Meralco Bats For Energy Security

The Manila Electric Company (Meralco) has been implementing strategic sourcing initiatives and upgrades in its distribution network to ensure energy security for its stakeholders.

Meralco works 24/7 to upgrade its distribution network facilities to meet the growing demands of customers within its franchise area. I Photo: Meralco

Substantial investments have been made to continuously meet evolving requirements and further improve service to Filipino consumers.

Meralco's capital-intensive projects are geared towards strengthening and making its distribution network and facilities more robust, resilient, and intelligent, which is especially critical given severe weather disturbances.

These efforts are also essential for Meralco to maintain a high level of service reliability for close to 8 million consumers across its franchise area.

The company has ventured into power generation through a subsidiary that partners with other private sector players.

With a vision to build a diversified portfolio of renewable energy projects and soon participate in the largest liquefied natural gas (LNG) integrated facility in the country, Meralco is poised to play a pivotal role in shaping a sustainable energy future.

Consistent with its approved Power Supply Procurement Plan, Meralco completed in the first quarter of the year a Competitive Selection Process for 15-year Power Supply Agreements covering 3,000 MW baseload requirements and a 400-MW baseload interim power supply agreement effective until February 2025.

Notices of Award have been issued to the winning bidders, and the resulting contracts have been submitted for review and approval by the regulator prior to implementation.

Beyond its sourcing initiatives, Meralco has continued investing in the expansion and upgrading of its distribution network facilities to improve service reliability and operational flexibility.

Among the projects completed in the first quarter of 2024 are the replacement of a 100 MVA Power Transformer in Taguig City, the installation of an 83 MVA Power Transformer at Abubot Substation in Dasmariñas City, Cavite, the uprating of the Pamplona-San Pedro 115 kV Line running from Las Piñas City to San Pedro City in Laguna, and reliability improvements of the Malinta 115 kV Substation in Valenzuela City.

In addition, 299 poles were relocated for road widening projects of the Department of Public Works and Highways (DPWH) and various Local Government Units (LGUs).

Meanwhile, 64 poles were relocated for the government’s Build Better More infrastructure program, including the PNR South Commuter, PNR North 1, NLEX-SLEX Connector Road, Metro Manila Subway Project (MMSP), C5 Southlink, and Manila-Cavite Toll Expressway.

“The growth in our first-quarter sales volume reflects the growing demand for power across all customer segments with the improving economic prospects. In the month of April this year, we already reached record peak demand in the Meralco franchise area, which exceeded 9,000 MW. With Red and Yellow Alerts hoisted over the Luzon grid several times last April, we anticipate a challenging power supply situation throughout this dry season, coinciding with the El Niño phenomenon,” Meralco Executive Vice President and Chief Operating Officer Ronnie L. Aperocho said.

“Nonetheless, we remain vigilant as we work with energy industry players in implementing demand-side management programs to help lessen the strain on the power grid and continuously deliver stable and reliable service to consumers. We also continue to proactively encourage more participants to join the Interruptible Load Program (ILP), which embodies bayanihan among private sector players, as this proves to be valuable during this critical season,” Mr. Aperocho added.

The ILP is a voluntary and demand-side management program that calls on big power consumers like commercial and residential accounts to temporarily de-load from the grid and use their generating units or reduce their operations when there is insufficient power supply.

Currently, the total capacity available for de-loading in Meralco’s area is more than 500 MW from over 100 companies. The ILP has been implemented 27 times in the Meralco franchise area since 2014.

Central to Meralco’s value creation story is the thrust to pursue power generation projects through Meralco PowerGen Corporation (MGen) to contribute to the Philippines’ long-term energy security.

MGen currently has a diversified portfolio of power plants in different parts of the country, including renewable energy projects in Ilocos Norte, Bulacan, and Rizal.