MGen earmarks P1B for Toledo coal plant

The power generation arm of Manila Electric Co. (Meralco) has earmarked P1 billion this year to develop its planned coal-fired power plant in Toledo, Cebu. The project takes priority in the company’s capital spending program.

Emmanuel Rubio, president and chief executive officer of Meralco PowerGen Corp. (MGen), said most of the company’s capital expenditure for 2026 will be directed to the Toledo project.

“We expect [Toledo] to break ground by the first quarter of this year,” Rubio said.

The Toledo plant forms part of MGen’s near-term generation buildout. This is alongside ongoing work on the Terra Solar project, which remains on track.

Rubio said initial power exports from Terra Solar to the grid could start as early as the first quarter. This, even as the project remains within its contracted timeline.

He also said MGen is still focused on completing Terra Solar, with land acquisition for the next phase nearly halfway done.

Rubio added that the company is not treating upcoming solar developments as an expansion of Terra Solar. These will be separate projects contracted independently.

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Beyond Toledo, MGen is weighing future investments, including the Atimonan coal plant. This would operate under a long-term plan to transition away from coal by 2050.

Rubio said ammonia co-firing is likewise being studied as a possible alternative, although the technology remains under evaluation globally.

MGen is also preparing for possible gas developments pending future supply and policy developments. The company has rehabilitated an existing pipeline that can accept gas from the Malampaya platform.