Secure, affordable, competitive energy sector
The Philippines has clear economic goals: sustained growth and real economic security for its people. Underneath these goals, however, is the assumption that there would be enough power available to sustain economic activity and growth. Without reliable, affordable electricity, our development agenda stalls. The efficiency of the power sector is critical to economic security.
Power demand continues to rise. According to the Department of Energy (DOE), peak demand is projected to grow at an average annual rate of 5.19 percent. For 2025, forecasts point to 14,769 megawatts needed in Luzon, 3,111 MW in the Visayas, and 2,789 MW in Mindanao. These figures reflect the scale of economic activity ahead—and the urgency of preparing our power infrastructure to meet it.
The Marcos administration understands the stakes. The Philippine Development Plan (PDP) 2023-2028 lays out a direct strategy to build a secure, affordable, and competitive energy sector. At the heart of this strategy is the recognition that energy reliability underpins every major economic objective. Without it, productivity, industry, and digital transformation cannot be sustained.
Five key strategic actions have been outlined in the PDP: reducing electricity costs, coordinating investments, optimizing the fuel mix, strengthening demand-side management, and investing in clean energy technologies to meet growing demand and drive economic transformation. In line with these priorities, the DOE has advanced efforts to promote energy diversification, attract investments, and push for a more resilient and adaptable energy infrastructure—paving the way for a more efficient, responsive, and sustainable energy sector in the long term.
For this vision to materialize, every segment of the energy supply chain must evolve. Generation and transmission are vital, but it is distribution that most directly affects consumers and businesses. The country’s energy transition depends on a robust, responsive distribution network—and that’s where Manila Electric Co.’s (Meralco) role becomes critical.
Recently, President Marcos signed into law the extension of Meralco’s franchise, which was approved by both chambers of Congress. The extension grants Meralco continued authority to distribute electricity in Metro Manila and surrounding provinces until 2053. With 120 years of experience, Meralco now serves 7.75 million customers across 9,685 square kilometers—an area that drives the country’s economic engine.
Support for the franchise extension has come from various sectors, recognizing Meralco’s evolving role in powering communities and industries. In 2024, over 60 percent of its customer transactions were processed digitally. Through its advanced metering infrastructure, it has enabled greater transparency, efficiency, and choice, allowing consumers to participate in retail aggregation programs and better manage their energy use.
Meralco also completed 18 capital expenditure projects last year, including four smart substations using gas insulated switchgear technology. These facilities enhance network resilience and reliability—essential qualities in a high-demand, increasingly digitized economy.
It’s clear why Meralco earned its franchise renewal. But a franchise is not just a license—it’s a responsibility. Meralco must now prove it can lead the country through a complex energy transition marked by climate change, growing demand, urbanization, and evolving technologies.
To meet these challenges, Meralco must articulate a clear strategy: infrastructure upgrades, grid modernization, clean energy integration, and improved service in underserved areas. It must uphold its least-cost mandate through transparent procurement, while ensuring reliable supply in the face of shocks and surges.
This is not just about maintaining service. It’s about enabling transformation. Meralco’s footprint covers regions that are central to the country’s growth story. Its ability to deliver dependable, affordable, and demand-responsive power is directly tied to national development.
The next 25 years present a critical opportunity—and responsibility—for Meralco. As the country’s largest distribution utility, it is uniquely positioned to influence the pace and direction of the Philippines’ energy transition. Meralco must go beyond simply delivering reliable and affordable electricity; it must lead the sector’s transformation. Through innovation, strategic investments in smarter infrastructure, deeper integration of clean energy, and enhanced services across its franchise areas, Meralco can influence how quickly and effectively the country can move toward energy security and sustainability.
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Dindo Manhit is the founder and CEO of Stratbase Group.
