Meralco Continues to Deliver Stakeholder Value and Reliable Service to Customers

As the year draws to a close, the Manila Electric Company (Meralco) continues to exhibit exceptional service, bolstering its commitment to innovation to enhance value for its customers and stakeholders.

The Manuel V. Pangilinan-led distribution utility closed the first nine months of 2024 with an impressive operational and financial performance, further solidifying its role as a leader in the energy industry and as an economic growth enabler.

Continuing initiatives to support customers’ needs

To ensure delivery of sufficient, reliable, and stable service at the least possible cost, Meralco continuously implements distribution network upgrades and strategic sourcing activities.

Among the major distribution network projects completed by Meralco in the third quarter of the year are the new gas-insulated switchgear (GIS) in a first full indoor substation at Elisco Road in San Joaquin, Pasig City, the Milagrosa Switching Station in Carmelray Industrial Park II in Calamba City, Laguna, and a third 300 MVA power transformer at the Duhat Delivery Point Substation in Bocaue, Bulacan.

Through its pole relocation program, a total of 924 poles were relocated for road widening projects of the Department of Public Works and Highways and various Local Government Units (LGUs) while a total of 571 poles were relocated for the government’s Build Better More infrastructure program.

“Despite the challenges we have encountered so far this year, Meralco has been relentless in anticipating the needs of our customers and investing in projects that would be beneficial for them in the long run,” Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho said.

Consistent with its Power Supply Procurement Plan approved by the Department of Energy (DOE), Meralco conducted the competitive selection process (CSP) for 600-MW baseload and 400-MW mid-merit supply requirements.

Meralco secured the best bids for the 600 MW baseload requirement from two (2) generation companies, which offered a levelized cost of electricity (LCOE) inclusive of line rental and Value Added Tax (VAT) of P5.6015 per kWh and P5.7392 per kWh.

Meanwhile, the sole winning bidder of the CSP for the 400-MW mid-merit requirement offered an LCOE of P7.6816 per kWh, including line rental and VAT. These 15-year PSAs from the two (2) CSPs shall be submitted to the Energy Regulatory Commission for review and approval to be implemented beginning August 26, 2025.

Aperocho added that Meralco is also working to ensure that the company is prepared to meet the supply needs of customers without unnecessarily exposing them to volatile energy prices.

“To this end, our efforts are centered on competitive biddings, which historically yielded lowest rates that translate into savings for our millions of customers. While there are still a lot of things to be done, our customers can be assured that Meralco will remain proactive in working with the energy industry players, and the regulator, in promoting consumer welfare,” he said.

Power generation business forges ahead

Meralco PowerGen Corporation (MGEN) the power generation investment arm of Meralco, was also a significant contributor to the distribution utility’s continued growth.

As of end-September, MGEN had a combined power generation capacity of 2,417 MW (net) in its diversified power generation portfolio in the Philippines and Singapore. During the period, MGEN delivered 11,556 GWh of energy, 3% more compared with the same period last year.

Terra Solar Philippines, Inc., MGEN’s cornerstone renewable energy project through SP New Energy Corporation (SPNEC), has secured green lane certification from the Board of Investments that entitles the project to streamlined processing alongside expedited approval of permits. This came on the heels of Terra Solar’s certification as an Energy Project of National Significance from the Department of Energy in July 2024.

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.

In September 2024, SPNEC announced the strategic entry of UK-based Actis through Actis Rubyred (Singapore) Pte. Ltd., which is set to acquire a 40% equity stake in Terra Solar for a total consideration of approximately US$ 600 million – by far, the largest foreign direct investment for a greenfield infrastructure project in the Philippines.

With the development activities of the project in full swing, Terra Solar entered an engineering, procurement, and construction contract with Meralco Industrial Engineering Services Corporation (MIESCOR) covering the connection assets that will link the power plant to the national grid.

These milestones are expected to positively impact the timely construction of the project, with the first phase involving 2,500 MW to be delivered on-track by the first quarter of 2026 – and Phase 2, a year later.

Aside from Terra Solar, power plants of MGEN Renewable Energy, Inc. (MGreen) operated efficiently and collectively maintained an impressive 97% average plant availability. The renewable energy arm of MGEN delivered a total of 483 GWh of clean energy, its highest generation of solar power to date – a 90% increase from 254 GWh the previous year, which is expected to grow further as new solar plants start operating.

“As we work on progressing all our projects in the pipeline, we also strive to maximize the efficiency of our current power generation assets. We expect to sustain this momentum as we realize gains from our energy portfolio,” MGEN President and Chief Executive Officer Emmanuel V. Rubio said.

Still in line with Meralco’s commitment to pursuing energy security, Meralco recently entered into partnerships with South Korean firms to study the adoption of nuclear energy in the Philippines.

Meralco signed a memorandum of understanding with Doosan Enerbility Co. Ltd., to study the use of small modular reactors (SMRs) to help meet the country’s growing energy demand. Meralco also signed a separate MOU with Samsung C&T Corp. Engineering & Construction Group (Samsung C&T), for the sharing and discussion of technical design and capabilities of nuclear technology.

“Our recent partnerships with reputable South Korean firms to explore nuclear energy projects in the Philippines also reflect our commitment to the Government’s emphasis on sustainability,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said.

Social development initiatives that benefit Filipinos across the country

Alongside its efforts to grow its business, Meralco remains keen in advancing sustainability and implementing social development initiatives.

Under the flagship One for Trees environmental program of One Meralco Foundation (OMF), Meralco in September launched the “Greening the Meralco Operating Center” initiative that aims to transform its Pasig City headquarters into “the lungs of the Ortigas business district.” In partnership with the Communications Electrical Equipment & Supply Co., Inc. (Celeasco), Meralco planted over a thousand seedlings to enhance urban green spaces in its compound.

As of end-September, the One for Trees program now covers a total of 2,400,803 trees in different parts of the Philippines.

As a testament to its steadfast commitment to support underserved communities, OMF’s social development programs benefitted 7,059 families in the third quarter of 2024 alone. This includes energization of low-income households in parts of Metro Manila, Bulacan, Laguna, Batangas, and Quezon, and provision of solar lamps to indigenous families from a mountain community in Puerto Princesa City, Palawan.

To support government’s national security efforts, OMF also provided solar lamps to soldiers from the Philippine Marine Corps - Marine Battalion Landing Team-9, which is assigned to secure the Kalayaan Island Group near the West Philippine Sea. On the disaster response front, OMF continued its immediate distribution of relief packs to families affected by weather disturbances and fire victims in different parts of the country.

In helping promote quality education, OMF along with Meralco Employees Fund for Charity, Inc., MGEN, MPower, and Vantage Energy, continued with the employee-led “Balik Eskwela” program which benefitted more than 1,200 kindergarten students.

OMF has also undertaken a host of initiatives in partnership with MGEN, which has been expanding its footprint and actively supporting communities across the country. This includes the distribution of 150 home solar kits to residents of Sitio Tamale in Bongabon, Nueva Ecija which is an area outside of Meralco’s service area that has no access to electricity. To promote public health, OMF supported MGEN’s Adopt-a-Health Center Program that benefitted 35 health centers and clinics in its adopted villages in Iloilo City, Nabas and New Washington, Aklan, and Toledo City, Cebu.

Sustainability wins and demonstration of excellence

Aligned with its long-term sustainability strategy, Meralco continues to heighten its environmental, social, and governance (ESG) performance.

The distribution utility recently improved its ESG rating with corporate governance research and analytics firm Sustainalytics — landing in the top 39% of the global electric utilities industry with its strong management of material ESG risk areas such as carbon emissions, community relations, and business ethics and governance.

For the fourth consecutive year, Meralco was likewise recognized in the FTSE4Good Index Series, which tracks global sustainability performance across key ESG areas, including risk management, labor standards, corporate governance, and anti-corruption. Meralco is the only Philippine electric utility company that is part of the index.

As Meralco continues to advance programs that benefit its stakeholders, the company has garnered numerous accolades from prestigious organizations for reflecting sustained excellence in business performance, sustainability, social development, human resource management, digital transformation, customer centricity, and corporate governance.

Among the recent feted honors are eight (8) Stevies at the 2024 International Business Awards. For the second consecutive year, Meralco First Vice President and Chief Sustainability Officer Raymond B. Ravelo took home the Gold Stevie Award for Sustainability Hero of the Year in Asia, Australia, and New Zealand.

OMF President Jeffrey O. Tarayao was meanwhile recognized with a Silver Stevie under the Thought Leader of the Year for Non-Profit or Government Category.

Meralco also garnered two (2) more Silver Stevie Awards for its sustainability and corporate social responsibility efforts—the company’s sustainability campaign “Powering the Good Life”, and OMF’s “Leading Energy for Productivity in Underprivileged Communities in the Philippines” which championed inclusive development in geographically isolated and disadvantaged communities.

Meralco’s human resource and stakeholder management strategies, along with its digital transformation efforts, earned four Bronze Stevie Awards. These include the company’s employee engagement strategy “Nurturing a Vibrant Workforce: Meralco’s Approach to Engagement and Retention,” the diversity and inclusion program #Mbrace, the external stakeholder recognition program “The 9th Meralco Luminaries: Brighter New World”, and “Lighting the Way: Meralco’s Customer Experience Dashboard for Sales Analysis” which was recognized for its innovative use of competitive intelligence to address evolving customer needs.

“We remain optimistic about the continued expansion of the country’s economy under the leadership and tutelage of President Ferdinand Marcos, Jr., with full-year economic growth forecasts hovering around 6%, and the potential to outpace other Southeast Asian nations. Easing inflation pressures and sustained spending on major infrastructure projects which Meralco actively supports and would help,” Pangilinan said.