Solar Philippines challenges bid for Meralco’s 24/7 power supply

Photo via

via – Solar Philippines is challenging the bid of First NatGas Power Corporation for the 24/7 power supply of the Manila Electric Company (Meralco), coming from the 414-megawatt (MW) San Gabriel gas power plant.

The solar producer said in a statement over the weekend that it submitted an offer for Meralco’s 24/7 power supply at P2.99 per kilowatt hour (kWh), in response to the power firm’s invitation for a price challenge of an unsolicited proposal by First NatGas.

First NatGas offered to supply power by using gas technology. Solar Philippines, meanwhile, said it offered to use battery storage and solar energy for cleaner, “lower cost” supply.

In the past 3 months, Meralco’s average generation rate was at P4.74 per kWh. According to Solar Philippines, its rate of P2.99 per kWh would allow consumers to save “over 30% or an estimated P75 billion per annum.”

“Consumers may save even more compared to gas plants, such as First Gas Philippines Corporation’s 500 MW, which in the past 3 months supplied Meralco at an average rate of P5.44 per kWh inclusive of value added tax,” Solar Philippines said.

The solar producer’s offer came after Meralco’s failed auction in a competitive selection process (CSP), after no company was qualified to challenge the proposal of First NatGas. This was due to the CSP’s requirement that “the fuel for the generation of the Price Challenger must be the same as the Original Power Supplier, which is natural gas.”

After the failed auction, Solar Philippines said Meralco may now choose whether to rebid under the same CSP terms or change these to allow other technologies to compete on the basis of cost.

Energy Secretary Alfonso Cusi has said all power procurement should be “technology-neutral” and should not favor any single supplier.

Back in 2017, the Department of Energy (DOE) halted several CSPs of electric cooperatives due to terms that limited bidders to new technologies.

“The rules espoused by Secretary Cusi and Senator [Sherwin] Gatchalian on the conduct of CSPs will be one of the greatest steps ever taken to lower power rates in the Philippines. Large commercial and industrial customers already enjoy rates near P3 per kWh under Retail Competition and Open Access,” said Solar Philippines president Leandro Leviste.

“If competition is opened to the widest field of players, residential customers would also enjoy such low costs, translating to P1,000 in savings per household per year,” he added.

Leviste also said his firm’s offer would allow Meralco to save an average of 30%.

“WESM (Wholesale Electricity Spot Market) prices are at an all-time low, and new plants from companies like Aboitiz and San Miguel now offer consumers very low rates,” he added.

Solar Philippines had installed the nation’s first MW-scale Solar-Battery Micro-Grid in Paluan, Occidental Mindoro, to provide 24/7 power for an entire town at a lower cost than gas.

Solar Philippines and Meralco had entered into long-term power supply agreements (PSAs) in the past.

The first deal entailed Solar Philippines supplying Meralco with 50 MW at a base price of P5.39 per kWh.

Another agreement also states that Solar Philippines will supply Meralco 75 MW to 85 MW for 5 years and another 85 MW from the 6th year up to the 20th year for P2.9999 per kWh.

Find more like this: News

  • IKEA to open stores in Philippines, looking for designer
  • Meghan Markle Speaks Filipino to Well-Wishers Visiting from the Philippines
  • Rappler barred from covering Malacañang events
  • 2018 Winter Olympics: Philippines’ Asa Miller lands 70th in giant slalom
  • Pinoy time may be acceptable to some but not at Manila City Hall tower
  • Page 1 | 2 | 3 | 4 | 5 | 6 | 7


  • Pixar’s first female supervising animator is Pinoy
  • Miss Great Britain training for Miss Universe with Pinoy coaches
  • The story behind the Pinoy-made ‘tsinelas’ action figures
  • Pinoy rap pioneer Vincent Daffalong dies at 64
  • Singer from Manila becomes 4th Filipino to enter ‘X Factor UK’
  • MORE...


  • The Box That Brings Christmas to the Philippines
  • ‘Pinoy Aquaman’ swims 23 kilometers for peace in Mindanao
  • Former Pinoy dishwasher now owner of pizzeria in Italy
  • Women’s servitude blights Philippine society
  • Filipino hikers seen picking up litter praised widely by HK netizens
  • MORE...


  • El Nido to impose daily visitor limits in 3 iconic tourist sites
  • Philippines starts building world’s first resort airport
  • aurumOne Makati Hotel – ‘Perfectly Simple’
  • Palawan is world’s top island; Boracay 12th
  • Philippines waives visa requirements for 7 more countries
  • MORE...


  • 2018 Winter Olympics: Philippines’ Asa Miller lands 70th in giant slalom
  • Michael Christian Martinez: Olympian and pioneer in Philippine figure skating
  • Basketball’s greatest show comes to Philippines
  • Laker Jordan Clarkson: ‘It feels good to be Filipino’
  • 75-year-old Pinoy lola sets powerlifting record
  • MORE...

    OFW News

  • DOLE suspends OFW deployment to Kuwait
  • Some OFWs turn to vlogging to beat loneliness, share life abroad
  • Overseas Filipino Bank to serve immigrants, workers
  • The ‘bagong bayani’ of the Philippines
  • Which countries pay OFWs the highest?
  • MORE...


  • Luzon has greatest concentration of unique mammals
  • Mindanao plants 3M trees in an hour, challenges world record
  • Fighting for sharks in the Philippines
  • DENR to crush seized elephant tusks, drops ceremonial burning
  • British billionaire promotes solar bulbs
  • MORE...

    Pinoy Places
    and Faces