Southwest Luzon Power Generation Corp., a wholly-owned subsidiary of Semirara Mining Corp., has entered into an agreement to supply power to Manila Electric Co. (Meralco).
In a disclosure to the Philippine Stock Exchange (PSE), Semirara said Southwest Luzon will supply power to the local Retail Electricity Supplier (RES) segment of Meralco for two years.
The PSA, which will run from March 26, 2016 until December 25, 2018, will have a total capacity of 120 megawatts (MW).
Semirara said the PSA may be extended up to four years upon mutual agreement of the parties.
SEM Calaca Power Corp., also a wholly owned subsidiary of Semirara Mining, is currently operating a 600-MW coal-fired thermal power plant in Calaca, Batangas.
The company is currently developing a 300MW power plant adjacent to the existing one as part of its expansion.
The 300-MW coal facility (Phase 1) of Southwest Luzon is part of a bigger project to have a new 1,200-MW coal-fired power plant complex in Batangas.
With the expansion, Semirara will be able to triple the capacity of its existing 600-MW Batangas coal facility at the site to 1,800 MW.
For its part, Meralco remains committed to take the lead in driving innovation and creating a better future with MPOWER, its local retail electricity supplier.
MPOWER is the preferred retail electricity supplier across top industries, the company said.