MGEN spending P8.8 billion for Cebu coal project

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January 2, 2026 | 12:00am

MANILA, Philippines — Pangilinan-led Meralco PowerGen Corp. (MGEN) will invest roughly $150 million (about P8.8 billion) in expanding its coal-fired power capacity in Cebu, its top executive said.

MGEN president and CEO Emmanuel Rubio said the investment would fund the development of the 73-megawatt (MW) Toledo coal project in the province.

He added that the project is slated to break ground in the first quarter, with about P1 billion earmarked for this year alone.

MGEN, the power generation arm of utility giant Manila Electric Co., intends to complete the Toledo project by October 2028.

Upon completion, the plant’s generation output will be sold to MGEN RES, the retail electricity supply arm of MGEN.

In an earlier interview, Rubio said MGEN secured government confirmation in November 2024 that the Toledo project was exempt from the country’s coal ban.

While prohibiting the development of new coal facilities, the moratorium is not an outright ban, as it does not cover projects that are already committed.

Among those not included in the ban are indicative projects with substantial accomplishments and approved clearances from local government units and the regional development council where they are located.

Apart from the Toledo project, MGEN likewise obtained clearance for its planned 1,200-MW Atimonan coal plant in Quezon.

The Quezon project, however, is subject to several conditions, including a commitment to no longer use coal as fuel by 2050.

According to Rubio, MGEN is exploring the economic viability of using ammonia, an inorganic chemical compound of nitrogen and hydrogen, as a potential fuel source.

If no alternative fuel is found, he said MGEN would be forced to shut down the plant by 2050.