MANILA ELECTRIC CO. (Meralco) through its power generation arm Meralco PowerGen Corp. (MGen) is allocating P18 billion for renewable energy expansion, the power distributor unit said on Sunday.
“We will continue to work with the energy industry, government, and other pertinent stakeholders to help further accelerate the country’s energy transition as we aggressively pursue more renewable energy projects,” Jaime T. Azurin, president and chief executive officer of MGen, said in a statement.
The investment will help fast-track Meralco’s long-term sustainability aspiration to transition to clean energy, MGen said.
It will cover about 2 gigawatts (GW) of gross renewable energy capacity from solar and wind, the company said, adding that it intends to build the renewable energy capacity by 2030 along with its partners.
MGen said its renewable energy unit MGen Renewable Energy, Inc. (MGreen) will hasten its target of about 1,500 MW or 1.5 GW of renewable energy capacity with investments in additional and larger renewables projects like battery energy storage systems.
Mr. Azurin said more projects using renewable energy are under development and assessment.
“This is in line with Meralco’s long-term sustainability strategy to embark on a just, affordable, and orderly transition to clean energy,” he said.
The aspiration of the Meralco group includes a target of reducing its direct emissions by about 20% by 2030 as MGen strives to fully phase out coal by 2050.
To date, MGreen’s portfolio includes the 55-MW-alternating current (MWac) BulacanSol solar plant in San Miguel, Bulacan in partnership with Powersource Energy Holdings Corp.; and the 68-MWac solar farm in Ilocos Norte of Nuevo Solar Energy Corp., a joint venture between MGreen and Vena Energy.
MGreen’s renewable energy portfolio also includes the 75-MWac solar farm of PH Renewables, Inc. (PHRI) with Mitsui & Co.’s Mit-Renewables Power Corp. in Baras, Rizal.
The renewable energy unit of MGen said PHRI had just completed commissioning tests for the first phase of its project, which involves 67.5-MWac energy capacity.
The first phase is expected to commence operations by this month, while the second phase is expected to be operational by at least the first semester of 2024.
Two solar projects — the 49-MWac solar plant in Cordon, Isabela, and the 18.75-MWac solar plant in Bongabon, Nueva Ecija — are among the winning bidders in the second round of the government’s green energy auction program, which provides an additional market for RE through competitive electronic bidding of RE capacities.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
