Meralco seeks partner for power generation venture

Hong Kong – Power utility giant Manila Electric Co.(Meralco) is hoping to select a partner for its initial foray into the power generation business towards the latter part of the year, a top company official said.

Meralco first vice-president and treasurer Rafael Andrada told reporters that the power retailer is already in talks with a number of parties that have signified interest to partner with them for its power generation iniative.

Andrada said those who have access to fuel and technology and long-term financing would have the advantage. He declined to name the interested companies, saying talks are in preliminary stages. 

“We hope to make announce-ments before the end of the year. We’re looking for partners that will bring substantial value to the table,” he said.

He, however, pointed out that while Meralco is keen on partnering with existing power generation companies, the utility distributor would still take a majority position.

 “Everyone is talking to us. We’re looking at power generation assets that would fit into our objective of lowering prices in the future. At the moment, coal would be the most competitive among other fuels available for power generation but there is also potential for LNG (liquefied natural gas),” Andrada said.

Meralco earlier disclosed plans of initially acquiring a stake in existing power plants to handle its short-term requirements and eventually putting up its own greenfield power plants as possible new sources of electricity. 

Government estimates that Metro Manila and some provinces in Luzon might experience power shortages by 2013 should there be no facilities put up in the coming years.

The Department of Energy earlier said Luzon needed additional capacities of 11,900 megawatts from 2010 to 2030. However, committed power projects for Luzon during the period are estimated to generate only 600 MW.