ACEN gets ERC nod for La Union power deal
ACEN Corp. has secured approval from the Energy Regulatory Commission (ERC) to supply La Union Electric Co. Inc. ‘s (Lueco) power requirements for 10 years.
The Energy Regulatory Commission (ERC) has granted provisional authority to ACEN Corp. and La Union Electric Co. Inc. (Lueco) to implement a 10-year power supply agreement (PSA) for Lueco's electricity needs. This approval, issued on September 23, ensures a stable and dependable electricity supply for Lueco, covering 46 to 97 megawatts (MW) of capacity.
The ERC's decision comes after the expiration of the emergency power supply agreement (EPSA) 2 between Lueco and ACEN's unit, South Luzon Thermal Energy Corp. (SLTEC), on September 25. Without an active PSA or EPSA, Lueco would face significant power supply shortages, estimated to persist until 2036. ACEN secured the lowest bid of P5.9684 per kilowatt-hour in Lueco's competitive selection process and will supply 46.23 MW to 62.42 MW of power in the first year, with requirements increasing annually to 64.39 MW to 97.38 MW by the 10th year.
The PSA also enables Lueco to meet its renewable portfolio standards obligations, as the deal allows for the sourcing of a portion of electricity from eligible renewable energy facilities. Together, ACEN and Lueco plan to provide La Union's 21 municipalities and one city, along with one town in Pangasinan, with continuous and reliable electricity at reasonable rates.
ACEN operates the Islasol Manapla Solar Power Plant and the Islasol La Carlota Solar Project in Negros Occidental, in addition to SLTEC's 269.96-MW coal-fired thermal power plant in Batangas.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
