Meralco maps path to clean, inclusive energy future

Manila Electric Company (Meralco) unveiled a long-term sustainability strategy that commits to a “just, orderly, and affordable transition” to cleaner energy while expanding access for underserved communities.

The plan was launched at the Horizons: One Meralco Long-term Sustainability Strategy Summit led by Meralco Chairman and CEO Manuel V. Pangilinan and Energy Secretary Sharon S. Garin.

Pangilinan said the strategy balances environmental goals with social impact and affordability.

“If there is a carbon-free future, there must also be a poverty-free future.

Strategy means little if the power it delivers is not within reach of the people who need it most.

Every watt we deliver must carry not just power, but purpose,” he said.

Garin noted that coal still accounts for 62.5% of the country’s generation mix and urged faster renewable energy development supported by microgrids and hybrid systems for underserved areas.

She reiterated government targets of 35% renewable energy by 2030, 50% by 2040, and over 50% by 2050, framing the shift as systemic and people-centered.

“The energy transition is not just about replacing fuels—it’s about transforming futures,” she said.

Meralco Chief Sustainability Officer Raymond B. Ravelo outlined a three-horizon “Powering the Good Life” roadmap to 2050 that begins with large-scale renewables and progresses to solutions such as nuclear, hydrogen, biomass, and carbon capture.

“We have made a deliberate choice: to place sustainable, life-giving action at the heart of everything we do,” Ravelo said.

Meralco PowerGen Corporation (MGEN) is anchoring the shift through the MTerra Solar project, described as the world’s largest integrated solar and battery system expected to energize about 2,400,000 households and reduce roughly 4,300,000 tons of emissions annually.

“Our long-term commitment is to phase out coal by 2050.

But during this transition, coal remains necessary to bridge the gap—used responsibly and strategically—to guarantee that as we shift to cleaner sources, we do not sacrifice reliability and affordability,” MGEN President Emmanuel V. Rubio said.

One Meralco Foundation President Jeffrey O. Tarayao said community electrification efforts targeting schools, health centers, farms, and water systems will help bridge inequality.

“These are not just projects—they are lifelines.

They are bridges between poverty and productivity, between exclusion and empowerment,” Tarayao said.

Pangilinan closed the summit by calling for coordinated public-private action to ensure energy reforms translate to real social progress.

“Power alone is not enough.

True compassion requires a totality of solutions,” he said.

Meanwhile, the Department of Energy granted Meralco clearance to conduct a competitive selection process for 200 megawatts of renewable baseload supply scheduled to begin on Jan. 26, 2026.

DOE Undersecretary Mario Marasigan said the auction will replace Meralco’s terminated baseload contract with ACEN Corp., but the utility must first address recommendations from the Philippine Competition Commission and the Energy Regulatory Commission before proceeding.

“If Meralco feels that they have already complied with the comments of the PCC and the ERC, then they can proceed,” Marasigan said.

The PCC is reviewing Meralco’s CSPs as part of competition safeguards following the company’s January liquefied natural gas partnership with San Miguel Global Power and AboitizPower, which includes investment in LNG-fired assets and an LNG terminal in Batangas through Meralco PowerGen Corporation.

Marasigan said the DOE also received feedback on Meralco’s two other proposed CSPs—a 600-MW baseload and a 450-MW mid-merit supply—which remain under review.

The 600-MW auction is set for a 15-year term from February 2028 to February 2043, while the 450-MW CSP will have two delivery tranches starting in 2028 and 2029.

He added that the department continues to evaluate Meralco’s broader procurement pipeline to ensure competitive pricing and reliability, noting that a 900-MW baseload CSP is also being prepared to meet demand growth.

Beyond Meralco’s bids, Marasigan confirmed ongoing nuclear cooperation with the United States and Canada and separate talks with Japan and South Korea to expand technology partnerships aligned with the forthcoming implementing rules of the Philippine Atomic Energy Regulatory Authority.

He said the DOE is studying capacity-market frameworks and microgrid reforms to bolster long-term power security, particularly in off-grid areas.