Instead of higher rates due to the looming power shortage, Meralco consumers will benefit from lower rates as the Solar Philippines Tarlac Farm starts dispatching to Meralco for this July’s billing.
Solar power supply is highest at midday, when power demand also peaks. The start of supply from the solar farm will save Meralco from purchasing from the Wholesale Electricity Spot Market (WESM) when prices peak, and prevent rotating blackouts as have occurred over the past months.
At P2.9999/kWh, with two percent annual escalation, this is the lowest-ever rate of any Power Supply Agreement in the Philippines. If this were to replace Meralco’s average generation rate of June 2019 of P6.0186/kWh inclusive of VAT, this may result in savings of P3.0187/kWh to Meralco consumers, or P603.74 for those with a 200 kWh monthly consumption.
This record-low rate was the result of Solar Philippines Tarlac Corporation submitting the lowest bid in a Competitive Selection Process (CSP), as required by the Department of Energy.
Meralco has announced plans for another CSP, which is expected to further lower costs for consumers.
With a peak capacity of 150 MW, the Tarlac Solar Farm is the largest solar farm in the country and the first to dispatch electricity to Meralco under a Power Supply Agreement.
To achieve its low costs, the project uses panels manufactured at the Solar Philippines Factory, the first Filipino solar panel factory, and is developed, constructed, owned and operated by Solar Philippines.
Solar Philippines President Leandro Leviste said, “We are proud to be the lowest-cost producer of electricity in the Philippines, and happy that Meralco’s approximately 30 million consumers will now benefit from these low costs. We thank Meralco for accelerating the adoption of renewable energy, and becoming the No. 1 consumer of solar in the Philippines.”