Meralco brings transformative value to customers, communities, and the country
THE Manila Electric Company (Meralco) has remained dedicated to pursuing long-term initiatives that drive progress and bring transformative change to its stakeholders to fulfill its mandate to deliver sufficient, reliable, and stable electricity service at the least possible cost to customers.
Meralco brings transformative value to customers, communities, and the country
As it proactively implements strategic sourcing activities and distribution network upgrades, Meralco completed in the first quarter of the year Competitive Selection Process for 15-year Power Supply Agreements covering 3,000 MW baseload requirements, and a 400-MW baseload interim power supply agreement effective until February 2025.
Beyond its sourcing initiatives, Meralco also continued investing in the expansion and upgrading of its distribution network facilities to improve service reliability and operational flexibility.
Amongst the projects completed in the first quarter of 2024 are the replacement of a 100 MVA Power Transformer in Taguig City; the installation of an 83 MVA Power Transformer at Abubot Substation in Dasmariñas City in Cavite; the uprating of the Pamplona-San Pedro 115 kV Line that runs from Las Piñas City to San Pedro City in Laguna; and reliability improvement of the Malinta 115 kV Substation in Valenzuela City.
"In the month of April this year, we already reached record peak demand in the Meralco franchise area, which exceeded 9,000 MW. With Red and Yellow Alerts hoisted over the Luzon grid several times last April, we anticipate a challenging power supply situation throughout this dry season, coincidental with the El Niño phenomenon," Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho said. "Nonetheless, we remain vigilant as we work with energy industry players in implementing demand-side management programs to help lessen the strain on the power grid and continuously deliver stable and reliable service to consumers," Mr. Aperocho added.
Beyond distribution of electricity
Core to Meralco's value creation story is the thrust to pursue power generation projects through Meralco PowerGen Corporation (MGen) in a bid to contribute to the Philippines' long-term energy security. Through MGen Renewable Energy, Inc. (MGreen), MGen has also progressed its vision to become a leader in the renewable energy space through its investment in what would be one of the world's largest single-site solar farm in the Philippines. Following its acquisition of a majority stake in SP New Energy Corporation (SPNEC) in 2023, MGreen further raised its stake in the listed renewable energy company to 53.7% from 50.5% with the acquisition of additional 2.17 billion SPNEC shares last January. MGreen has so far invested Pesos 18.4 billion in SPNEC. A cornerstone project under SPNEC is Terra Solar Philippines, Inc., which involves a 3.5-GWp solar power plant with a 4,500-MWhr battery energy storage system. The issuance of the Notice-to-Proceed for the construction of the initial 2.5-GWp of the project is targeted before the end of 2024. To further grow its renewable energy portfolio, MGreen in the first quarter of this year started construction of two new solar plants: Greentech Solar Energy, Inc.'s 18.75 MWac solar plant in Bongabon, Nueva Ecija and Greenergy for Global, Inc.'s 49 MWac solar farm in Cordon, Isabela. Both are scheduled to start commercial operations in the first quarter of 2025. Beyond renewables, MGen supports the government's drive for a cleaner and more sustainable future through liquefied natural gas (LNG) investments. MGen is set to acquire an attributable 40.2% interest in the country's first and most expansive integrated LNG facility in Batangas under the landmark agreement signed in March 2024. In partnership with US-based Ultra Safe Nuclear Corporation (USNC), Meralco completed the pre-feasibility study within the Meralco franchise area for the possible deployment of Micro Modular Reactor (MMR) nuclear fuel technologies. Meralco and USNC plan to proceed with the full feasibility study that will cover site-specific assessment and detailed analysis of local and regulatory landscapes that are crucial to the deployment of nuclear technologies. "Our growth prospects go beyond creating value for our shareholders. The opportunities we are pursuing are always anchored on the commitment to support economic development and contribute to uplifting the lives and welfare of more Filipinos," Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said. "As we continue to deliver stable and reliable service to our customers, we reiterate our pursuit to bring in projects of scale that will boost available generation capacity which we direly need to ensure not just the immediate, but the long-term energy security of the country. This year, along with our partner and in close coordination with the Government, we hope to proceed with the full feasibility study on the possible adoption of nuclear energy. Similarly, we will endeavor to implement more sustainable initiatives to cater to more underserved communities in the country," Mr. Pangilinan concluded.