Meralco secures fresh RE supply

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August 5, 2025 | 12:00am

MANILA, Philippines — Manila Electric Co. (Meralco) of tycoon Manuel V. Pangilinan has bolstered its renewable energy (RE) portfolio with a new power supply agreement (PSA) with First Quezon Biogas Corp. (FQBC).

The power deal will add 1.25 megawatts (MW) of baseload RE capacity to Meralco, with supply coming from FQBC’s 1.4-MW biogas plant in Candelaria, Quezon.

The facility utilizes advanced anaerobic digestion technology to convert locally sourced agricultural waste into clean power.

“We hope that the signing of the PSA would encourage more investment in biogas to help local communities and to further develop this type of RE technology,” Meralco senior vice president and regulatory management head Jose Ronald Valles said.

The agreement is set to be submitted to the Energy Regulatory Commission for review and approval, Valles said.

The PSA covers a period of 20 years, with delivery targeted starting June next year.

Aside from competitive baseload RE supply, Meralco said the partnership is also expected to reduce greenhouse gas emissions by providing a sustainable disposal solution to agricultural waste in Quezon.

The deal is also set to strengthen Meralco’s compliance with the government’s Renewable Portfolio Standards (RPS), which requires power suppliers to source an agreed portion of their supply from eligible RE facilities.

Currently, the RPS requirement increases by 2.52 percent per year.

To date, Meralco has already secured a total of 1,535 MW of RE capacity from various suppliers, surpassing an initial target of 1,500 MW.

Through strategic sourcing initiatives, the country’s largest power utility expects renewables to account for 26 percent of its supply mix by 2030.