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Meralco plans to build power generation plants in Mindanao


MANILA, Philippines—Manila Electric Co. plans to break into the Mindanao power generation industry via selective projects fueled by either coal or natural gas, aiming to build a southern Philippine portfolio with capacity of between 135 and 300 megawatts.

Meralco forms part of the group of businessman Manuel Pangilinan, which has shown growing interest in doing business in the South, especially after the signing of the Bangsamoro peace accord.

In a recent chance interview, Meralco president Oscar Reyes said the group’s concentration would still be in Luzon but admitted that the company was also looking for greenfield or built-from-scratch projects in Mindanao.

“Our preference is greenfield but that’s without prejudice to doing brownfield in Mindanao,” Reyes said.

Under Meralco’s franchise, he said the group could generate power equivalent to 30 percent of the capacity of its own grid and 25 percent of the total national grid. This means it can build and/or acquire a power generation capacity of up to 3,000 MW, Reyes said.

Through its power generation unit, Meralco PowerGen Corp., the group had announced plans to build power facilities that could generate 2,700 MW in additional capacity in Luzon within a period of five years.

For Mindanao or even Visayas, Reyes said any forthcoming project would be selective.

“The capacity we’re building there is smaller. Some are focused on serving certain industries like mining—power generation projects for new greenfield mining,” Reyes said.

“We are bringing our track record and resources there so we can help create value in other areas of the country,” he said.

In Luzon, it was earlier reported that Meralco’s strategic intent would be to build “new, highly fuel-efficient, environmentally sound and reliable” combined cycle base load and mid-merit power plants.

The first 600-MW coal facility is now being put up at the Subic Bay Freeport in partnership with Aboitiz Power Corp. and Taiwan Cogeneration, through a company called Redondo Peninsula Energy (RP Energy). This marks Meralco’s re-entry to the power-generation business. An initial 300-MW capacity is targeted to be on stream by the first half of 2016.

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Tags: electricity production and distribution , Energy , Mindanao , Philippines - Regions , power plants

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    It beats the hell out of me why our government is awarding all the power plants to private companies … are our leaders eyes not wide awake to see that these private companies are making a killing out of the paying public? Are they so calloused not to feel the hardship brought about by the stiff electric bills people are paying? Wala na bang magaling na Filipino Managers na kayang magmanage ng govt owned power plants? Lahat ba ay corrupt?

    Utilities na lang ba … power generation, water , highways, airports, mass transport, banks … ang pinaka magandang biz sa Pinas at bakit nagaagawan ang mga private companies sa mga eto?

    Eto ba ang ibig sabihin ni Zobel ng kanyang “inclusive growth? Growth ng mga capitalist not to spare the poor …  fleece them thru expensive utilities, high interest rates when one loans and almost nil interests when the poor deposit their money in the capitalists’ owned banks like BPI by the Ayalas”?

    Walang escape ang paying public … the more they save on power usage … the more expensive it becomes because the paying public pay for the unused capacity!!!

  • joboni96

    lumalapit na si pangilinan
    sa lugar ng amo niyang intsik switik
    sa indonesia

    • Guest

       Nice one.

  • ealicer

    Hay naku dun talaga sa mahal mag i-invest meron naman sanang mura. 

  • Wadav

    We will never go wrong if we just follow what Germany, US, Ausralia & Japan are doing. ALL of them are concentrating on SOLAR ENERGY!

    • nakawan

      that’s coz they have enough base load power plants to never worry about supply issues. we don’t even have reserves anymore, Luzon is literally walking on a thin line. we need to build these plants first and then worry about solar and other RE sources

      • Guest

         The said countries have the financial, know-how and logistical means to do so.

      • nakawan

        and we don’t? ever heard of Aboitiz? First Gen? it’s not like they do these projects on their own, they partner with international generators and secure the latest technology for boilers, turbines, and generating equipment. how do you think we were able to build our existing power facilities in the first place?

  • http://pulse.yahoo.com/_IBKEW22CF7TEBHXR3ICWHN2SJE JaypeeR

    Kaya mahal kuryente sa Pnas kasi negosyante nag-decide kung saan magtayo ng planta ng kuryente. Bumili na lang ng kuryente ang Mindanao sa Malaysia thru submarine cables baka mas mura pa kaysa magtayo ng bagong planta yang Meralco.

    • nakawan

      may submarine cables ba sa Mindanao?

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