Meralco eyes 2nd microgrid project in Quezon province

MANILA, Philippines — Manila Electric Co. (Meralco) is eyeing another microgrid project in Cagbalete Island, Quezon, with the initial phase to be completed by the end of the year.

The country’s largest power distributor is also exploring other areas in Palawan for possible microgrid projects.

Meralco is addressing the lack of 24/7 power services in Cagbalete, as pointed out by the Department of Energy (DOE) last year, through the development of a hybrid microgrid solution, Meralco senior vice president Alfredo Panlilio said.

“We just got approval from the board. We have to apply,” he said. “It’s in our franchise in Quezon Province, so we already have a hybrid solution with solar panels, batteries and gensets.”

Panlilio said the company would soon be filing an application for the capital expenditure (capex) and tariff of the microgrid project with the Energy Regulatory Commission (ERC).

The capex is still being finalized while the power rate is estimated at P20-22 per kilowatt-hour (kwh).

“It’s much cheaper than what they are paying now,” Panlilio said, noting residents are currently being charged P35 to P40 per kwh.

The Cagbalete project will have a 2.5 megawatt (MW) solar power component with 4.2 MW of battery energy storage and 1.9 MW of diesel genset which will be developed over a five-year period.

But the project will be done in phases, initially with 1.4 MW of solar, 2.1 MW of battery storage and one MW of diesel genset, Panlilio said.

“COD (commercial operation date) is end of this year for the first phase which will power up 600 households and 10 resorts, then we build it up until 2024,” he said.

Meanwhile, Meralco was approached by the Ayala Group for possible microgrid projects in their developments in Palawan.

“Ayala has been talking to us for an underserved area for Palawan. They are asking us to look at Lio Resorts and Sicogon,” Panlilio said.

“Talks are still in the early stages and they’re asking us whether we could have a solution for that so we are doing surveys and checking what is the requirement,” he said.

Last month, Meralco switched on its first microgrid project in Isla Verde, Batangas, giving power services to 30 households.

It had collaborated with the Batangas City local government unit, United States Agency for International Development  for a 32-kilowatt solar panel microgrid and 192-kwh battery storage facility.

Microgrid is a small-scale power grid that can be operated independently from the country’s interconnected network of power transmission facilities.

It supports the distribution utility’s initiatives towards using more sustainable energy sources and highlights efforts on rural electrification, a point of focus by President Duterte, who has said that he wanted to put a stop to hurdles in the electrification of rural areas.

Prior to the completion of the project, residents of the island have been subsisting on diesel generator sets from 6 p.m. to 10 p.m. for electricity for years.