THE ENERGY REGULATORY COMMISSION (ERC) has given Manila Electric Co. (Meralco) the go‑ahead to start out sourcing 21 megawatts (MW) of renewable energy from Santa Cruz Solar Energy, Inc. (SCEI), a subsidiary of ACEN Corp.
In a choice promulgated Feb. 25, the ERC granted final authority for Meralco and SCEI to implement their 10‑12 months power supply agreement (PSA) starting Feb. 26.
The regulator approved a contract price throughout the minimum energy offtake price of P8.98 per kilowatt-hour (kWh).
Under the approval, SCEI could provide the contracted capability from its plant, the electricity spot market, or other sources.
The ERC said any renewal or extension of the PSA term isn’t allowed.
“Meralco is hereby directed to efficiently utilize the contracted capability from all its suppliers taking into consideration its obligation to produce in any case cost,” the ERC said.
SCEI is ACEN’s special purpose vehicle for the event of renewable energy projects within the Philippines. It’s currently developing the big‑scale San Marcelino solar energy project in Zambales.
The corporate was among the many winning bidders in Meralco’s 2024 competitive selection process to cover a 500‑MW mid‑merit requirement starting February 2025.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of the PLDT Useful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera