By Victor V. Saulon, Sub-Editor

MERALCO PowerGen Corp. (MGen) has expanded the reach of its power development plan to include 300 megawatts (MW) of wind energy and a yet-undetermined capacity for pumped storage hydropower and solar energy, company officials said.

“We’ve been asked to look at wind proposals,” said Rogelio L. Singson, MGen president and chief executive officer, referring to instructions from parent firm Manila Electric Co. (Meralco), the country’s biggest power distribution utility.

He declined to give details about the proposals, but said these are either existing or new ones. He also disclosed an upcoming meeting with a company behind a wind project near Metro Manila.

Dan Neil, MGen executive vice-president and general manager, said MGen was looking at a wind project in north Luzon and another near Meralco’s load or franchise area, each with a capacity of 150 MW. 

“I think we’d probably choose one in the short term,” he said.

Mr. Neil said MGen was looking at “either majority or significant minority” in the two wind projects, or between a 45% and 55% stake.

“For the wind projects, we’re very hopeful early next year we’d be able to make an announcement,” he said.

He said MGen had been looking at wind projects “for a number of years” although the company’s previous head — Meralco President and Chief Executive Officer Oscar S. Reyes — had been “completely focused on cost of energy to the consumer.” 

“He doesn’t believe in FiT (feed-in-tariff), correctly, that it’s increasing the cost to the consumer,” he said, referring to the guaranteed rate for 20 years offered to early developers of wind farms.

The difficulty in finding a suitable wind project in the past is largely because none had met or at least came close to the lower cost of power from coal-fired power plants, he said.

“We’re talking to a couple of developers now who we think can be competitive with coal,” Mr. Neil said. 

Ahead of the proposed renewable energy projects, MGen is developing several coal-fired power plants, including the 100% company-owned ultra-supercritical coal-fired power plant under subsidiary Atimonan One Energy, Inc. 

The two-unit plant, each with a capacity of 600 MW, is awaiting Energy Regulatory Commission (ERC)-approval of its power supply agreement (PSA). 

MGen has a 47% stake in Redondo Peninsula Energy, Inc. (RP Energy), which is awaiting the ERC nod of its PSA with Meralco for 225 MW of the first of two 300-MW units, and 75 MW with the retail electricity supply business of Aboitiz Power Corp. 

Therma Power, Inc., a unit of AboitizPower, owns 25% of RP Energy’s coal-fired power plant at the Subic Freeport Zone, while Taiwan Cogeneration International Corp. holds another 25%.

MGen has a 51% stake in another coal-fired power plant being developed in Quezon province with a capacity of 455 MW under San Buenaventura Power Ltd. Co. (SBPL).

SBPL, which is expected to start commercial operation in mid-2019, is a partnership between MGen and New Growth BV, a subsidiary of the Electricity Generating Public Co. Ltd. or EGCO Group of Thailand.

Another project, St. Raphael Power Generation Corp., is a 50-50 partnership between MGen and Consunji-led Semirara Mining and Power Corp. It is also awaiting ERC’s approval of its 400-MW PSA with Meralco. The planned coal power plant in Calaca, Batangas has two units, each with a capacity of 350 MW. 

Mr. Singson, who was appointed to his post at MGen in September, said aside from coal and wind, the company is also looking at solar and pumped storage hydro projects.

“We cannot do away with solar. We’re even looking at pumped storage,” he said. “We think solar in the next five years will become more viable with energy storage.” 

Mr. Neil said Meralco had signed off-take agreements with solar developers but not necessarily putting in equity in their projects.

“But we’re certainly working hard at developing our own,” he said.

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