Meralco Modernizes Grid for AI, BESS, and Solar Power

The Manila Electric Company (Meralco) is accelerating grid modernization to support the growing influx of distributed energy resources (DERs) such as solar panels, battery energy storage systems (BESS), electric vehicles, and microgrids, positioning itself at the forefront of the Philippines’ clean energy transition.

Speaking at the Berde Renewables Collaboration Summit 2025, Meralco First Vice President and Head of Networks Froilan J. Savet emphasized that the utility is undergoing a major transformation to handle multi-directional energy flows and decentralize its distribution network.

“Meralco is modernizing its grid to support the significant integration of renewable energy at its distribution system,” Savet said.

“We are not just distributing power to homes and businesses. We are now enabling a clean, flexible, and intelligent energy system toward a decentralized grid,” he added.

DERs—such as rooftop solar, EV chargers, and home battery units—allow consumers to become energy producers, reducing carbon emissions and improving energy access, reliability, and affordability.

Unlike traditional one-way power systems, DERs introduce two-way flows that require advanced coordination, monitoring, and control to avoid system instability.

Without a modernized grid, rapid DER adoption could lead to technical challenges such as voltage fluctuations, reverse power flows, and grid congestion.

To meet these challenges, Meralco has adopted a 4-I strategy focused on Integration, Innovation, Intelligence, and Interoperability.

Under Integration, the company ensures every DER connection enhances grid strength and reliability.

In the Innovation pillar, Meralco is deploying BESS, grid-forming inverters, and localized microgrids to increase system flexibility.

Artificial intelligence tools are being implemented under the Intelligence strategy to enable real-time monitoring, faster grid responses, and predictive analytics for demand and supply.

Interoperability ensures that all connected energy technologies—from EV chargers to inverters—can communicate and function cohesively through standardized protocols and cybersecurity safeguards.

Meralco is also investing in workforce upskilling to operate a more digital and complex power distribution system and is coordinating with policymakers to align its strategies with national energy and climate goals.

“The energy transition is already happening right now,” Savet said.

“The challenge for utilities is how quickly they can adapt to changes in the energy landscape while maintaining grid stability and reliability. In Meralco, we’re not just preparing for it. We’re enabling it,” he added.

Meralco, which serves over 7.6 million customers across Metro Manila and surrounding provinces, is playing a central role in integrating renewable energy sources into the national grid while helping the Philippines move toward its decarbonization targets.