MGen taps Saudi Arabian firm in Asean expansion
The power generation arm of Manila Electric Co. is not limiting itself to the Philippines when it comes to renewable energy growth, as it seeks entry into other neighboring markets via a partnership with a Saudi Arabian firm.
On the sidelines of the Asean Summit in Kuala Lumpur, Malaysia, top executives of Meralco PowerGen Corp. (MGen) and ACWA Power sealed a pact to explore and develop renewable energy projects, particularly solar facilities.
Under the deal, both parties would deploy utility-scale renewable projects across countries belonging to the Association of Southeast Asian Nations.
In a statement Wednesday, MGen president and chief executive Emmanuel Rubio said the agreement would speed up the group’s goal “to become the largest energy company in the Philippines and even beyond …”
He added, “This partnership marks a notable step forward in our goal to expand MGEN’s renewable energy footprint by leveraging ACWA Power’s global expertise and cost leadership in solar PV development.”
The Filipino firm could not disclose yet the initial investment as they have to finalize capacity commitments.
MGen—backed by tycoon Manuel V. Pangilinan—has a net saleable capacity of 4,953.3 megawatts (MW) across its diversified portfolio in the Philippines and Singapore as of end-March.
Notable projects
One of MGen’s notable projects is the massive MTerra Solar in Luzon. With investment requirements of about P200 billion, the facility, once finished, will have 3,500 MW of total capacity and a 4,500 megawatt-hour battery energy storage system.
The alliance also marks ACWA Power’s first venture in the Philippine energy sector.
ACWA Power is known as the world’s largest private water desalination firm and leader in energy transition, given its 78.8 gigawatts of capacity.
“[This is] a major milestone in ACWA Power’s expansion across Southeast Asia,” ACWA Power chief investment officer Thomas Brostrom said.
“This collaboration combines our global expertise in renewable energy with MGen’s local knowledge, enabling us to deliver reliable, affordable and sustainable power solutions that support the country’s shift toward a low-carbon future,” the executive added.
