Meralco power firms maximize coal, solar

MGEN, through its subsidiary Atimonan One Energy, Inc., plans to develop a 1,200-MW ultra-supercritical pulverized coal-fired power plant in Quezon.

By next year, the power generation arm of Manila Electric Co. (Meralco), plans to secure offtake for the capacity of its planned 1,200-megawatt (MW) coal-fired power project in Quezon province.

MGEN President and Chief Executive Officer Emmanuel V. Rubio said the company has begun preparations to participate either in a competitive selection process (CSP) or in a baseload capacity auction.

The government stopped accepting new proposals for coal-fired power projects to improve energy sustainability, reliability, and flexibility.  This policy decision was made in 2020.

The Atimonan project, however, obtained a certification confirming that it remains outside the coverage of the moratorium, allowing it to continue securing the remaining permits.

MGEN intends to build the facility using high-efficiency, low-emission (HELE) technology, which operates at higher temperatures and pressures to maximize energy output while reducing fuel consumption.

Once completed, the plant is expected to generate sufficient electricity to supply at least five million households.

“We’re expecting that the delivery of this unit is February 2030,” Rubio said, adding that they are coordinating with the Department of Energy on the best way to actually get the capacity.

Under current rules, power suppliers offer capacity through CSPs conducted by distribution utilities via a transparent, least-cost procurement mechanism.

Auctions, meanwhile, are market-based processes designed to secure offtake agreements for power supply.

MGEN’s total net salable capacity is currently 5,068 MW, which the company expects to double over the next five years through ongoing growth projects, including Atimonan.

Big plans for MGreen

Manuel V. Pangilinan, chairman and CEO of Manila Electric Company (Meralco), said the firm’s long-term objective is to make MGen Renewable Energy Inc. (MGreen) the country’s flagship entity for renewable projects, handling solar and wind facilities that bridge the supply gap in power.

“We do have existing renewables projects that are operational and are being built outside of Terra Solar. My suggestion to Meralco is let’s inject [those] into SPNEC so it becomes a bigger entity, and possibly make it profitable in 2026,” Pangilinan said.

As this developed, the planned backdoor listing for MGreen may have to wait until 2027, as the company would like to consolidate energy assets and finish its flagship project first to strengthen business viability.

MGreen is gearing up to become a publicly listed company through a backdoor listing via SP New Energy Corp. (SPNEC), where it owns a 69-percent share.

Pangilinan said SPNEC’s biggest project, the P200-billion Terra Solar, would start energization in the second half of 2026. He believes it would be best to wait for Terra Solar to be activated so MGreen can see how profitable the project is.

“The re-IPO of SPNEC through MGreen cannot be done until 2027 at the earliest because Terra Solar will not start to energize until August to November of 2026. We need to see the revenue of Terra Solar enter the books of SPNEC and MGreen before we are able to relaunch IPO in 2027,” Pangilinan said.

Meralco is preparing to transfer its renewable projects into SPNEC to strengthen its financial standing and make it profitable by 2026.

MGreen can then undertake a share swap to prepare for its backdoor listing via SPNEC.

Terra Solar, which traverses 3,500 hectares of land across Nueva Ecija and Bulacan, is capable of delivering 3,500 megawatts of solar power to the Luzon grid.

It is equipped with a 4,500-MW battery energy storage, making it the world’s largest solar and battery facility.

SPNEC is also planning to build potentially in Southern Tagalog the second farm of Terra Solar, estimated to generate about 1,500 MW.