Meralco seals 1.25-MW biogas power supply deal
Manila Electric Co. (Meralco) has inked a deal to procure 1.25 megawatts (MW) of renewable power from First Quezon Biogas Corp. (FQBC) by mid-2026.
In a statement on Monday, the Pangilinan-led group said the power would be sourced from FQBC’s biogas facility in Candelaria in Quezon province.
The 20-year power supply agreement (PSA) will begin on June 26 next year.
“We hope that the signing of the PSA would encourage more investment in biogas to help local communities and to further develop this type of renewable energy technology,” Meralco senior vice president and head of Regulatory Management Jose Ronald Valles said.
“Per procedure, the PSA will now be submitted to the Energy Regulatory Commission for review and approval,” the official added.
The deal would also support Meralco’s compliance with the Department of Energy’s renewable portfolio standards, which require industry players to source 11 percent of their power sales from clean energy sources.
The mandated players are the electric cooperatives, distribution utilities and retail suppliers.
So far, the company has already secured 1,535 MW of renewable energy capacity.
By 2030, renewables are seen to account for 26 percent of the power distributor’s supply portfolio.
Meralco is the biggest power distributor in the Philippines, serving more than 8 million customers in Metro Manila, Bulacan, Cavite, Rizal and select areas in Pampanga, Laguna, Batangas and Quezon.
In April, President Marcos extended Meralco’s franchise until 2053.
Following this, Meralco said it would conduct a series of auctions this year to procure more than 2,000 MW of power supply it would need from 2026 to 2046. This will include 450 MW of midmerit requirements and 900 MW of baseload capacity.
The midmerit capacities would serve as gap fillers, ready to ramp up supply in case electricity fluctuates throughout the day.
Baseload power plants, meanwhile, deliver a steady supply of electricity.
