The Market Monitor Minding the Nation's Business
Meralco consumers may soon enjoy 30 percent lower rates as a result of record prices from solar developers.
On June 28, Meralco published an invitation to bid in a Competitive Selection Process (CSP) to supply 85 megawatts (MW), challenging a proposal submitted at P3.50 per kilowatt-hour.
Solar Philippines was the lone challenger on the bid submission deadline of August 14. In July, Solar Philippines submitted to the country’s electric utilities a plan to replace planned coal plants with 5000 MW of Solar-Battery farms, at a rate to be disclosed at a later time.
“We have opted to sacrifice our returns to offer Meralco consumers the same price on 85 MW as we have offered for 5000 MW. The exact rate will be made public next week, but what we can disclose is it should be the lowest true cost of generation in Philippine history,” Solar Philippines President Leandro Leviste said in a statement.
“Previously, we couldn’t fault the power industry for not believing in solar, because the local market had not yet demonstrated that solar could be cheaper and more reliable than coal. Now, we hope this price will signal that Solar-Battery farms offer the least cost for the Philippines, such that even fossil fuel companies will convert to solar, to improve their returns through lower costs,” he added.
Vertical integration has enabled Solar Philippines to make solar cost-competitive. Earlier this year, Solar Philippines began manufacturing solar panels in Sto. Tomas, Batangas, becoming the first Filipino company to do so.
At 800 MW annual capacity, this will become one of the region’s largest and most advanced solar factories, generating thousands of jobs, and making 24/7 renewable energy that is 30 percent cheaper than utility rates accessible for all Filipinos.
Earlier this month, Solar Philippines announced that it will soon begin exporting solar panels, under Original Equipment Manufacturer (OEM) contracts with suppliers from China for export to the US and Europe, made possible by the international community’s confidence in the Philippines under the Duterte administration.
Philippine President Rodrigo Duterte has been invited to inaugurate the Solar Philippines Factory, as a recognition of the progress made by the Duterte administration to uplift the lives of Filipinos by accelerating economic development through high-tech manufacturing industries.
“We are in full support of President Duterte’s vision of our nation achieving first-world status in the coming years, and believe lower electricity prices and global leadership in solar and battery storage will cement the position of the Philippines as Asia’s next Tiger Economy,” Leviste said.