MGen allots P18B to expand RE portfolio
MANILA -The power generation unit of distributor Manila Electric Co. (Meralco) has earmarked at least P18 billion to boost its renewable energy portfolio by at least 2 gigawatts (GW) and accelerate its energy transition efforts.
Meralco PowerGen Corp. (MGen) said the new capacity would come from the solar and wind facilities that it would build with its partners until the end of the decade.
MGen’s clean energy unit, MGen Renewable Energy Inc. (MGreen), said that it would also ramp up its capacity through “more and larger” projects, including battery energy storage systems (BESS).
Existing capacity
BESS facilities are used to store excess power from power plants during off-peak hours. Once electricity demand increases, the facilities load the stored power back into the grid to augment supply and prevent outages.
MGreen currently has over 200 megawatts (MW) of capacity, consisting of the 55-MW Bulacan solar plant and the 75-MW Baras solar project in Rizal province.
The company previously entered into a joint venture agreement with Singapore-based Vena Energy to form Nuevo Solar Energy Corp. and develop a 68-MW solar project in Ilocos Norte province.
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The P3-billion project formally began commercial operations in March this year.
Article continues after this advertisementAccording to MGen president and chief executive officer Jaime Azurin, the parent company aims to reduce direct emissions by 20 percent by 2030 and become coal-free before 2050.
“We will continue to work with the energy industry, government and other pertinent stakeholders to help further accelerate the country’s energy transition as we aggressively pursue more renewable energy projects. This is in line with Meralco’s long-term sustainability strategy to embark on a just, affordable and orderly transition to clean energy,” Azurin said.
MGen currently has two solar projects in the pipeline in the provinces of Isabela and Nueva Ecija with a combined capacity of 67.75 MW.
Both projects were among the winning bidders in the Department of Energy’s second Green Energy Auction Program held in June.
