In a bid to build world-class, resilient, and future-ready ecozones nationwide, MVP Group’s premier power distributor, Meralco, and the Philippine Economic Zone Authority (PEZA) have joined forces to elevate power reliability within the country’s ecozones.

On 3 December, PEZA director general Tereso Panga and Meralco chairman and CEO Manuel Pangilinan formalized a strategic partnership through a memorandum of understanding (MoU) at the Meralco head office.

Successful collaboration

This, following the successful collaboration that strengthened power systems in the Cavite Economic Zone and enabled new and expansion locator company projects.

Said MoU marks another milestone toward building world-class, resilient, and future-ready ecozones nationwide.

Under the MoU, Meralco may design, build, own, and operate power distribution projects within PEZA-managed ecozones — subject to necessary permits, approvals, and definitive agreements, a framework that reinforces PEZA’s commitment to delivering reliable and future-ready infrastructure essential for advanced manufacturing, data centers, logistics hubs, and other high-value industries.

The agreement also supports PEZA’s push for more eco-industrial park models — low-carbon, energy-efficient, and aligned with circularity and ESG goals.

With Meralco’s track record in power reliability and PEZA’s growing network of 433 ecozones and over 4,000 export-oriented locator companies, this partnership sets the stage for stronger, smarter, and more sustainable energy systems in the years ahead.

As new ecozones continue to rise across the country — from manufacturing complexes to digital investment hubs, including the Baguio City Economic Zone and upcoming flagship developments such as the Pantao Ecozone in Albay and the Palawan Mega-Ecozone — Meralco’s early involvement will be crucial in powering the next generation of smart eco-industrial zones.

Smart, sustainable ecozones

“PEZA envisions ecozones that are smart, sustainable, and globally competitive — and to achieve this, power reliability and access to renewable energy sources are non-negotiable. With this partnership, we are confident that PEZA and Meralco will strengthen our ecozone system and ensure the power needs of our locators,” Panga said.

Pursuant to the PEZA and CREATE MORE laws, PEZA is authorized to register embedded power, water, telecom, and environmental management facilities with entitlement to fiscal and non-fiscal incentives.

By promoting distributed energy systems, PEZA can significantly lower power costs, particularly in ecozones with embedded power generation and distribution.

Moreover, a straightforward tariff design — free from stranded costs — enables competitive power rates that can approximate subsidized electricity prices in ASEAN, thereby enhancing the country’s investment competitiveness.

Perception of high power costs

The provision of the CREATE MORE law addresses the long-standing perception of high electricity costs in the Philippines by ensuring that PEZA’s benefits package remains at par with or even more advantageous than those offered in neighboring countries.

Public–private partnerships of this nature foster a more conducive environment for attracting investments, consistent with the whole-of-nation approach.

“With this partnership, PEZA will be able to adequately meet the power requirements of manufacturing investors within the public ecozones that the agency manages. At present, the single largest electricity demand in our public zones reaches about 80 MW per month,” Panga said.