POWER DISTRIBUTOR Manila Electric Co. (Meralco) said a weaker peso is putting upward pressure on power generation costs, following the currency’s recent slide to a record low amid geopolitical tensions.

“A depreciation of the peso will put upward pressure on power rates, in particular, the generation charge,” Lawrence S. Fernandez, vice-president and head of utility economics at Meralco, told BusinessWorld.

On March 23, the peso fell to a record low of P60.30 against the US dollar, marking the first time it breached the P60-per-dollar level, according to data from the Bankers Association of the Philippines.

Mr. Fernandez said nearly 60% of Meralco’s cost of purchased power is dollar-denominated, as it largely consists of imported fuels such as coal and gas.

These costs are reflected in the generation charge, which typically accounts for more than half of consumers’ electricity bills.

Earlier this month, Meralco Chairman Manuel V. Pangilinan ordered a review of the company’s power supply mix to manage price volatility linked to movements in the global petroleum market.

“We are optimizing our energy mix and fully leveraging cost-efficient sources, regardless of technology. In addition, we are carefully managing our exposure to the WESM (Wholesale Electricity Spot Market), where price volatility is high,” he said in a social media post.

Gas currently accounts for about 60% of Meralco’s power supply, followed by coal at 20-25% and renewable energy at around 10%. The remainder is sourced from the Wholesale Electricity Spot Market.

Last month, Meralco raised electricity rates by P0.6427 per kilowatt-hour (kWh) to P13.8161 per kWh for March, driven by higher transmission and generation charges.

Meralco is the country’s largest private electric distribution utility, serving more than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.

Aside from electricity distribution, the company also has power generation interests through its subsidiaries.

Meralco PowerGen Corp. (MGEN), the company’s generation arm, said a weaker peso could affect not only generation costs but also the broader energy value chain.

“The impact of a weaker peso goes well beyond new power investments — it affects the entire energy value chain and is broadly inflationary, making imported goods, including fuel and equipment, more expensive,” MGEN President and Chief Executive Officer Emmanuel V. Rubio told BusinessWorld.

He added that currency weakness may also put upward pressure on interest rates, increasing financing costs for new projects and affecting returns over time.

“At MGEN, we have taken a proactive approach to managing these risks,” Mr. Rubio said.

He said the company has hedged its exposure to currency risks by largely locking in costs for the MTerra Solar project, an integrated solar facility spanning Nueva Ecija and Bulacan.

However, Mr. Rubio said a weaker peso would still feed through to electricity prices, as most of the country’s coal and gas supply is imported and dollar denominated.

“Ultimately, while the direct impact on generators is manageable, the broader concern is affordability — particularly as sustained cost pressures may influence customer demand and the overall energy mix toward more cost-competitive sources,” he said. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

RENEWABLE energy developer ACEN Corp. has secured fresh funding worth 7.517 billion Indian rupees (P4.78 billion) from Japanese banks for its 120-megawatt (MW) wind power project in Karnataka, India.

Diyos Renewables India Project Private Ltd., ACEN’s project developer, obtained a green term loan facility from Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp., the company said in a statement on Wednesday.

“Securing this project finance facility underscores the strong confidence of global financial institutions in ACEN’s renewable energy platform and our disciplined approach to developing high-quality projects,” ACEN International Chief Executive Officer Patrice Clausse said, adding that the project strengthens the company’s presence in a key renewable energy market.

The funding will support the initial 100-MW phase of the Bijapur Wind project.

The project is scheduled for commissioning in 2027 and is expected to generate about 330 million kilowatt-hours of electricity annually, while avoiding around 300,000 metric tons of carbon dioxide emissions.

ACEN said the project supports India’s target of expanding renewable energy capacity to 500 gigawatts (GW) by 2030.

Once completed, the facility will supply electricity under a power purchase agreement with Indian state-owned firm SJVN Ltd.

“The Bijapur Wind project reflects our focus on delivering scalable, high-quality projects that contribute to India’s clean energy transition while creating sustained value on the ground,” said Alok Nigam, chief executive officer of ACEN’s India platform.

Last month, ACEN said it would take full control of its renewable energy business in India after acquiring the remaining stake held by Singapore-based UPC Renewables in their joint venture.

Following the acquisition, ACEN will own Unlimited Renewables Holdings B.V., which is developing three renewable energy projects in Rajasthan and Karnataka with a combined capacity of 1,059 MW, covering both construction and advanced development stages.

As of March 2026, India accounts for 40% of ACEN’s net attributable capacity across its international portfolio. The company currently operates three solar power projects in the country with a combined capacity of 630 MW.

ACEN, the listed energy platform of the Ayala group, manages an attributable renewable energy portfolio of 7 GW across the Philippines, Australia, Vietnam, India, Indonesia, Laos, and the United States.

Shares in ACEN rose 3.75% on Wednesday to close at P2.77 each. — Sheldeen Joy Talavera

BATANGAS — Philippine Geothermal Production Company, Inc. (PGPC), a wholly owned subsidiary of SM Investments Corp., is targeting to add up to 400 megawatts (MW) of capacity over the next five to seven years through six pipeline projects.

“What we have on our radar is around 250 to 400 [MW],” PGPC President Napoleon L. Saporsantos, Jr. told visiting reporters at the Makiling-Banahaw (Mak-Ban) geothermal site on Tuesday.

PGPC currently operates steam fields in Mak-Ban, which straddles Laguna and Batangas, as well as in Tiwi, Albay, with a combined capacity of 682 MW.

The company also holds several geothermal service contracts under exploration. These include Mt. Labo across Camarines Sur, Camarines Norte, and Quezon; Mt. Malinao in Albay; Daklan in Benguet; and Baua-Sikaw in Cagayan.

It also has interests in geothermal prospects in Kalinga and Southwest Kalinga.

For 2026, PGPC has allocated about P3 billion for initial exploration activities.

“What’s really our focus are the Malinao and Labo [sites] because we already have drilling in those two, so that’s sort of our priority in terms of development,” Mr. Saporsantos said.

PGPC developed Southeast Asia’s first commercial geothermal power project in 1971 and has been supplying geothermal steam to power plants since 1979.

Mr. Saporsantos said geothermal energy helps support power supply stability, particularly amid global fuel supply uncertainties linked to the Middle East conflict.

“The important contribution of geothermal in the Middle East crisis is making sure that we’re operating optimally,” he said. — Sheldeen Joy Talavera