1590 Energy Corp. (1590EC), one of the power generating units of listed Vivant Corporation, has signed a one-year power supply agreement with Meralco.
In a statement, 1590EC said the agreement covers 170MW of Firm Contract Capacity from February 26 to July 25, 2016 and 170MW Non-firm Contract Capacity from July 26, 2016 to February 25, 2017.
The agreement will be implemented upon securing ERC’s provisional approval and shall have a term of one-year, which shall be automatically extended for a period of another year, unless earlier terminated by the parties, the company said.
The deal was concluded after the Swiss Challenge conducted by Meralco in compliance with government’s mandate to conduct competitive selection process in the procurement of its power requirements.
Last month, 1590EC submitted a proposal to Meralco for the supply of 170MW for peaking power in the summer months of 2016 from trading intervals 1000H to 2100H (peak hours) from Mondays to Saturdays, excluding holidays.
Meralco published two invitations for price challenge and invited other power generation firms to submit better tariff proposals. But since the power utility did not receive counteroffers until the last day of the challenge period on January 12, 2016, the agreement was awarded to 1590EC.
Based in Bauang, La Union, 1590EC operates and manages the energy output of its 215 MW Bauang bunker oil-fired diesel engine power plant.