Ricky Razon’s renewables firm, MVP-led Meralco ink 20-year power supply contract

Terra Solar Philippines, a subsidiary of ultra bilyonaryo Ricky Razon’s Prime Infrastructure Capital, has inked a deal for the supply of 850 megawatts of electricity to support the mid-merit requirement of Manila Electric Co.

The 850 MW supply can power about 1.55 million houses per year (average of 200kWh/month), while displacing an annual consumption of 1.4 million tons of coal or 930 million liters of oil.

“This contract with Meralco is our response to help meet the increasing demand for power through a more cost-efficient and sustainable manner. We applaud Meralco for its drive to decarbonize the energy industry and ensure reliable quality power supply to support its customers,” said Razon, chairman of Prime Infra.

“Meeting the power supply needs is of paramount importance to sustain the economic growth of the country, particularly following the challenges we faced through the pandemic and will continue to face in light of the economic headwinds the world is facing today,” he added.

Razon said his investments in renewable energy infrastructure is in line with efforts to help “bring down the cost of power while creating long-term economic, environmental and social values.”

The signing of the 20-year contract with Meralco marks the culmination of the competitive selection process the renewable energy project underwent.

The project is a combination of 2,500 to 3,500 MW solar photovoltaic system and approximately 4000MWh to 4500MWh energy storage.

Through this innovative system, Terra Solar’s sites can bank excess energy when electricity is produced and supply it back to the grid when necessary, providing stable power to customers and communities.

Terra Solar is the first to offer the combination of solar PV and energy storage in such a large scale in the Philippines, shifting the nature of a solar plant from usual peaking to one which provides mid-merit capacity.

For the Meralco PSA, 600MW will be available by 2026, while the additional 250MW will be delivered in 2027.

“We are proud to develop this innovative, solar PV-plus-storage project that will contribute significantly to the share of renewable energy in the power generation mix. We are on track in the project development stage and target to provide stable mid-merit power supply to Meralco starting 2026,” said Terra Renewables president and CEO Guillaume Lucci.

“This plant is today one of the largest contracted solar plus storage plant in the world.

Prime Infra, together with its partner, will invest P200 billion to develop Terra Solar. It is a step change in the way power generation is approached. As a company pursuing economically critical and socially relevant infrastructure, Prime Infra is committed to do its part in accelerating the clean energy transition and strengthening the country’s energy security,” Lucci added.

Opec+ likely to maintain oil output levels

Major oil-producing countries led by Saudi Arabia and Russia look set to maintain their current output levels at a meeting Sunday, ahead of fresh sanctions against Moscow coming into force.