TeaM Energy in talks with Meralco for supply deal

TeaM Energy Corp. (formerly Mirant Philippines), the consortium of Japanese firms Tokyo Electric and Marubeni Corp., is in talks with Manila Electric Co. (Meralco) for a possible supply agreement for the planned expansion of the 735-megawatt (mw) coal-fired power plant in Pagbilao, Quezon.

In a press conference, TeaM Energy executive vice president Satoru Harada said they are hopeful that they could seal an agreement with Meralco, although he pointed out that there are no sealed agreements yet with the country’s largest power distributor.

“We are hoping that Meralco would buy bulk of the 350-mw expansion,” Harada said.

TeaM Energy president Federico Puno, on the other hand, said it is necessary for them to have buyers of the additional power that would be produced from the expansion project.

“What we’re trying to put up for the Pagbilao expansion, the first critical one is to at least get 250 mw of power purchase agreement from interested off-takers,” Puno said.

Meanwhile, Puno said the company has sold its excess 52 mw capacity. The Sual plant in Pangasinan has a surplus capacity of 218 mw while the Pagbilao facility has an excess output of 35 mw.

“We’re working on the rest and these are a mix of private utility, rural electric cooperatives and some industrial accounts,” he said.

Within the year, he said they plan to close a sales agreement for 250 mw to be generated from the planned expansion of the Quezon-based power facility.