Meralco signs 20-year biogas supply deal
MANILA ELECTRIC CO. (Meralco) has entered into a 20-year power supply agreement (PSA) with First Quezon Biogas Corp. (FQBC) to source part of its renewable energy (RE) supply from a 1.4-megawatt (MW) biogas power plant.
In a statement on Monday, Meralco said it will draw 1.25 MW from FQBC’s biomass power plant located in Candelaria, Quezon province, a facility that converts locally sourced agricultural waste into electricity.
“We hope that the signing of the PSA would encourage more investment in biogas to help local communities and to further develop this type of RE technology,” Meralco Senior Vice-President and Head of Regulatory Management Jose Ronald V. Valles said.
According to Meralco, the power plant provides “sustainable disposal solution” for agricultural waste and manure from farms in the province, reducing greenhouse gas emissions.
The PSA, which is scheduled to commence on June 26, 2026, will be submitted to the Energy Regulatory Commission for review and approval.
The new deal forms part of Meralco’s compliance with its obligation under the renewable portfolio standards (RPS), which mandate electricity suppliers to source a portion of their RE requirement. At present, the RPS requirement increases by 2.52% per year.
To date, the power distributor has secured a total of 1,535 MW in RE capacity from various suppliers, surpassing its initial target of 1,500 MW. The company expects RE to account for 26% of its supply portfolio by 2030.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
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