The power generation arm of Manila Electric Company (Meralco) is set to increase its renewable energy capacity installations to 2,000 megawatts (2 GW), with a committed investment of P18 billion.
According to the company’s media statement, this investment will facilitate the development of over 2 GW of gross RE capacity from solar and wind sources. This initiative is a collaborative effort between the company and its partners, with the goal of achieving these installations by 2030.
Initially, MGen Renewable Energy Inc. (MGreen), the RE development platform of Meralco PowerGen Corporation (MGen), had planned to develop 1,500 MW of RE projects over five years.
However, due to the heightened Renewable Portfolio Standards (RPS) mandated by the government, MGreen has decided to escalate its RE development by an additional 500 MW. The RPS requires power utilities to acquire a specified percentage of their supply from RE facilities, thereby creating a more favorable market for investors entering the RE sector.
MGen’s President and CEO, Jaime T. Azurin, expressed the company’s commitment to collaborating with the energy industry, government, and stakeholders to accelerate the country’s transition to renewable energy.
He also highlighted that various projects are currently in development and assessment, aligning with Meralco’s aim to reduce direct emissions by 20% by 2030 and achieve a coal-free status by 2050.
Among Meralco’s ongoing projects are a 49 MWac solar plant in Cordon, Isabela, as well as an 18.75 MWac solar plant in Bongabon, Nueva Ecija. These projects have secured 20-year power supply agreements (PSAs) through the green energy auction by the Department of Energy.
Meralco’s strategic investments in RE capacity fall in line with its long-term sustainability strategy to transition towards clean energy in a just, affordable, and orderly manner.
The company’s portfolio already includes several commercially operational RE assets, such as the 55 MWac BulacanSol solar farm, the 68MWac solar plant in Currimao, Ilocos Norte, and the 75 MWac solar facility in Baras, Rizal, owned by PH Renewables Inc.
The first phase of the Rizal solar farm, totalling 67.5 MWac, is expected to be operational by the middle of this month, with the second phase planned for the middle of the following year. As the Philippines government emphasizes decarbonization in its energy planning, the country’s power industry is clearly moving towards a development race focused on renewable energy sources.