MANILA — The Enrique Razon-led Prime Infa said on Thursday its renewable power subsidiary signed a 20-year power supply agreement (PSA) with Meralco.
Under the deal, Terra Renewables under Terra Solar Philippines will provide 850MW mid-merit supply, which can approximately power 1.55 million houses yearly while displacing 1.4 million tons of coal consumption or 930 million liters of oil per year, Prime Infra said in a statement.
“This contract with Meralco is our response to help meet the increasing demand for power through a more cost-efficient and sustainable manner," Razon said.
"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.
Prime Infra said the project is powered by a combination of 2,500 to 3,500MW solar photovoltaic (PV) system and approximately 4000MWh to 4500MWh energy storage.
A 600MW supply will be available by 2026 for the Meralco PSA, while the additional 250MW will be delivered in 2027, the company said.
Terra Renewables President and CEO Guillaume Lucci said Prime Infra and its partners plan to further invest P200 billion in developing Terra Solar.
"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 said.
Razon said Terra Renewables' further investments in infrastructure aim to bring down costs of power while creating long-term economic and environmental values.
Razon has also secured the nod of the Department of Energy for the acquisition of Shell's 45-percent interest in the Malampaya Service gas project.