Manila Electric Co., the biggest retailer of electricity, started negotiations with the Leviste Group and business partner Enrique Razon Jr. on the supply of 850 megawatts of renewable energy, following the failed second round of the competitive selection process.
Terra Solar Philippines Inc., the joint venture of Solar Philippines Power Project Holdings Inc. of the Leviste Group and Prime Infrastructure Capital Inc. of Razon, offered Meralco P6.0800 per kilowatt-hour headline rate and a levelized cost of electricity under an unsolicited proposal.
The offer involves the delivery of 600 MW of power supply by Feb. 26, 2026 and an additional 250 MW starting Feb. 26, 2027 over 20 years.
No company submitted bids in the two CSPs to challenge the offer of Terra Solar.
Meralco’s third-party bids and awards committee did not receive any expression of interest from any prospective bidder as of the May 2 deadline for Meralco’s mid-merit requirement.
The TPBAC said that since there is no outstanding dispute on the first and second rounds of the competitive challenge for the contract, the distribution utility may enter into direct negotiation and award the 850-MW contract capacity requirement, as provided by the revised CSP rules.
“We have already started direct negotiations with the original proponent and intend to conclude it and sign the corresponding PSA for the 850-MW mid-merit requirement soonest,” said Jose Ronald Valles, head of Meralco’s Regulatory Management Office.
Solar Philippines president and chief executive Leandro Leviste confirmed the negotiations. Solar Philippines is finalizing plans for an asset-for-share swap with subsidiary Solar Philippines Nueva Ecija Corp. that will enable the latter to acquire over 20 solar project companies, including over 10,000 megawatts of projects.
Valles said the power supply agreement with Terra would also form part of Meralco’s compliance with the Department of Energy’s Renewable Portfolio Standards.
RPS requires participants to generate or procure supply and maintain a minimum percentage of RE share in their energy portfolio.