Through the partnership, Meralco is expanding its presence into mini-hydropower development, a move that is expected to generate over $40m in annual savings.
The proposed hydropower plants are expected to become operational by 2019.
When operational, the projects will use run-of-river resources to generate clean electricity and reduce CO2 emissions.
REDC CEO Dexter Tiu was quoted by Rappler as saying: "Our wide experience in working with sustainable energy sources has allowed us to maximize its potential through our long-term approach of using best of breed international technologies combined with local excellence in deployments."
Currently, REDC has 100MW of mini-hydropower projects under development in Quezon, Camarines Sur, Bukidnon, and other provinces which represent a total investment of around $400m.
It recently broke ground on its Rangas mini-hydropower project in Camarines Sur, with plans to begin construction on the Upper Labayat project in Quezon in the first quarter of 2016.
The REDC-Meralco partnership will benefit from the feed-in-tariff scheme mandated by the Renewable Energy Act of 2008, which provides a guaranteed payments on a fixed per kilowatt-hour for energy generated from sources such as solar, wind, ocean, hydropower and biomass.
