MGen to convert 2 idle assets into gas facilities

Meralco PowerGen Corp. (MGen), the power generation arm of Manila Electric Co., is looking to develop two facilities into gas plants as the government continues to impose moratorium on new coal facilities.

Yari Miralao, president and chief executive officer of MGen Gas Energy Holdings, Inc., said the group still sees opportunities for Global Luzon Energy Development Corp. and Redondo Peninsula Energy Inc.

“Both are subject to the coal moratorium and can no longer be coal plants,” he told reporters in a recent interview in Singapore.

The Department of Energy (DOE) imposed the moratorium to cut carbon emissions and support the government’s push to shift to clean energy. However, in July, the DOE clarified that there was no total ban on developing coal-fired power plants in the country. Existing and operational facilities that have made commitments for expansion can still pursue these.

While not operational, the facilities have running expenses as the company needs to settle property taxes or lease payments.

“You’re sitting on two stranded assets that are incurring running costs, that are designed as coal plants that you know will never be coal plants anymore,” he said.

“So the most prudent thing to do is … to just convert these things into gas plants,” the official added.  —Lisbet K. Esmael INQ