Meralco recently signed a 20-year deal with Terra Solar Philippines, Inc., to supply them with 850 megawatts of renewable energy to cover the former’s mid-merit requirement starting in 2026.
Meralco said that their power supply agreement (PSA) requires Terra Solar to deliver 600 megawatts of power to Meralco by February 26, 2026, while the additional 250 megawatts should be supplied starting February 26, 2027.
The supplied energy will have a headline and levelized cost of electricity (LCOE) of Php5.80 per kilowatt-hour. A figure based on assumptions during the time the competitive challenge for the proposal was launched.
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In a statement, Meralco FVP and regulatory management head Jose Ronald V. Valles said that renewable energy is “very competitive and lower” than fossil-powered plants, which is more significant now that fuel prices are increasing.
He added that, with its partnership with Terra Solar, Meralco ensures that its 7.5 million+ customers will have an “adequate and cost-competitive” power supply in the coming years.
The PSA is also part of Meralco’s compliance with the Department of Energy’s (DOE) Renewal Portfolio Standards policy and also solidifies its commitment to using renewable energy to source up to 1,500 megawatts of its power requirement.