Ensuring a sustainable future with energy security initiatives
Energy is a crucial driver of economic growth and development, but the world is facing significant challenges in ensuring a sustainable and secure energy future. According to the International Energy Agency (IEA), the world’s demand for electricity grew by 2.2% in 2023, less than the 2.4% growth observed in 2022. Meanwhile, global electricity demand is expected to rise at a faster rate over the next few years, growing by an average of 3.4% annually through 2026.
The reliance on fossil fuels for energy generation has severe environmental consequences, including greenhouse gas emissions and climate change. A report from S&P Global said that fossil fuels made up 82% of the global energy mix in 2021, together with gas and coal. The heavy reliance on fossil fuels has led to a steady increase in global greenhouse gas emissions over the past decades.
In the Philippines, the growing population and continued industrialization have led to a surge in electricity demand, which is expected to reach over 40,000 megawatts (MW) by 2040, far exceeding the current dependable capacity of 22,736 MW. The increasing demand places immense pressure on existing energy infrastructure and resources.
The Philippines is facing a mounting energy crisis as the country’s power demand continues to surge, putting immense pressure on existing energy infrastructure and resources.
In response, Manila Electric Company (Meralco), the Philippines’ largest power distribution utility, has been at the forefront of this energy crisis despite evolving energy regulations, shifting weather and climate patterns, and changing market dynamics.
In 2023, Meralco achieved record-breaking sales of 51,044 Gigawatt hours (GWh), marking a notable 4.4% increase from the previous year.
Inclusive and sustainable leadership
Led by Chairman and CEO Manuel V. Pangilinan, Meralco is committed to providing affordable, accessible, reliable, and clean energy to all its customers. The electric distribution company has embarked on various initiatives and programs aimed at bringing electricity to underserved communities, embracing renewable energy sources, and supporting the achievement of Sustainable Development Goals (SDGs).
In line with the national agenda of transitioning to low-carbon energy sources, Meralco has embarked on a mission to meet the country’s growing energy demand with renewable energy. The company has set ambitious targets to secure 1,500 MW of renewable energy by 2025, aligning itself with the Department of Energy’s (DoE) Renewable Portfolio Standards.
Meralco also aims to build up to 1,500 MW of renewable energy generation capacity across multiple technologies through 2027, signaling its dedication to driving the shift towards clean energy solutions.
“With committed projects set to raise installed power capacity by 12,427.65 MW over the next five years, the outlook for the power sector looks encouraging,” said Mr. Pangilinan.
The sustainability agenda of Meralco, “Powering the Good Life,” is centered around four strategic pillars: Power, Planet, People, and Prosperity.
Under the Meralco Electrification Program (MEP), the company has accomplished 100% electrification of 536 priority sites, providing electricity to a total of 72,876 households in 2022. The MEP, backed by One Meralco Foundation’s Household Electrification Program, has also facilitated the electrification of 6,376 low-income households that were previously without access to electricity.
Meralco’s subsidiary, Spectrum, has successfully energized numerous private, educational, and government institutions, with a total capacity of 14 MWp in 2021.
Moreover, the electric company has been actively working to provide energy access to isolated communities. Through the implementation of microgrid solutions, the company has illuminated 29 households in Isla Verde with a 32-kWp solar PV and 192-kWh battery energy storage system (BESS), as well as 140 households in Cagbalete Island with a 60-kWp solar PV and 150-kWh BESS. Plans are also under way to scale up these microgrids to encompass additional communities on both islands.
Meralco is also expediting its renewable energy build-out plan. Meralco’s subsidiary, MGreen, has launched BulacanSol, a 55-MW solar farm, which commenced operations in May 2021. Additionally, Global Business Power’s (GBP) inaugural solar power plant, with a peak capacity of 115 MW in Rizal, is set to come online in 2022.
“We are making significant strides in our energy transition journey to become a significant renewable energy player in the country. More broadly, we are committed to pursuing innovative and sustainable investments that can bring significant value to our environment, our customers, our shareholders, our communities, and our people,” Mr. Pangilinan mentioned.
Efforts beyond Meralco’s core function
Meralco recognizes the role of electricity in empowering communities and improving lives, extending its reach beyond traditional electrification programs to promote the well-being of communities.
One of Meralco’s key initiatives under Mr. Pangilinan is focused on expanding water access to households, particularly in areas where potable water is scarce. The electric company is directly tackling a fundamental need for many underserved communities by providing access to clean and safe water.
Meralco has also taken proactive steps to provide electricity to schools, with the goal of expanding educational opportunities in the communities it serves. The project aims to create a conducive learning environment for students that further contributes to the development of human capital in the area.
The Pangilinan-led electric company is also committed to enhancing access to quality healthcare by ensuring that healthcare institutions have reliable access to electricity. This contributes to the overall well-being of communities by enabling the delivery of essential medical services.
Furthermore, Meralco has undertaken measures to increase disaster resilience and recovery in the areas it serves. By providing training to cooperative staff and communities, Meralco is demonstrating its dedication to supporting communities during challenging times and reinforcing the importance of preparedness and resilience in the face of natural disasters.
“Beyond our traditional role of providing power and services to our customers at affordable rates, Meralco takes to heart our overarching mission of improving people’s welfare, in coordination with, and with the support of government,” Mr. Pangilinan said.
“With sustainability at the core of Meralco’s strategy and operations, we will continue to use energy to deliver sustainable, enduring, and meaningful progress. We look forward to uplifting and enabling many more Filipinos to power better lives not only for themselves today but, more importantly, for their children’s tomorrow,” he added. — Mhicole A. Moral
