Philippines Manila Electric Co. (Meralco) had exceeded its target renewable energy (RE) contracts with an equivalent capacity of 1,880 megawatts (MW) as part of its long-term sustainability strategy. This was disclosed recently in a press statement. The firm said, “It had breached its initial target of 1,500 MW of RE capacity from various suppliers in compliance with the government’s renewable portfolio standards (RPS) policy.”
“Our just, orderly, and affordable transition to clean energy is at the core of our sustainability journey, and this commitment solidifies our drive to bring to life projects that will help serve the country’s growing energy demand with greener power,” Meralco First Vice-President and Chief Sustainability Officer Raymond B. Ravelo said.
“We will continue to elevate and evolve our sustainability initiatives as we implement our long-term sustainability strategy that involves the adoption of next-generation clean technologies and deep decarbonisation efforts as we aspire to be coal-free by 2050,” he added.
Under the RPS scheme, electricity suppliers are required to source a portion of their energy supply from eligible RE sources to contribute to the growth of the RE industry in the Philippines, said the note.
As of end-2022, renewable energy (RE) accounted for about 22% of the country’s total energy mix, with coal-fired power plants accounting for almost 60%. The government targets to increase the share of RE to 35% by 2030 and 50% by 2040. Last year, the Department of Energy raised the RPS requirement to 2.52% per annum starting in 2023 from 1% per annum previously.
“Through Meralco’s strategic sourcing initiatives, RE is expected to account for 22% of the distribution utility’s supply portfolio by 2030, and 18% of Meralco’s retail electricity supplier, MPower, by 2025,” the company said.
This will enable the company to reduce its total carbon emissions by 15% in relation to the projected baseline 2030 emissions, it said.