MGen, Saudi firm team up for RE projects in Philippines

MANILA, Philippines — Saudi Arabia’s ACWA Power is making a foray into the Philippine green energy market through a strategic partnership with tycoon Manuel V. Pangilinan’s Meralco PowerGen Corp. (MGen).

The agreement between the two companies involves the exploration and development of renewable energy (RE) projects, particularly solar, in the Philippines and other countries in Southeast Asia.

Further details of the deal such as financing, target capacity and project scope were not immediately made available.

MGen is the power investment arm of industry giant Manila Electric Co., while ACWA Power is the world’s largest private water desalination company and the first mover into green hydrogen.

“At MGen, our vision is clear – we are determined to become the largest energy company in the Philippines and even beyond, leading the energy transition toward a cleaner, more sustainable future,” MGen president and CEO Emmanuel Rubio said.

The partnership, Rubio said, is a crucial step in expanding MGen’s RE footprint by harnessing ACWA Power’s global expertise and leadership in solar energy development.

“We are optimistic that this collaboration will help us in identifying and realizing impactful renewable projects,” said Dennis Jordan, president and CEO of MGen Renewable Energy Inc., the clean energy unit of the Meralco Group.

The tie-up is expected to draw on ACWA Power’s global portfolio of 78.8 gigawatts and MGen’s expertise in developing 4.95 GW of diversified energy assets across the Philippines.

This is aligned with a shared goal of accelerating the construction of large-scale RE projects in Southeast Asia to boost energy transition and sustainable development.

ACWA Power chief investment officer Thomas Brostrom said the partnership marks an important milestone in the company’s expansion across the region.

The deal was finalized on the sidelines of the ASEAN Summit in Kuala Lumpur, where ACWA Power also announced potential investments of up to $10 billion into key Malaysian entities.

Currently, ACWA Power is present in 14 countries in the Middle East, Africa, Central Asia and Southeast Asia, with its portfolio comprising 101 projects in operation, advanced development and under construction.