MGEN, Saudi firm to launch first solar farm partnership

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December 1, 2025 | 12:00am

MANILA, Philippines — Pangilinan-led Meralco PowerGen Corp. (MGEN) and Saudi-listed ACWA Power are finally setting their joint venture in motion, kicking off with a planned large-scale solar farm in Iloilo.

In an interview, MGEN president and CEO Emmanuel Rubio said they are gearing up to launch a 125-megawatt solar facility designed to participate in the government’s green energy auction (GEA) program.

Once due diligence is complete, construction could start in six to eight months, he said.

“We were looking at that goal, but I don’t think there’s an offtaker in the Visayas for that capacity. So we’re open to GEA,” Rubio said.

Under GEA, winning bidders receive a long-term contract with a set green energy tariff. This provides developers with revenue certainty for the power they generate.

While further details remain under wraps, Rubio expects its first project with ACWA Power to stand out as a highly competitive contender in the Philippines’ rapidly growing renewable energy market.

“The value that ACWA will bring is their experience and their relationship with established EPC (engineering, procurement and construction) contractors. Hopefully they can make this project very competitive,” he said.

This development follows the strategic partnership the two companies forged earlier this year, signaling the Saudi Arabian firm’s initial push into the Philippine clean energy sector.

Apart from the Philippines, the agreement also involves the exploration and development of renewable power projects across Southeast Asia.

“At MGEN, our vision is clear – we are determined to become the largest energy company in the Philippines and even beyond, leading the energy transition toward a cleaner, more sustainable future,” Rubio said.

MGEN, the power generation arm of utility giant Manila Electric Co., is the company behind the P200-billion MTerra Solar project in Central Luzon, which is poised to become the world’s largest integrated solar and battery storage facility.

ACWA Power, meanwhile, is present in at least 14 countries in the Middle East, Africa, Central Asia and Southeast Asia, with its portfolio comprising over 100 projects in operation, advanced development and under construction.