PEDC Unit 3 back on grid ahead of recovery schedule

Panay Energy Development Corporation (PEDC), a subsidiary of MGEN Thermal, has synchronized Unit 3 of its 278.4-megawatt (MW) coal-fired power plant in Lapaz, Iloilo City to the grid, completing its recovery from an equipment failure in May 2026.

The restoration, announced July 2, 2026, brings back an important source of reliable power for Panay Island and the wider Visayas.

The unit returned to service ahead of the previously communicated recovery timeline following an intensive engineering and restoration program that prioritized safety, technical rigor, and operational excellence.

“The successful return of PEDC Unit 3 reflects the strength of our engineering capabilities, disciplined execution, and the dedication of our people and partners. Beyond restoring generating capacity, this recovery has further strengthened our engineering governance and asset management practices, enabling us to continue delivering safe, reliable, and dependable power to the communities and industries we serve,” said Arnel L. Santos, President and CEO of MGEN Thermal.

The recovery covered comprehensive engineering assessments, forensic investigation, equipment repairs, and extensive testing.

It also involved close collaboration with original equipment manufacturers, independent technical experts, contractors, and the National Grid Corporation of the Philippines (NGCP) to ensure the unit met stringent technical and operational requirements before returning to service.

PEDC said it will continue to closely monitor the performance of Unit 3 while completing the remaining engineering enhancements identified during the recovery process.

Lessons gained from the restoration will be integrated into MGEN Thermal’s engineering standards and asset management framework to further strengthen the reliability of its generating fleet.

PEDC owns and operates the 278.4-MW coal-fired power plant in Iloilo City using circulating fluidized bed (CFB) technology, which plays a critical role in supplying the power requirements of Panay Island and select areas across the Visayas in support of regional energy security and economic growth.

MGEN Thermal is a subsidiary of Meralco PowerGen Corporation (MGEN), which holds a portfolio spanning thermal, liquefied natural gas (LNG), solar, and battery energy storage, with nuclear energy among the technologies being explored for the future.

MGEN operates through key subsidiaries MGEN Thermal Energy, Inc., MGEN Renewable Energy, Inc., and MGEN Gas Energy Holdings, Inc., and holds stakes in PacificLight Power (PLP), an LNG facility in Singapore; SP New Energy Corporation (SPNEC); and a 40.2 percent interest in an integrated LNG facility in Batangas, Philippines.

As of May 2026, MGEN’s portfolio represents a combined net saleable capacity of 5,069.7 MW from both traditional and renewable sources, along with Battery Energy Storage Systems (BESS) with a capacity of 56.4 megawatt-hours (MWh).