The Manila Electric Company (Meralco) isn’t just about distributing electricity to its residential, commercial and industrial customers, it also offers value added energy solutions and services while addressing the challenges posed by climate change.
The country’s largest power distribution utility firm is setting aside over P100 billion in capital expenditures (capex) to fund its sustainability programs until 2030.
Under its long-term sustainability strategy (LTSS), Meralco aims to reduce total carbon emissions by 20 percent by 2030. The amount will fund its green efforts, including projects involving grid reliability, system loss reduction, energy efficiency solutions, and electric vehicle (EV) fleets and infrastructure expansion, among others.
“With sustainability deeply embedded in Meralco’s operations and long-term plans, we are proud to commit over P100 billion in capital expenditures to initiatives that not only enhance our infrastructure but also align with the government’s vision for a sustainable future,” Meralco executive vice president and chief operating officer Ronnie Aperocho said.
Twin goals
CORE to its LTSS are twin commitments to secure 1,500 megawatts (MW) of renewable energy (RE) supply contracts and to develop 1,500 megawatts (MW) of attributable green energy generation capacity through its RE unit MGen Renewable Energy Inc. (MGreen).
MGreen Government Relations and Industry Affairs First Vice President Philip Dasalla said the company is ramping up its renewables buildout to accelerate the development of RE projects, particularly solar and wind.
“As part of One Meralco’s long-term sustainability agenda and as we heed to the call of the government for the attainment of 35 percent renewable energy target mix by 2030, we will ensure, together with our dedicated partners, to efficiently serve the country’s growing power needs with cleaner energy in cost-competitive manner,” he said.
MGreen currently has three operating solar plants in Luzon, with a total gross capacity of 198 MWac.
These are the PowerSource First Bulacan Solar Inc.’s (PFBSI) 55 MWac solar plant in San Miguel, Bulacan in partnership with PowerSource Energy Holdings Corporation; the Nuevo Solar Energy Corp.’s (NSEC) 68 MWac solar farm in Currimao, Ilocos Norte with Vena Energy’s Pasuquin Energy Holdings Inc., and the PH Renewables, Inc.’s (PHRI) 75 MWac solar farm in Baras, Rizal with Mitsui & Co.’s MitRenewables Power Corporation.
There are two more solar power projects in the pipeline, signifying a strategic move by MGreen to expand its solar power capacity and contribute significantly to the nation’s RE aspirations.
These are the 49 MWac solar plant in Cordon, Isabela, and the 18.75 MWac solar plant in Bongabon, Nueva Ecija—both of which are among the winning bidders in the Department of Energy’s (DOE) second round of Green Energy Auction Program (GEAP).
“Our target is 1,500 MW of RE by 2030, but it can be earlier. It depends on when the other projects will start,” Meralco PowerGen Corp. (MGen) chief operating officer Dominador Camu Jr. earlier said. “But we have a lot more that will meet at least 1,500 MW,” he added.
MGen, the power generation arm of Meralco, has earmarked P18 billion to accelerate its RE buildout. The investment will cover over two gigawatts of gross RE capacity from solar and wind that the company and will also include battery energy storage systems (BESS).
In the near future, MGreen is set to develop 3,500MW solar facilities with an accompanying 4,000 MW hours of BESS. This will be possible following MGreen’s P15.9-billion investment in SP New Energy Corp. (SPNEC), the developer of the planned solar farm and energy storage, which would be the world’s largest single contracted solar project.
RE provider of choice
ASIDE from its RE unit, Meralco also has a solar energy arm, MSpectrum, which offers tailor-fit solar energy solutions for industrial, commercial, and residential customers through an in-depth understanding of energy consumption behaviors and strategic partnerships with world-class technology partners.
“We strive to be the renewable energy solution provider of choice in making sure that our customers benefit from efficient, reliable, and safe solar installations, the latest, and most up-to-date solar technology, and international reach,” MSpectrum Commercial Services Head Rodolfo Lim said.
MSpectrum recently turned over a 32-kilowatt peak (kWp) solar panel system with a battery energy storage to Rima Corporation to power its Taguig Warehouse 1. This will reduce its carbon footprint by 30 tonnes, equivalent to 1,350 mature trees planted.
While the majority of MSpectrum’s existing portfolio is located within the Meralco franchise area, it is targeting to expand its footprint in the Visayas and Mindanao.
“The country’s abundant sunlight and favorable regulatory environment position it as a prime location for solar investments,” it said. “The continued growth in solar capacity, combined with advancements in technology and decreasing costs, will contribute to the industry’s expansion,” MSpectrum said.
Nuclear power for sustainable energy
PART of Meralco’s LTSS is its adoption of next generation clean technologies, including nuclear energy. Meralco will accelerate its shift to green power as it assesses and adopts next-generation clean technologies such as MMR (micro-modular reactor ) energy systems.
In November 2023, Meralco and US-based Ultra Safe Nuclear Corp. (USNC) signed a cooperative agreement to conduct a four-month pre-friability study on the potential deployment of micro modular reactor energy systems in the Philippines in support of the country’s push to develop nuclear energy.
“This year, we expect to move forward with our long-term goal of achieving sustainable energy security through our investments in utility scale power generation projects, including exploring the possible adoption of nuclear energy in the country,” Meralco chairman and chief executive officer Manuel V. Pangilinan said.
The company recently launched the Filipino Scholars and Interns on Nuclear Engineering (FISSION) program in a bid to develop the Philippines’ technical and regulatory talent pipeline through education and training in the highly specialized field of nuclear engineering.
The Department of Energy (DOE) has already included nuclear energy as part of the 2023 to 2050 Philippine Energy Plan (PEP). It will also form a nuclear committee to help achieve its target of 2,400 MW of nuclear capacity as early as 2032.
“We will support the target. Hopefully, the DOE can achieve that target,” Aperocho said.
Inclusive progress
PANGILINAN said Meralco’s mission goes beyond delivering innovative products and quality services to Filipino consumers. Meralco’s foundation arm pursues solar electrification initiatives targeting underserved households, rural health centers, water access projects, and livelihood programs.
“Our strategic expansion and social development initiatives have always been anchored on our firm commitment to create additional and transformative value to our stakeholders, power the country’s economic progress, and contribute further to the advancement of the government’s socio-economic agenda,” Pangilinan said.
Through One Meralco Foundation (OMF), Meralco stayed true to its mission of spreading the light to the farthest areas in the country as it energized 75,000th low-income household and its 300th off-grid public school in the province of Sultan Kudarat for the first time, powering three schools that cater to indigenous people.
Also bringing positive impact in the lives of more marginalized Filipinos as OMF’s water access, livelihood and rural health centers electrification which have been benefitting families, coffee farmers, and more off-grid communities.
By the end of 2023, OMF has expanded its One for Trees environmental program, nurturing 2.3 million trees in 35 reforestation sites in the country, with 2,359 tree farmers and their families directly benefiting by improving the economic welfare and social well-being of the people who maintain these trees.
“As we pursue our decarbonization strategies, we envision a thriving society with access to education, clean water, quality healthcare, dignified livelihoods, and disaster preparedness—all in alignment with the United Nations’ Sustainable Development Goals (UN SDGs),” said Pangilinan.
Image credits: Patrick Roque/Wikimedia Commons Commons