MERALCO POWERGEN CORP. (MGEN) is considering tapping the local capital market through a real estate investment trust (REIT) listing to raise funds and support its projects, its president said.
“It’s one of the options,” MGEN President and Chief Executive Officer Emmanuel V. Rubio said when asked if the company is exploring a REIT listing, speaking to reporters on Sept. 18.
A REIT is a company that owns or operates income-generating real estate assets, with a listing allowing companies to raise funds by selling shares of these assets to the public.
The possible move comes alongside the planned listing of its renewable energy unit MGEN Renewable Energy, Inc. (MGEN Renewables), which is targeted for the second half of 2026. This may involve transferring assets to its affiliate SP New Energy Corp. (SPNEC).
“We’re just beefing up MGEN Renewables with more land… We feel that the right timing is that when we deliver the first phase of Terra Solar — that’s when investors and the public will know that we’re capable of delivering on our promise,” Mr. Rubio said.
MGEN operates a portfolio of power generation assets with a total net sellable capacity of over 5,068 megawatts (MW) from both conventional and renewable sources.
The company expects to double its capacity to 10,346 MW by 2030 through growth projects such as the MTerra Solar Project.
The P200-billion MTerra Solar Project, being developed by a unit of SPNEC, consists of a 3,500-MWp solar facility and a 4,500-megawatt-hour (MWh) battery energy storage system in Nueva Ecija and Bulacan.
Once completed by 2027, the project is expected to supply clean energy to about 2.4 million households and avoid an estimated 4.3 million tons of carbon emissions annually.
Alongside this development, MGEN and SPNEC are also preparing for another project that will house a 1,500-megawatt alternating current (MWac) solar farm and up to 900 MWh of battery energy storage.
“We are looking at land for Terra Solar 2. If that about 450 hectares that we bought in Nueva Ecija will form part of Terra Solar 2, then let it be. The thing is, I don’t think Terra Solar 2 has to be in one location,” Mr. Rubio said.
MGEN, a subsidiary of power distributor Manila Electric Co. (Meralco), is expected to provide higher earnings contribution with the entry of MTerra Solar, the executive said.
“I believe that’s going to go a bit higher. But the goal really is not to be as close as we can to the distribution utility’s earnings, but to make sure that we contribute to the overall sustainability strategy of Meralco,” Mr. Rubio said.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partially 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. — Sheldeen Joy Talavera
