PowerSource's proposed power plant is located in Barangay Labne, San Miguel, Bulacan or in an alternative sit within Meralco's franchise area. The contract covers 20 years, with the start of commercial operations is set on August 2018. Meralco issued the second price challenge to the offer of Solar Philippines Tanauan Corp. for 50 MW at P5.39 per kWh, also subject to escalation and foreign exchange adjustment. Solar Philippines is putting up power plants with a capacity of 25 MW each in Batangas and Cavite provinces. Solar Philippines offered to supply Meralco starting in February 2017 for 20 years. "Any offer made by the price challenge should be under the same terms and conditions of the power supply agreement provided by Meralco, except for the financial proposal," the power distributor said. Meralco said it would declare a failure the price challenge if it did not receive any expression of interest on Oct. 3.