Meralco sets P25-B budget to storm-proof power systems
POWER distributor Manila Electric Co. (Meralco) is setting aside P25 billion next year for the “storm-hardening” of its distribution systems, according to its chief operating officer (COO).
“For 2025, we have a P25-billion budget,” Meralco Executive Vice-President and COO Ronnie L. Aperocho told reporters last week, noting that this only covers the distribution business.
Meralco needs to strengthen its power distribution networks due to the “parade of storms” the country is facing, he said.
“The integrity of our distribution system is really, parang (kind of) in danger if our system is not really that storm-hardened.”
Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said the company expects to increase its overall budget for 2025.
“I believe so,” Mr. Pangilinan said when asked if the company would allocate a higher capital expenditure (capex) budget next year, noting that the increase will be primarily driven by the P200-billion Terra Solar project.
Meralco, through its unit Terra Solar Philippines, Inc., is developing a project consisting of a 3,500-megawatt-peak solar power plant and a 4,500-megawatt-hour battery energy storage system.
The group took over the project after acquiring a controlling stake in SP New Energy Corp. through MGen Renewable Energy, Inc., the renewable energy development arm of Meralco Power Gen Corp. The latter is a unit of Meralco.
Mr. Pangilinan also said that the company is likely to allocate “some degree of capex” to San Miguel Global Power Holdings Corp.’s (SMGP) gas power plant, which is expected to become operational next year.
To recall, Meralco, through its subsidiary Meralco PowerGen Corp., signed a $3.3-billion landmark deal with Aboitiz Power Corp. and SMGP to launch an integrated liquefied natural gas project.
For 2024, Meralco set a capex amounting to about P40 billion, the bulk of which is for distribution utility and power generation.
As of the end of September, the company has spent P26 billion on capex, of which P15.3 billion was used for distribution network projects. The rest was utilized for the development of solar power plants and facilities for the telco tower business.
“I think it will be a better year next year for Meralco,” Mr. Pangilinan said.
For the January-to-September period, Meralco registered an attributable net income of P11.13 billion, higher by 7.2% from last year’s P10.55 billion.
Meralco expects to exceed its P43-billion profit target for 2024, driven by its strong financial and operating results for the nine months, accompanied by a continuing positive outlook.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
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