Meralco seeks ERC nod for biogas supply deal

Meralco is seeking approval from the Energy Regulatory Commission (ERC) for a new 20-year renewable energy supply agreement with First Quezon Biogas Corp. (FQBC).

This deal involves a 1.25-megawatt (MW) supply from FQBC's biogas plant in Candelaria, Quezon, which converts agricultural waste into clean energy.

The proposed supply rate is P6.50 per kilowatt-hour, which is lower than the P7.889 per kWh rate if sourced from the spot market.

Meralco estimates that this agreement will lead to cost savings of approximately P15.2 million for its customers, resulting in a slight reduction in the average blended generation rate.