New MGEN Thermal Energy chief charts path to Asia-leading operator status

MGEN Thermal Energy, Inc., the thermal power generation arm of Meralco PowerGen Corporation, aims to achieve “best-in-class” operational standing in Asia while expanding its energy portfolio through 2030, according to newly appointed President and Chief Executive Officer Arnel Santos.

Santos said the company prioritizes raising standards across safety, reliability, cost efficiency, commercial performance, and employee development. “Best-in-class is not a label; it is actually a set of performance that we want to make sure we can legitimately claim we are the best-in-class thermal generation operator in Asia,” he stated.

Santos succeeded Felino “Lino” Bernardo, who transitions to head MGEN’s strategic energy transition efforts. Sam Manlosa was named chief operating officer of the thermal generation company.

The company recently secured and renewed ISO certifications across its renewable and thermal generation businesses to support its best-in-class program, reflecting its commitment to reliable operation of its Visayas power plants.

Santos emphasized the importance of sustaining the company’s existing operational performance while elevating standards. “We want to make sure that the good performance we have delivered so far is sustainable, that we continue to grow, and that we keep raising the bar for performance,” he said.

Growth strategy will center on improving efficiency and reliability through monitoring metrics such as net heat rate, alongside organic growth initiatives and capital projects including battery energy storage systems.

MGEN Thermal Energy is expanding its BESS portfolio, with the next phase of its Toledo battery facility in development. The company energized its Toledo BESS in Cebu, described as the first two-hour battery storage facility in the Visayas, with a first phase capacity of 25 MW and 56.44 MWh.

The second phase of Toledo BESS carries the same capacity and targets completion by June 2027, subject to regulatory approvals. Santos noted the facility is operational and performing arbitrage activities while awaiting provisional authority to operate. “We are now operating, online na siya, and we are doing arbitrage,” he said. “We are just waiting for the provisional authority to operate so we can participate in the reserves market.”

For the next phase, Santos said the company is developing a new facility that would be a “carbon copy” of the existing Toledo installation. He said they plan to present the proposal to the board next month for a final investment decision.

MGEN is developing an 83-MW coal plant in Toledo, designated TPC 1B, while continuing efforts to advance the delayed Atimonan project. The 1,200-MW Atimonan coal-fired facility in Quezon previously faced delays after the Department of Energy reviewed its clearance, but later reaffirmed it as a committed project after the company met requirements, including being deemed “construction-ready” and securing environmental approvals.

Santos said an upcoming competitive selection process is expected to move the Atimonan project forward. “The good news is that there is an upcoming CSP, and we want to participate once the TOR is released in September. If the outcome is positive, then the project will proceed,” he stated.

TPC 1B and the Atimonan facility are expected to begin commercial operations between 2030 and 2031.