January 10, 2016 - Meralco dips into mini-hydro development
MANILA, Philippines – Power distributor Manila Electric Co. (Meralco) is taking control of a joint venture with Repower Energy Development Corp. (REDC) in renewable energy (RE) development.
In a disclosure to the Philippine Stock Exchange, Meralco said the agreement with REDC would entail the establishment of a joint venture company that would pursue and undertake the development of various hydroelectric power projects.
Meralco will have an "equity stake equivalent to 50 percent minus one share of the authorized capital stock of the proposed JVC".
The partnership marks Meralco's foray into mini-hydropower development.
The partners will hold a series of ground breaking ceremonies for mini-hydropower plants in select regions starting in the first half of the year.
REDC has over 100 megawatts (MW) of mini-hydropower projects clustered in Quezon, Camarines Sur, Bukidnon, and other provinces under development with investments worth $400 million.
The joint venture will have its first set of hydropower plants operational by 2019. These facilities will avail of the feed-in-tariff (FIT) scheme mandated by the Renewable Energy Act of 2008.
The FIT system entitles power developers to receive a set of incentives for a period of time to build RE projects.
Developers of run-of-river hydro projects, on the other hand, are entitled to a FIT allowance rate of P5.90 per kilowatt-hour.
January 9, 2016 - Meralco, Repower to form new hydropower company
DOMINANT power distributor Manila Electric Co. (Meralco) signed on Wednesday a shareholders' agreement with Repower Energy Development Corp. to form a joint-venture company to the develop of various hydroelectric power projects in the country.
In a disclosure to the Philippine Stock Exchange, Meralco said under the deal, the company will have an equity stake of 50 percent minus one share of the authorized capital stock of the proposed joint venture firm.
It will be recalled that Meralco and Repower have earlier agreed to form the joint venture for the development of mini hydropower plants across the country.
It will be Meralco's first foray into mini-hydropower development, a renewable energy source.
Founded in 1891, Meralco is the Philippines' largest distributor of electric power. It is Metro Manila's only electric power distributor and holds the power distribution franchise for 22 cities and 89 municipalities, including the whole of the National Capital Region, as well as the provinces of Bulacan, Cavite, Rizal, Batangas, Laguna, and Quezon.
Meralco (PSE:MER and MERB) is list ed in the Philippine Stock Exchange and is part of the exchange index (PSEi).
Meanwhile, Repower was established in 2013 to address the country's call for additional investments in the renewable energy sector, with the goal of setting up and operating hydropower plants all over the country.
The firm is focused on expanding its hydropower projects in target areas in the country, using the "clustered approach method" done by building several hydropower projects in a particular area, "resulting in increased energy capacity output, utilizing the same transmission lines, infrastructure developments, and other fixed costs, and economies of scale."
To date, the firm has over 100 megawatts (MW) of mini-hydropower projects clustered in Quezon, Camarines Sur, Bukidnon, and other provinces under development, representing a total investment of $400 million.
January 8, 2016 - Meralco, Repower seal joint venture deal
The Manila Electric Co. (Meralco) and Repower Energy Development Corp. have secured the terms of a joint venture deal to build hydropower plants.
"The company signed today, January 7,2016, the joint venture agreement (JVA) and shareholders' agreement (SHA) with Repower Energy Development Corp.," Meralco told the stock exchange on Friday.
The deal covers the establishment of a joint venture company for developing hydroelectric power projects.
The SHA obliges Meralco to have an equity stake equivalent to 50 percent, minus one share, of the authorized capital stock of the proposed company.
Repower is currently developing over 100 megawatts (MW) of mini-hydropower projects in Quezon, Camarines Sur, Bukidnon, and other provinces.
"This represents a $400-million investment in mini-hydropower development," Meralco said last month.
The joint venture will take advantage of the feed-in-tariff (FIT) scheme – as spelled out in the Renewable Energy Act of 2008 – with the FIT rate of P5.9 per kilowatt hour guaranteed by the government for 20 years.
January 8, 2016 - Meralco forms mini-hydro JV with Repower
MANILA Electric Co. (Meralco) and Repower Energy Development Corp. have agreed to put up a joint venture company that will pursue and develop various hydro electric power projects, the utility told the stock exchange.
It also disclosed that the two companies have signed a shareholders' agreement in which Meralco will have an "equity stake equivalent to fifty percent minus one share (50%-1 share) of the authorized capital stock" of the joint venture company.
The deal follows the companies' agreement in December last year to build and develop mini-hydropower plants, which Repower said represented an investment of $400 million.
Repower said that with the partnership, Meralco would be able to provide millions of its customers with green, sustainable energy by harnessing the country's hydro electric power capabilities.
Repower has over 100 megawatts of mini-hydropower projects being developed in Quezon, Camarines Sur, Bukidnon and other provinces. Its Rangas mini-hydropower project in Camarines Sur broke ground early this month. The company is set to start in the first quarter of 2016 another project in Labayat, Quezon.
In November, Repower acquired Philippine Power and Development Co., owner of the country's three oldest operating mini-hydropower plants. These plants in Laguna sell their power output to Meralco, the country's largest electricity distributor.
Meralco's controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT).
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