DOMINANT power distributor Manila Electric Co. (Meralco) signed on Wednesday a shareholders’ agreement with Repower Energy Development Corp. to form a joint-venture company to the develop of various hydroelectric power projects in the country.
In a disclosure to the Philippine Stock Exchange, Meralco said under the deal, the company will have an equity stake of 50 percent minus one share of the authorized capital stock of the proposed joint venture firm.
It will be recalled that Meralco and Repower have earlier agreed to form the joint venture for the development of mini hydropower plants across the country.
It will be Meralco’s first foray into mini-hydropower development, a renewable energy source.
Founded in 1891, Meralco is the Philippines’ largest distributor of electric power. It is Metro Manila’s only electric power distributor and holds the power distribution franchise for 22 cities and 89 municipalities, including the whole of the National Capital Region, as well as the provinces of Bulacan, Cavite, Rizal, Batangas, Laguna, and Quezon.
Meralco (PSE:MER and MERB) is list ed in the Philippine Stock Exchange and is part of the exchange index (PSEi).
Meanwhile, Repower was established in 2013 to address the country’s call for additional investments in the renewable energy sector, with the goal of setting up and operating hydropower plants all over the country.
The firm is focused on expanding its hydropower projects in target areas in the country, using the “clustered approach method” done by building several hydropower projects in a particular area, “resulting in increased energy capacity output, utilizing the same transmission lines, infrastructure developments, and other fixed costs, and economies of scale.”
To date, the firm has over 100 megawatts (MW) of mini-hydropower projects clustered in Quezon, Camarines Sur, Bukidnon, and other provinces under development, representing a total investment of $400 million.