MGen, ACWA Power to build 125-MW solar plant in Iloilo

Meralco PowerGen Corp. (MGen) and Saudi Arabia-based ACWA Power are set to develop a 125-megawatt (MW) solar power project in Concepcion, Iloilo — marking their first joint venture under a strategic partnership focused on accelerating renewable energy deployment in the Philippines and the ASEAN region.

“We are looking at a land [parcel] in Concepcion, Iloilo. That’s our first project with them… hopefully for GEA-6,” MGen President and CEO Emmanuel V. Rubio told Manila-based reporters, referring to the Department of Energy’s Green Energy Auction Program (GEAP).

The solar facility will be built on a 120-hectare site and is currently undergoing due diligence.

Construction is targeted to begin within the next six to eight months.

Rubio said the project has no committed offtaker in the Visayas yet, prompting MGen to consider bidding into the sixth round of the green energy auction.

“We’re open to GEA-6,” he said, noting that the partnership is still undergoing discussions. “The value that ACWA will bring is their experience and their relationship with established EPCs [engineering, procurement, and construction]. Hopefully they can make this project very competitive.”

The Concepcion project is an offshoot of an agreement forged between MGen and ACWA Power middle of this year.

ACWA Power, a global leader in renewable energy and green hydrogen development, operates 78.8 gigawatts (GW) of energy capacity across 14 countries and has delivered some of the world’s lowest solar tariffs.

“This agreement represents our entry into the Philippines, in partnership with MGen, which marks a major milestone in ACWA Power’s expansion across Southeast Asia,” said Thomas Brostrom, ACWA Power’s chief investment officer.

“This collaboration combines our global expertise in renewable energy with MGen’s local knowledge, enabling us to deliver reliable, affordable, and sustainable power solutions that support the country’s shift towards a low-carbon future,” Brostrom added.

The agreement was signed in June 2025 on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia, and is aimed at co-developing renewable energy projects — particularly solar — in the Philippines and beyond.

MGen, the power generation arm of Manila Electric Co. (Meralco), currently operates more than 5,000 MW of net sellable capacity across traditional and renewable energy assets.

The deal brings together MGen’s local market expertise with ACWA Power’s global scale and experience in project execution.

“We are proud to work with a trusted partner like ACWA Power to further drive innovation and foster regional collaboration,” Rubio said. “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.”

Dennis B. Jordan, president of MGen’s renewable energy arm, MGreen, said the partnership affirms the company’s long-term commitment to expanding clean energy.

“This partnership is not only a testament to MGreen’s commitment to scaling up clean energy projects, but also a strategic move to lean on the expertise of ACWA Power,” Jordan said. “We are optimistic that this collaboration will help us in identifying and realizing impactful renewable projects.”

Together, MGen and ACWA Power aim to advance utility-scale renewable energy projects to help the Philippines achieve its clean energy targets and support ASEAN’s broader sustainable development goals.