Manila Electric Company (Meralco) is seeking regulatory approval for a 20-year power supply agreement (PSA) with First Quezon Biogas Corp. (FQBC) as the company taps farm waste to power homes.

The country’s largest power distributor said Monday the deal covers 1.25 megawatts (MW) of renewable energy from FQBC’s 1.4 MW biogas facility in Candelaria, Quezon, which uses anaerobic digestion to convert agricultural waste into clean energy.

Aside from generating clean power, the facility helps reduce greenhouse gas emissions by sustainably managing farm waste and manure.

“We hope that the signing of the PSA would encourage more investment in biogas to help local communities and to further develop this type of RE technology," Meralco Senior Vice President and Head of Regulatory Management Jose Ronald V. Valles said.

"Per procedure, the PSA will now be submitted to the Energy Regulatory Commission for review and approval,” he added.

The PSA is set to take effect on 26 June 2026 and supports the Department of Energy’s Renewable Portfolio Standards (RPS), which requires power suppliers to gradually increase their renewable energy sourcing.

The RPS mandate rises by 2.52 percent annually, with the government aiming for a 35 percent renewable energy share in the energy mix by 2030 and 50 percent by 2040.

Meralco has so far secured 1,535 MW of renewable capacity from various suppliers, exceeding its 1,500 MW target. The company expects renewables to make up 26 percent of its supply portfolio by 2030.