MANILA Electric Co. (Meralco), the country’s largest power distribution utility, is keen on expanding its competitive renewable energy footprint, a top executive said.
Meralco President Oscar Reyes told reporters that the listed power company is looking at renewable energy not only because it is less harmful to the environment but also because clean energy falls within the blended generation charge.
Reyes said additional RE capacity will not push up the generation charge, thereby supporting Meralco’s drive to keep generation charges low.
Meralco said its overall generation charge increased by P0.1925 per kilowatt hour (kWh) to P4.9080 per kWh in November from P4.7155 per kWh in October. The utility said this was due to higher spot market charges and the depreciation of the peso against the US dollar.
In October, Reyes said Meralco has already procured about 185 megawatts (MW) of the 200MW solar capacity it is targeting for its franchise areas.
Meralco holds the largest market capitalization among listed utility and power sector companies in the country.
The power distributor sealed a power supply agreement (PSA) with Solar Philippines to procure 85 MW of solar energy at P2.99 per kWh, which would be sourced from the latter’s plant being built in the municipality of Concepcion in Tarlac.
Established in 1919, Meralco’s subsidiaries are in engaged in engineering and consulting, construction, bills payments, and other electricity-related services.
Shares of Meralco rose P2.00 or 0.64 percent to end at P315 on Wednesday.