MGen eyes Toledo coal build within Q1

Meralco PowerGen Corp. (MGEN), the generation arm of the Manila Electric Co., is setting up to start building its 73-megawatt (MW) coal-fired power plant in Toledo, Cebu within the first quarter of the year.

In a recent interview with reporters, MGEN President and CEO Emmanuel Rubio said the project will account for the bulk of MGen’s capital expenditure this year.

Toledo a capex priority

 “Most of the capex would be for Toledo, which we expect to break ground by the first quarter,” he said.

Construction of the Toledo coal-fired plant is expected to take three years, with commercial operations targeted for October 2028. 

Last year, the project received confirmation from the Department of Energy that it is exempt from the government’s coal moratorium policy, clearing the way for development.

MGen’s retail electricity supplier arm, MGen RES, will purchase the plant’s entire 73-MW net output. 

Bid offers from the Chinese

The company has already received bid offers from Chinese engineering, procurement, and construction contractors to move the coal facility forward. 

At the same time, the company is advancing its clean energy initiatives in the area. Its Toledo Energy Development Corp. unit is developing a battery energy storage system, signing engineering, procurement, and construction contracts with Contemporary Amperex Technology Co., Limited and SUMEC Complete Equipment and Engineering Co. Ltd.

The Toledo BESS project will have a total capacity of 49 MW. The first 25-MW, 40-megawatt-hour phase is slated for completion by March, while the remaining capacity is scheduled for rollout in 2027, complementing the coal plant and supporting grid stability in the Visayas region.