MERALCO POWERGEN Corp. (MGEN), the power generation arm of Manila Electric Co. (Meralco), is exploring options to secure offtake for the capacity of its planned 1,200-megawatt (MW) coal-fired power project in Quezon province as early as next year.
Speaking to reporters last week, MGEN President and Chief Executive Officer Emmanuel V. Rubio said the company has begun preparing to participate either in a competitive selection process (CSP) or in a baseload capacity auction.
“We’re coordinating with the DoE (Department of Energy) the best way to actually get this capacity,” Mr. Rubio said.
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, through its subsidiary Atimonan One Energy, Inc., plans to develop a 1,200-MW ultra-supercritical pulverized coal-fired power plant in Quezon.
The Philippine government in 2020 stopped accepting new proposals for coal-fired power projects to improve energy sustainability, reliability, and flexibility.
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,” Mr. Rubio said.
As of July, MGEN’s total net saleable capacity stood at 5,068 MW, which the company expects to double over the next five years through ongoing growth projects, including Atimonan.
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., holds an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
