Leading providers of energy needs

The economy needs energy sources to keep moving forward. Doing their part for the economy, PXP Energy Corp. and the Manila Electric Co. (Meralco), led by their chairman Manuel V. Pangilinan (MVP), provide such energy through exploration and distribution, respectively.

While known for being an electricity distributor, Meralco, as a group (One Meralco), is also in power generation, makes up of retail electricity suppliers, and offers various solutions related to energy.

For more than seven million households and 580,000 businesses across Metro Manila and nearby provinces, Meralco has been providing the electricity that powers their day-to-day. When combined, these accounted for over half of the country’s gross domestic product, according to the company.

But while recognizing its role in the economy, Meralco also considers its part in promoting sustainability through electricity distribution. Last year, it contracted almost 3% of its supply from clean energy. Meralco is looking to expand the renewable share in its supply mix to reach at least 22% by 2030.

In the area of power generation, the Meralco PowerGen Corp. (MGen) aims to make energy more accessible and contribute to attaining energy security. Part of its diverse portfolio of power generation plants is the San Buenaventura Power Ltd. Co. power plant, its first major investment, which is a pioneer in utilizing high-efficiency, low-emissions coal technology in the Philippines.

MGen’s overall power generation capacity stood at 2,251 MW (net) as of 2022, with the MGen group directly accounting for 63%, according to Meralco.

The corporation is also in pursuit of sustainability through MGen Renewable Energy, Inc. (MGreen), Meralco’s key platform for investments in utility-scale power plant development projects through renewable sources such as solar, wind, and hydropower, among others.

MGreen’s maiden project, the 55-megawatt (MW) BulacanSol power plant, generated 112 Gigawatt hours (GWh) of solar energy for Meralco last year. The MGen subsidiary is currently building solar plants in Baras, Rizal and Currimao, Ilocos Norte with capacities of 75 MW and 68 MW, respectively.

“MGreen will lead One Meralco’s plan to build an RE portfolio of at least 1,500 MW of attributable capacity before the end of the decade,” Meralco stated in its combined annual and sustainability report for 2022.

Meanwhile, with MGen’s acquisition of the Global Business Power Corp. (GBP) in 2021, it has extended its reach to the power supply market in Visayas and Mindanao. GBP generated 4,927 GWh of energy through its fossil-fuel-fired power plants, which have a 970-MW total net capacity, in the previous year.

In the competitive retail electricity market, Meralco reported that its local retail electricity supplier MPower has a “leading” 25% market share in terms of aggregate demand. It made over 6,700 GWh of energy sales to more than 580 customers in the previous year.

And similarly, MPower does its part in furthering clean energy adoption through contracting 600 MW of its supply from power plants that harness solar, wind, and geothermal technologies.

MPower serves the contestable market within the franchise area of Meralco.

Vantage Energy Solutions and Management, Inc., Meralco’s first affiliate retail electric supplier, meanwhile provides energy to contestable markets covered by Retail Competition and Open Access. With more than 130 commercial and industrial customers, Vantage Energy generated over 1,100 GWh energy sales last year.

Meralco further promotes renewable sources through MSpectrum, Inc., which presents solar energy solutions for homes and businesses as well as microgrid and utility-scale for off-grid and large-scale projects. It also offers Operations and Maintenance services for existing solar installations.

Spectrum has 661 solar projects across the country with a total capacity of more than 51 MW.

Beyond its service through electricity distribution and power generation, One Meralco also offers services relating to energy, such as through Meralco Energy, Inc. (MServ), which provides solutions in energy audit and energy efficiency, among others. Also part of the group is eSakay, Inc., which provides electric vehicles and charging infrastructure and hence promotes green mobility.

MPIC Chairman, President, and CEO Manuel V. Pangilinan (left) signs the definitive agreement to invest P2 billion to acquire 1.6 billion common shares of SP New Energy Corp. under its parents Solar Philippines Power Project Holdings, Inc., with President and CEO Leandro Leviste (right). — mpic.com.ph

Moving forward, as the energy industry plays a vital role in the shift to renewables, Meralco seeks to continue doing its part in this effort.

“Meralco shall continue to accelerate its just, orderly, and affordable transition to clean energy by carrying out our low-carbon transition through 2030, adopting new and green technologies by 2040, and preparing for deep decarbonization towards becoming coal-free before 2050,” Meralco Chairman Mr. Pangilinan, and President and CEO Ray C. Espinosa said in the report.

But along with the renewables rise, fossil fuels are still seen to have a part in energy needs.

“While there is a global shift towards renewable energy sources like wind and solar, fossil fuels will continue to play a vital role in meeting the energy needs of the Philippines, particularly in the power and transportation sectors,” Mr. Pangilinan and PXP Energy President Daniel Stephen P. Carlos said in PXP’s 2022 annual report.

PXP Energy is an upstream oil and gas company that is primarily into the exploration, maturation, and production of hydrocarbon resources. It has direct interests in different petroleum service contracts (SCs) in the country, such as the SC 74 in Linapacan and SC 75 in Northwest Palawan, where it has 70% and 50% operating interests, respectively.

Among PXP Energy’s subsidiaries is Forum Energy Limited, which is incorporated in the United Kingdom and focused on the Philippines, primarily with the SC 72 Reed Bank. Located offshore west Palawan, SC 72 Reed Bank holds the Sampaguita gas discovery.

PXP Energy also has an interest in Block Z-38 in the Tumbes basin offshore northwest Peru through the UK-registered Pitkin Petroleum Limited.

Currently, PXP Energy waits for the Department of Energy’s (DoE) approval for its three SCs in the areas of Northwest Palawan, Sulu Sea, and Recto Bank.

“PXP Energy Corporation remains steadfast in supporting the DoE as it promotes the exploration and utilization of indigenous petroleum resources to reduce the country’s reliance on imported fuel,” said Messrs. Pangilinan and Carlos.

Moreover, the Pangilinan-led Metro Pacific Investments Corp. (MPIC) recently entered into a definitive agreement to invest P2 billion to acquire 1.6 billion common shares of SP New Energy Corp. (SPNEC) from SPNEC’s parent Solar Philippines Power Project Holdings, Inc. (SPH), with MPIC to be given the option to become the single largest shareholder of SPNEC.

Proceeds of this purchase is expected to fund SPNEC’s land investments in Nueva Ecija, where it plans to develop “what could be Asia’s largest solar project.”

“Our thrust of pursuing renewable energy brings the MVP Group one step closer to fulfilling our mission of creating long-term value for our stakeholders through responsible and sustainable investments,” Mr. Pangilinan said in a statement. — Chelsey Keith P. Ignacio