.
To ensure the timely supply of power, Ahunan nominated two PSH plants, either of which can supply the 500 MW energy under its offer.
The first is located in Laguna and is undergoing pre-development while the second is in Wawa, Rizal under pre-development by Olympia Violago Water & Power Inc. (OVWPI) with which Ahunan has entered into an agreement to acquire a controlling interest.
Ahunan and OVWPI have total hydro service contracts of 1,200 MW and 500 MW dependable capacity, respectively.
Prime Infra said the development of PSH plants allows greater penetration of renewable energy sources as it can both absorb and generate electricity to follow the variability of wind and solar plants.
The company said PSH 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.
With the said process, Ahunan’s PSH plants are capable of a minimum guaranteed output of 12 hours per day covering the peak hours of Meralco.
“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 Enrique Razon, Jr., Prime Infra chairman, in a statement.
Guillaume Lucci, Prime Infra president and chief executive officer, said that the project is part of the Razon Group’s goal to integrate environmental, social and governance policies in critical infrastructure assets that they develop. – Jed Macapagal
