MGen, Saudi partner prep solar project in Iloilo

Meralco PowerGen Corp. (MGen) is gearing up for its first collaboration with Saudi Arabian energy giant ACWA Power, starting with a solar project in Iloilo that could set the tone for broader renewable ventures under their recently sealed partnership.

In a chance interview with reporters last week, MGen president and chief executive Emmanuel Rubio said the companies were now evaluating land in Concepcion, Iloilo, which could host their initial joint development.

“That’s our first project with them,” Rubio said, noting that MGen had already signed a contract to acquire around 120 hectares in preparation for the installation.

The project will be a 120- to 125-megawatt (MW) solar farm—the first venture to emerge from the strategic agreement the companies inked on the sidelines of the Association of Southeast Asian Nations (Asean) Summit.

Both parties have committed to deploy utility-scale renewable energy projects across Southeast Asia.

Rubio said the development timeline would depend on the results of their assessment.

“After due diligence, maybe six months, eight months,” he said, indicating that the formal build-out would follow once feasibility and technical reviews are completed.

While the Iloilo project is strictly for solar energy, Rubio said the companies were studying whether their cooperation could extend to waste-to-energy (WTE) under the Green Energy Auction Program 6 (GEA-6).

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Rubio noted that while MGen has interest in WTE, market conditions in the Visayas remain a challenge.

“That’s the goal we’re looking at,” he said of a potential WTE venture. “I don’t think there’s an off-taker in Visayas for that kind of capacity… so we’re open to GEA-6.”

This signals that MGen may eventually position a WTE facility under the national auction program, where renewable capacity is competitively procured through long-term power supply agreements.