Meralco Leads Compliance with Renewable Portfolio Standards
Manila Electric Company (Meralco), the power utility giant, has emerged as the frontrunner in meeting the Renewable Portfolio Standards (RPS) with an impressive 1,880 megawatts (MW) of contracted renewable energy (RE) in its supply portfolio. This surpasses its initial commitment of 1,500MW, which was mandated by the RPS policy.
The RPS, implemented by the Department of Energy (DOE), mandates power utilities and other participants to secure a prescribed percentage of their supply from RE facilities. For covered entities, the RPS sets an annual 2.52% increment for RE off-take. This policy provides a guaranteed market for renewable energy installations.
In line with the government’s green technology developments and decarbonization goals, Meralco aims to achieve a 35% share of RE in the power mix by 2030, and 50% by 2040.
Raymond B. Ravelo, Meralco’s First Vice President and Chief Sustainability Officer, emphasized the company’s commitment to a just and affordable transition to clean energy. He stated, “This commitment solidifies our drive to bring to life projects that will help serve the country’s growing energy demand with greener power.”
Meralco has taken the lead in contracting pure renewable energy and energy storage capacity for its mid-merit capacity needs of 850MW, which will be phased in for delivery in 2026 and 2027. The company is also in the process of securing RE-backed installations for its baseload capacity.
To further reinforce its sourcing of RE-generated supply, Meralco is utilizing its retail electricity supplier (RES) unit, MPower. Additionally, its power generation subsidiary, Meralco PowerGen, is ramping up solar power developments with plans for energy storage coupling.
Meralco aims for RE to account for 22% of its distribution utility’s supply portfolio by 2030 and 18% of MPower’s supply by 2025 through its strategic sourcing initiatives.
By embracing clean energy, Meralco expects to reduce its carbon emissions by 15% by 2030 compared to its baseline forecast. Ravelo emphasized, “We aspire to be coal-free by 2050 and will continue to elevate and evolve our sustainability initiatives by adopting next-generation clean technologies and implementing deep decarbonization efforts.”
Meralco’s sustainability agenda is aligned with the United Nations’ Sustainable Development Goals, and it implemented its “Powering the Good Life” sustainability strategy in 2019, focusing on four pillars: power, planet, people, and prosperity.
