The Manila Electric Company (Meralco) has solidified its reputation for excellence in the first half of 2024, elevating its commitment to innovation and enhancing the value it delivers to customers and stakeholders. Building on a robust distribution network, the Manuel V. Pangilinan-led utility has concluded this period with an impressive performance, reinforcing its role as a key player in advancing towards a sustainable energy future.

“Our plans are well aligned with the country’s pursuit to develop more energy infrastructure and sustainable energy solutions that can promote energy security that can benefit not just consumers in our franchise area, but also cater to the power needs of our unserved and underserved communities,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said.

Meralco is investing heavily in the enhancement of its service capabilities, particularly to bolster the resilience of its distribution network amid the rainy season and the increased risk of severe weather events like Super Typhoon Carina. The company is undertaking significant capital projects essential for maintaining the stability, reliability, and safety of electricity supply to nearly 8 million customers.

“The southwest monsoon enhanced by the onslaught of Super Typhoon Carina brought intense rainfall to several localities within our franchise area, affecting thousands of homes and businesses. The massive flooding did not just trigger service interruptions but also posed threats to safety of our customers and employees. Our committed employees, line crew and personnel worked hand-in-hand to restore power to affected customers at the soonest possible time,” Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho said. 

“The event highlighted the growing importance of strengthening and improving the resiliency of our distribution system for it to withstand the impact of stronger weather disturbances throughout the rainy season, especially with the forecasted La Niña phenomenon. To this end, we assure our customers that we have been proactively conducting upgrading and maintenance activities and will continue to ramp up projects and initiatives that will bolster our distribution network and ensure the availability of sufficient, safe, reliable and least-cost power supply,” he added. 

Anticipating future needs of its customers

Among the major distribution network projects completed by Meralco in the first half of the year are the new gas-insulated switchgear (GIS) Pallocan West Substation in Batangas City; and the expansion of the Eton Centris 115 kV – 34.5 kV GIS Substation in Quezon City. Meralco also completed the development of a new control house with switchgear room at the Novaliches Substation; the replacement of the 34.5 kV Switchgear No. 1 at Meycauayan Substation in Bulacan; and the development of the Napindan 115 kV switching station in Taguig City.

In the first half of the year, Meralco also relocated a total of 597 poles for road widening projects of the Department of Public Works and Highways and various local government units, while a total of 340 poles were relocated for the government’s Build Better More infrastructure program.

Consistent with its approved Power Supply Procurement Plan, Meralco has been conducting separate Competitive Selection Processes (CSPs) to ensure continued delivery of sufficient and least-cost supply. Earlier this year, Meralco completed the CSPs for its 1,200 MW, 1,800 MW, and 400 MW baseload power supply requirements.

For the 1,200 MW CSP, the Energy Regulatory Commission (ERC) issued a Provisional Authority to Meralco and South Premiere Power Corporation, allowing them to start implementing the 15-year Power Supply Agreement (PSA) covering the supply of 910 MW from the Ilijan Natural Gas Plant. The remaining 290-MW capacity continues to be supplied to Meralco under an earlier contract which expires at the end of December 2024.

For the 1,800 MW CSP, three (3) winning bidders shall provide the capacity under distinct 15-year PSAs. An initial 1,200 MW would be supplied by December 2024 supply month, and the remaining 600 MW by May 2025 supply month. With respect to the 400 MW CSP, the resulting PSA is still being reviewed by the ERC.

On top of these PSAs, Meralco also signed a Contract for Sale of Electric Energy with the Power Sector Assets and Liabilities Management Corporation for a capacity of 90 MW to cover its peaking requirements for a period of six months beginning May 26.

As part of its compliance with the Government’s Renewable Portfolio Standards policy that requires distribution utilities to source a portion of their supply from renewable energy (RE), Meralco recently conducted a CSP for its 10-year, 500 MW RE mid-merit power supply requirement beginning March 2025 supply month for the first 350 MW, and the remaining 150 MW beginning March 2026 supply month. The three (3) offers to supply the bid capacity are going through post-qualification evaluation and will be submitted for review and approval of the ERC.

Power generation push

Meralco PowerGen Corporation (MGen), Meralco’s power generation investment arm, also continued to significantly contribute to the Group’s growth story. MGen currently has a total power generation capacity of 2,404 MW (net) through its diversified portfolio in the Philippines and Singapore.

Core to MGen’s strategic drive is its power generation pipeline of projects that includes what would be the largest solar farm in the country. In 2023, MGen Renewable Energy, Inc. (MGreen) acquired equity interest in SP New Energy Corporation, whose cornerstone project is Terra Solar Philippines, Inc.

Terra Solar is developing a 3,500 MWdc utility-scale solar with 4,500 MWhr Battery Energy Storage System in Nueva Ecija and Bulacan, spanning five (5) municipalities and 11 barangays. The company has so far secured over 2,600 hectares of land, of which 1,900 hectares are for Phase 1 of the project. Terra Solar is due to issue a Limited Notice to Proceed to Meralco Industrial Engineering Services Corporation for the construction of the connection assets for the collector substation and transmission line by July 31, 2024.

To further grow its portfolio, MGreen closed an investment agreement with Vena Energy for the development, construction, and operation of a 450-MWac solar project in Bugallon, Pangasinan.

“MGen is continuously on the lookout for investment opportunities in line with its aspiration to be a major player in the power generation sector. To drive sustainable growth, our strategic pursuit is anchored on building a diversified and balanced portfolio that includes utility-scale projects using renewable and advanced technologies,” MGen President and CEO Emmanuel V. Rubio said.

“Through Terra Solar, we are also ramping up pre-development activities for the world’s largest single-site solar farm, with construction slated to begin by the end of this year. We are looking forward to bringing more projects to reality to provide cost-competitive supply for consumers, while also contributing to the development of our host communities across the country. We are working to soon enter the local liquefied natural gas (LNG) space through our investment in the country’s first integrated LNG facility through Chromite Gas Holdings,” Mr. Rubio added.

Next generation technologies

In support of the government’s campaign to accelerate the attainment of energy security, Meralco progressed with its pursuit to explore the adoption of nuclear energy. Under its Filipino Scholars and Interns on Nuclear Engineering (FISSION) program, Meralco recently sent three (3) engineers to Harbin Engineering University in China and two (2) engineers to University of Illinois Urbana-Champaign in the United States.

Upon completion of the academic program, the FISSION scholars will be sent to nuclear technology companies for their internship. Once they return to the Philippines in 2028, they will be reintegrated into Meralco and be assigned to take on a role in its nuclear power generation unit.

The FISSION scholars underwent a meticulous screening process conducted by a selection committee composed of energy industry experts and academe professionals including Dr. Ike Dimayuga from the Atomic Energy of Canada Ltd. and Dr. Aura Matias, former dean of the University of the Philippines College of Engineering, among others.

Meralco Power Academy (MPA), the energy education unit of the distribution utility, manages and oversees the rollout of FISSION which was launched during its Giga Summit on nuclear and sustainable energy and energy efficiency held in September last year.

MPA has, since then, partnered with top-notch universities offering international graduate programs on nuclear engineering which will allow scholars to have access to nuclear energy laboratories and participate in ongoing research on small and micro modular reactors.

“FISSION is a major step in accelerating the education and training of technical and regulatory talents in the highly specialized field of nuclear engineering. This manifests Meralco’s steadfast commitment to continuously developing the workforce in the energy sector,” Aperocho said.

Support to communities

On the social development front, OMF continued its thrust to support communities within and beyond Meralco’s franchise area.

In the first half of 2024 alone, 475 low-income households benefited from the Foundation’s household electrification program, two (2) island public schools in the Calaguas Islands in Vinzons, Camarines Norte, benefiting over 900 students were energized, 630 solar lamps were distributed to indigent families in Butuan City in Agusan del Norte; and fisherfolks, teachers, and soldiers in Pag-asa Island in Palawan, Batanes, and Cagayan; and supported a total of 4,635 families through its disaster response initiatives.

The One for Trees (OFT) program has planted 17,633 new mangroves and trees in reforestation sites in Panay and Cebu as well as in the Del Carmen Mangrove Sanctuary in Siargao Islands, Surigao Del Norte.

To date, the OFT program has nurtured 2,345,803 trees in various reforestation sites nationwide and has provided livelihood for 2,386 tree farmers who are taking care of these trees and are benefiting from the fruits and other products derived from them.

Sustainability wins

Meralco has garnered both international and local acclaim for its sustainability programs and thought leadership. At the 11th Asia-Pacific Stevie Awards, Meralco received a Gold Stevie for its “Meralco Supplier Sustainability Scorecard” in the Building Sustainable Supply Chains category. The Meralco Power Academy’s “Giga Summit on Sustainable Energy, Energy Efficiency, and Future Grid” won Gold Stevie for Thought Leadership Campaign of the Year. The “Race to Zero Waste Program” earned a Silver Stevie in the Reuse and Recycle category, and Meralco First Vice President and Chief Sustainability Officer Raymond B. Ravelo was awarded a Bronze Stevie as Climate Hero of the Year.

Meralco was also recognized by the Philippine Business Coalition for Women Empowerment for successfully completing the Gender Equality Assessment Results and Strategies and diligently implementing its Workplace Gender Equality action plans under the Gender Diversity and Inclusion Program #Mbrace.

“With the steady growth of the economy, we are confident that Meralco will maintain its strong performance throughout the year. Beyond our core distribution business, we continue to invest in additional generation capacity to address, if not eliminate, supply insufficiency in the country’s power grid and support the growing demand for power,” Pangilinan said.

“As an active partner in nation-building, we are committed to contributing to infrastructure development and economic growth and supporting policies that attract investments and create jobs.”