Integrated energy company Semirara Mining and Power Corporation’s retail electricity unit Sem-Calaca RES Corp. (SCRC) has signed a 4-megawatt retail supply contract with a Luzon-based steel manufacturing firm.
The supply contract sealed in September this year will last for 15 more months.
The contract authorizes SMPC to sell, broker, market or aggregate electricity to the “contestable” market such as a retail electricity supplier (RES).
Since January this year, the requirement for the 12-month average peak demand to qualify as a contestable customer was lowered from 1 MW to 750 kW.
“We expect a challenging 2019 for the local power industry because of increasing power supply in the market and the growing competition for power contracts. With the increasing contestable customers switching to retail suppliers, the RES market could be a bright spot for SMPC,” SMPC president and chief operating officer Victor Consunji was quoted in a regulatory filing.
“We believe SCRC is capable of competing with the other RES players. We can provide customers with customized solutions to help manage their electricity costs,” he added.
Consunji also said they are also in talks with a number of contestable clients for an aggregate volume of 150 MW, with negotiations already in various stages of completion.
The company was granted a license to operate as an RES by the Energy Regulatory Commission in 2016.
A subsidiary of DMCI Holdings, Inc., SCRC secures its supply from affiliate power plants SCPC and Southwest Luzon Power Generation Corporation, other independent power generators and from the Wholesale Electricity Spot Market.