Panay, Cebu plants anchor MGEN’s diversified energy strategy

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Meralco PowerGen Corporation (MGEN) is positioning its Panay and Cebu thermal plants as Visayas keystones of a diversified portfolio that combines renewables, battery storage, natural gas, and baseload capacity, as the Philippines reassesses its long-term energy mix amid global fuel volatility and rising demand.

In Iloilo, Panay Energy Development Corporation (PEDC) has supplied baseload power since 2011, serving major demand centers including the Iloilo International Airport, Boracay Island, and the four provinces of Panay Island.

In Cebu, MGEN operates through Cebu Energy Development Corporation (CEDC) and Toledo Power Co. (TPC).

CEDC’s facility uses circulating fluidized bed (CFB) boiler technology and is the country’s first commercial clean coal-fired plant to adopt the system. Together, the two Cebu plants supply more than half of Cebu Island’s power demand.

MGEN said its strategy aligns with the government’s push for a more reliable and flexible power system as renewable energy capacity expands and grid stability challenges persist.

“Our priority is to help ensure a reliable and secure power supply while supporting the country’s evolving energy mix. As more renewable energy comes into the system, maintaining adequate and dependable capacity remains essential to meet demand and support grid stability,” said MGEN President and CEO Emmanuel V. Rubio.

Rubio said the company is deliberately building an integrated system rather than standalone assets.

“It is about building a portfolio that works as a system—one that can reliably meet demand, adapt to changing conditions, and support the country’s long-term energy security,” he added.

On the renewables side, MGEN, through its affiliate Terra Solar Philippines Inc. (MTerra Solar), energized the first 250 megawatts (MW) of its solar capacity in March 2026, marking its initial contribution to the national grid.

MTerra Solar also activated the first tranche of its battery energy storage system (BESS), capable of delivering up to 450 megawatt-hours (MWh) of electricity during nighttime hours using stored solar energy.

MGEN said this is the largest operational BESS in the Philippines to date, designed to enhance renewable integration and support grid reliability.

The company is targeting continued capacity ramp-up as the MTerra Solar project progresses toward full delivery.

MGEN Renewables also maintains over 400 MWac of net sellable capacity across seven solar sites in Bulacan, Ilocos Norte, Rizal, Nueva Ecija, Isabela, Batangas, and Tarlac.

MGEN’s natural gas portfolio, meanwhile, includes investments in LNGPH in the Philippines and PacificLight Power Pte. Ltd. in Singapore.

The company said these lower-carbon transition assets provide dependable capacity that supports system flexibility alongside variable renewable output, contributing to a more balanced generation mix and reductions in emissions intensity across the region.

MGEN is pursuing further baseload and storage capacity through the MGEN Toledo BESS, with Phase 1 targeted for completion in 2026, alongside ongoing expansion works at its thermal facility in Toledo, Cebu.

The company is also developing a 1,200-MW ultra-supercritical (USC) coal-fired power plant in Atimonan, Quezon Province, using high-efficiency, low-emissions (HELE) technology.

The Atimonan facility is expected to be operational by 2030, with projected output equivalent to around 7% of Luzon’s total demand.

With Philippine electricity demand projected to significantly increase by 2040, MGEN said no single technology can fully address reliability, affordability, and sustainability simultaneously.

The company said its approach combines baseload, renewables, and storage to strengthen system resilience and support the country’s transition toward a more sustainable energy future.