MGEN makes final push for Atimonan coal plant

MANILA, Philippines — Meralco PowerGen Corp. (MGEN) is turning to its parent, Manila Electric Co., in what could be its last shot at finally advancing its 1,200-megawatt (MW) coal-fired power plant in Atimonan, Quezon.

MGEN president and CEO Emmanuel Rubio said the power generation firm is gearing up to participate in Meralco’s competitive selection process (CSP) for 900 MW of baseload electricity supply.

“Hopefully, when we win it, we can build it. This is the last opportunity for MGEN to execute Atimonan,” Rubio said in an interview.

The Atimonan Energy Power Plant has undergone several changes in fuel technology over the past decade. Initially proposed as a liquefied natural gas (LNG) facility, the project was later redesigned as a coal plant and received environmental clearance in 2015.

Regulatory hurdles, however, delayed its development, prompting MGEN to reconsider its fuel choice.

The company once again decided to pursue LNG technology before eventually reverting to its plan to develop an ultra-supercritical pulverized coal project.

“Atimonan will be coal. If we won’t win it with coal now, I don’t think Luzon needs another LNG terminal,” Rubio said, underscoring the need to secure a power supply agreement (PSA) for the project.

For now, he sees no reason to convert the project into an LNG-fired facility again.

“If we repurpose Atimonan as an LNG power facility, it won’t be competitive,” the MGEN executive stressed.

For a project as large as Atimonan, securing a buyer for its electricity output is crucial to making the investment viable.

A long-term offtake agreement provides developers with a ready market for the electricity they generate, helping support the project’s financing and development.

That leaves MGEN looking to Meralco, the country’s largest power utility with a vast franchise area comprising Metro Manila and nearby provinces.

Late last month, Meralco issued an invitation to bid for 900 MW of baseload power supply – the minimum amount of electricity needed on the grid to meet constant demand – under a 15-year PSA.

Winning bidders will supply Meralco with 600 MW of electricity starting Feb. 26, 2031, followed by an additional 300 MW a year later.

Prospective bidders may submit their expressions of interest until this Thursday. The pre-bid conference is scheduled for Nov. 6, while bids must be submitted by Dec. 9.