THE ENERGY REGULATORY Commission (ERC) has approved Manila Electric Co.’s (Meralco) power supply agreements (PSAs), enabling the power distributor to meet its renewable energy (RE) supply requirement starting February next year.

The regulator granted provisional authority to Meralco to implement its power supply deals with San Roque Hydropower, Inc. (SRHI) and Gigasol3, Inc., according to a document posted on its website.

SRHI and Gigasol3 emerged among the winning bidders during the competitive selection process (CSP) conducted in July for Meralco’s 500-megawatt (MW) renewable energy supply requirement.

SRHI offered the lowest rate of P7.10 per kilowatt-hour (kWh) for 340 MW of the total requirement.

Gigasol submitted a rate of P8.1819 per kWh for 139 MW, while Santa Cruz Solar Energy, Inc. (SCSEI) covered the remaining 21 MW at a rate of P8.1998 per kWh.

All offers were below the P8.2380 per kWh reserve price set for the CSP.

SRHI, formerly known as Strategic Power Development Corp., is a subsidiary of San Miguel Global Power Holdings Corp., the power arm of San Miguel Corp. (SMC).

The SMC unit is the administrator of the 345-MW San Roque Hydroelectric Power Plant in Pangasinan.

Meanwhile, Gigasol3 owns, operates, manages, and maintains the Palauig Solar Power Plant in Zambales, and administers the output of the Alaminos Solar Power Plant in Laguna.

Gigasol 3 and SCSEI are subsidiaries of ACEN Corp. under the Ayala Group.

The ERC, however, approved a lower fixed rate for SRHI and Gigasol3 at P5.1908 per kWh “without any escalation or adjustment.”

“The rates provisionally approved by the Commission were based on average rate of other mid-merit supply to Meralco,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said in a Viber message.

“We need to further evaluate the higher rates in these PSAs (more than P8/kWh), as well as the reserve price set by Meralco, and these will all be covered in the final authority to be issued after evaluation,” she added.

The ERC has yet to release its decision on the power supply deal between Meralco and SCSEI.

The 10-year PSAs resulting from the CSP will cover Meralco’s 350-MW mid-merit requirement starting February 2025 and will increase by 150 MW starting February 2026.

Renewable energy is expected to account for 22% of Meralco’s supply portfolio by 2030.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

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