BY JORDEENE B. LAGARE | Manila Times
MANILA Electric Co. (Meralco) is set to implement various solar power projects with an estimated cost of P10 billion.
To bankroll these projects, Meralco’s board of directors on Monday approved infusing an equity funding worth P424.2 million in MGEN Renewable Energy, Inc. (MGreen).
Meralco, through its power generation arm Meralco PowerGen Corp., established MGreen to serve as the platform to develop renewable energy (RE) projects, primarily solar, wind and run-of-the-river hydropower.
MGreen intends to use the amount to invest in various solar projects with a combined capacity of 210 megawatts (MW).
According to MGen President and Chief Executive Officer Rogelio Singson, these projects are in line with the firm’s commitment to develop large-scale RE projects, which will provide a reliable, environmen t-friendly power at competitive prices without any subsidy.
“We believe that now is the time to focus on building our green energy capacity, and we intend to be a key player in the [RE] space,” Singson said in a statement on Tuesday.
“We also hope to contribute to the country’s transition toward sustainable energy,” he added.
In June, Meralco unveiled its plan to invest in 1,000 MW of RE projects over the next five to seven years.
Meralco President and Chief Executive Officer Ray Espinosa said then the power distributor joined the “inexorable shift” to renewables.
Singson previously said MGen was working on several RE prospects, recognizing “the significant reduction in the development cost, particularly for large-scale solar and wind over the past years.”
Undertaking RE projects is aligned with MGreen’s growth aspirations focused on advancing RE prospects and utilizing high-efficiency, low-emission technology for baseload power plants.
Meralco holds the largest market capitalization among listed utility and power sector companies. Its units are engaged in the business of engineering and consulting, construction, bills payments and other electricity-related services.
Last month, Meralco unveiled its transition toward zero-carbon electricity with RE, with Espinosa saying this transition RE is inevitable, given twin perils of global warming and dwindling fossil fuel supplies.
Meralco shares fell by P1 or 0.27 percent to P369 apiece on Tuesday.