BUSINESS
Advocates Philippines
Meralco Taps Biogas Power In Quezon For Renewable Energy Push
Photo credit: Meralco Newsroom
The Manila Electric Company (Meralco), led by business magnate Manuel V. Pangilinan, has taken another step toward a greener future by signing a long-term power supply agreement (PSA) with First Quezon Biogas Corporation (FQBC). The agreement secures 1.25 megawatts (MW) of renewable energy (RE) from FQBC’s 1.4 MW biogas power facility located in Candelaria, Quezon.
At the heart of this partnership is an innovative solution that not only generates clean energy but also addresses a persistent environmental concern. The biogas plant utilizes advanced anaerobic digestion technology to convert agricultural waste—including manure from local farms—into a steady, renewable energy source. In doing so, it provides a sustainable waste disposal method while reducing harmful greenhouse gas emissions in the region.
"This PSA represents a meaningful step forward—not just for Meralco, but for the local communities and for the country’s clean energy transition," said Meralco Senior Vice President and Head of Regulatory Management, Jose Ronald V. Valles. "We hope it also sparks greater investment in biogas technology."
The 20-year agreement is set to commence on June 26, 2026, pending review and approval by the Energy Regulatory Commission. Once operational, the plant will supply reliable baseload power to Meralco at a competitive rate.
The deal also aligns with Meralco’s efforts to meet the Department of Energy’s Renewable Portfolio Standards (RPS), which require power distributors to source a portion of their electricity from renewable sources. This regulation aims to increase RE’s share in the national energy mix to 35% by 2030 and 50% by 2040. Under the RPS, compliance targets rise by 2.52% each year.
Meralco has already surpassed its initial RE procurement goal, having secured 1,535 MW of renewable capacity—exceeding its 1,500 MW target. With this and other strategic sourcing initiatives, the utility expects RE to comprise 26% of its total power supply by the end of the decade.
By partnering with FQBC, Meralco is demonstrating that clean energy development can go hand in hand with local environmental benefits and economic resilience—one biogas project at a time.
At the heart of this partnership is an innovative solution that not only generates clean energy but also addresses a persistent environmental concern. The biogas plant utilizes advanced anaerobic digestion technology to convert agricultural waste—including manure from local farms—into a steady, renewable energy source. In doing so, it provides a sustainable waste disposal method while reducing harmful greenhouse gas emissions in the region.
"This PSA represents a meaningful step forward—not just for Meralco, but for the local communities and for the country’s clean energy transition," said Meralco Senior Vice President and Head of Regulatory Management, Jose Ronald V. Valles. "We hope it also sparks greater investment in biogas technology."
The 20-year agreement is set to commence on June 26, 2026, pending review and approval by the Energy Regulatory Commission. Once operational, the plant will supply reliable baseload power to Meralco at a competitive rate.
The deal also aligns with Meralco’s efforts to meet the Department of Energy’s Renewable Portfolio Standards (RPS), which require power distributors to source a portion of their electricity from renewable sources. This regulation aims to increase RE’s share in the national energy mix to 35% by 2030 and 50% by 2040. Under the RPS, compliance targets rise by 2.52% each year.
Meralco has already surpassed its initial RE procurement goal, having secured 1,535 MW of renewable capacity—exceeding its 1,500 MW target. With this and other strategic sourcing initiatives, the utility expects RE to comprise 26% of its total power supply by the end of the decade.
By partnering with FQBC, Meralco is demonstrating that clean energy development can go hand in hand with local environmental benefits and economic resilience—one biogas project at a time.
Aug 4, 2025
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