Meralco in talks with gencos to boost capacity

MANILA, Philippines - Manila Electric Co. (Meralco) is in talks with power generation companies to boost its generation capacity by 2,400 megawatts.

In a briefing yesterday, Meralco PowerGen Corp. general manager Aaron Domingo said the group is looking to partner with other power generation firms to augment capacity within the Luzon grid by 2014, and provide affordable and reliable power to a broader customer base.

Domingo said San Miguel Energy Corp. is among the companies the group is in discussions with.

Meralco has re-entered the power generation business through the acquisition of a majority stake in Redondo Peninsular Energy Inc., which has the development rights and assets to a 600-megawatt coal-fired power plant in the Subic Bay Freeport Zone in Zambales province.

The Subic coal-fired power plant, which was estimated to cost more than P33 billion, is targeted for commercial operations by 2014.

“Every business we venture into is conceived with the belief that we will make a difference and add to the legacy of the Meralco brand... Our confidence sets us in motion as we prepare for opportunities and keep our commitment to building a sustainable future through pioneering, responsible and environment-friendly power plants,” said Manuel V. Pangilinan, president and chief executive officer of Meralco.

“We build on our milestones in 2010 and see opportunities to provide the reliable power at competitive prices. Our acquisition of a majority stake in RP Energy, whose plants are expected to be running by 2014 is less than a quarter of our aspiration for efficient and reliable energy output. Power generation will drive the growth of Meralco,” he further said.