Meralco PowerGen Corp., a unit of Manila Electric Co., is still confident the supply agreement of the 1,200 megawatt Atimonan One Energy coal power plant will obtain the approval of the Energy Regulatory Commission.
A1E is building a coal-fired power plant costing around P150 billion. AIE, along with Meralco, has a pending PSA application which it filed with the ERC over two years ago.
A1E filed its fourth appeal to resolve the PSA with the ERC, citing the significant negative impacts to the overall project in terms of total cost, timetable and eventual power prices.
“We do not see any reason for further delays, especially with the expected increase in demand and load growth that comes with the government’s massive infrastructure projects under the Build Build Build Program,” Meralco PowerGen president and chief executive officer Rogelio Singson said.
Singson cited the Department of Energy’s recent recognition of A1E’s status as an Energy Project of National Significance as a major contributing factor that would impact positively on the project development.
Executive Order No. 30 signed by President Rodrigo Duterte, says projects declared as EPNS should be acted upon within a 30-day period. Duterte signed EO 30 so that identified EPNS projects are prioritized to avoid unnecessary delays in the implementation of the government’s Philippine Energy Plan.
A1E will provide highly efficient base load supply in the country. Completion of the first 600 MW is scheduled by the third quarter of 2023 and the second unit by the first quarter of 2024.
“The A1E PSA was legally filed in accordance with the rules and regulations of ERC, it was subjected to very stringent evaluation process and scrutiny by many consumer groups, and underwent many public hearings in compliance with legal and regulatory requirements. This was done with the objective of ensuring adequate and reliable power supply at least cost to Meralco’s customers, thus, we find strong merit in positively acting on this agreement,” Singson said.