Tycoon Manuel V. Pangilinan is seeing higher capital spending for his Manila Electric Co. (Meralco) Group next year as the construction of its massive Luzon solar project—the biggest in the world—is in full swing.
In a chance interview with reporters, the Meralco chair said the increase in budget for 2025 would be “mainly driven by Terra Solar.”
SP New Energy Corp. (SPNEC), the renewable energy vehicle of Meralco PowerGen Corp., leads the development of the solar facility in Nueva Ecija and Bulacan. Designed to be the biggest yet in the global market, it is composed of 3,500 megawatts (MW) of solar panels and 4,000 MW-hours of battery storage.
READ: SPNEC taps Energy China for Luzon solar farm
Pangilinan did not disclose any figures. But for this year, the group allotted P40 billion.
Meanwhile, Meralco executive vice president and chief operating officer Ronnie Aperocho said the company has earmarked P25 billion for the power distribution business’ operations next year. The amount was slightly higher than P24 billion this 2024.
Aperocho said the bulk would be spent on “grid resilience and strengthening of the networks” given the series of storms hitting the Philippines.
“So the integrity of our distribution system is really in danger if our system is not really that storm-hardened,” he added.
He also hinted that the power generation business may receive more budget next year.
2025 outlook
Asked about his outlook for 2025, Pangilinan expressed optimism that the Meralco Group could witness even stronger performance.
“I think it will be a better year next year for Meralco. [We’re] quite confident. The economy is doing okay under President Marcos. [We’re] always optimistic,” he said.
The group reported a record nine-month performance, with its core net income posting double-digit growth of 17 percent to P35.1 billion against the P30 billion booked in the same period last year.
Meralco’s distribution business continued to provide the largest chunk, contributing 59 percent or P20.5 billion to the bottom line. Power generation came next with P8.9 billion, while retail electricity supply operations and nonelectricity businesses chipped in P5.7 billion.
Consolidated revenues also went up 6 percent to P355.4 billion. INQ